Luckin Coffee (OTCMKTS:LKNCY) Sees Unusually-High Trading Volume After Strong Earnings

Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY) saw strong trading volume on Monday following a better than expected earnings announcement. 4,081,653 shares traded hands during mid-day trading, an increase of 169% from the previous session’s volume of 1,519,885 shares.The stock last traded at $37.00 and had previously closed at $35.00.

The company reported $0.64 earnings per share for the quarter, beating analysts’ consensus estimates of $0.60 by $0.04. Luckin Coffee had a return on equity of 25.48% and a net margin of 6.74%.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. The Goldman Sachs Group set a $49.00 price target on shares of Luckin Coffee and gave the stock a “buy” rating in a report on Sunday, June 21st. Jefferies Financial Group started coverage on shares of Luckin Coffee in a research note on Tuesday, June 9th. They issued a “buy” rating and a $43.60 price objective on the stock. Finally, Zacks Research upgraded shares of Luckin Coffee from a “strong sell” rating to a “hold” rating in a research report on Monday, April 6th. Two investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $48.20.

Luckin Coffee Stock Performance

The company has a 50 day moving average of $31.52 and a 200 day moving average of $33.15. The firm has a market cap of $10.61 billion, a P/E ratio of 23.13 and a beta of -0.33.

About Luckin Coffee

Luckin Coffee Inc is a China-based coffeehouse chain that combines a digitally driven ordering platform with a network of physical outlets. The company’s mobile app and in-store kiosks enable customers to place orders for takeaway or delivery, while its proprietary supply chain supports rapid store expansion and consistent product quality. Luckin’s retail portfolio includes “grab-and-go” pickup points, delivery-only kitchens and full-service cafés designed to meet the varied needs of urban consumers.

Luckin’s menu features a broad range of espresso-based drinks, including lattes, Americanos and cold brews, complemented by tea-based beverages, fruit juices and a selection of light food items such as sandwiches and pastries.