Qfin (NASDAQ:QFIN) Lowered to Equal Weight Rating by Morgan Stanley

Key Points

• Morgan Stanley downgraded Qfin from Overweight to Equal Weight and set a $13 price target, while the broader analyst consensus is “Reduce” with an average target of $12.29.
• Qfin shares fell 17.4% to $9.53, near their 52-week low, amid several cautious analyst actions including Citigroup’s downgrade to Sell with an $8 target.
• The company remains profitable, reporting $0.55 in quarterly EPS, a 27.48% net margin and 20.85% return on equity, but recent results and outlook have raised concerns about slowing earnings and revenue growth.

Qfin (NASDAQ:QFIN - Get Free Report) was downgraded by investment analysts at Morgan Stanley from an "overweight" rating to an "equal weight" rating in a note issued to investors on Wednesday. They currently have a $13.00 price target on the stock. Morgan Stanley's target price suggests a potential upside of 36.43% from the company's previous close.

A number of other analysts have also recently commented on QFIN. Citigroup cut Qfin from a "buy" rating to a "sell" rating and set a $8.00 price target for the company. in a research report on Wednesday. Zacks Research raised shares of Qfin from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Bank of America reaffirmed a "neutral" rating and issued a $15.33 target price on shares of Qfin in a report on Wednesday, May 27th. Jefferies Financial Group reaffirmed a "buy" rating and set a $15.40 price objective on shares of Qfin in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft set a $13.00 target price on shares of Qfin in a report on Wednesday, August 12th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average target price of $12.29.

Qfin Trading Down 17.4%

Shares of Qfin stock traded down $2.00 during trading on Wednesday, reaching $9.53. The company's stock had a trading volume of 6,324,915 shares, compared to its average volume of 1,574,475. Qfin has a 52-week low of $9.52 and a 52-week high of $32.69. The company has a market cap of $1.16 billion, a price-to-earnings ratio of 1.75 and a beta of 0.63. The firm's 50-day moving average is $13.65 and its two-hundred day moving average is $13.93. The company has a quick ratio of 2.22, a current ratio of 2.22 and a debt-to-equity ratio of 0.03.

Qfin (NASDAQ:QFIN - Get Free Report) last posted its quarterly earnings results on Friday, August 14th. The company reported $0.55 earnings per share for the quarter. Qfin had a net margin of 27.48% and a return on equity of 20.85%. The business had revenue of $524.96 million during the quarter. On average, sell-side analysts anticipate that Qfin will post 3.74 earnings per share for the current year.

Insider Activity

In other Qfin news, Director Xiaohuan Chen bought 4,000 shares of the business's stock in a transaction dated Tuesday, June 9th. The shares were purchased at an average price of $14.41 per share, with a total value of $57,640.00. Following the completion of the purchase, the director owned 19,000 shares in the company, valued at $273,790. This represents a 26.67% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. 17.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Qfin

A number of hedge funds and other institutional investors have recently modified their holdings of QFIN. FountainVest China Capital Partners GP3 Ltd. acquired a new position in Qfin during the 2nd quarter valued at about $95,483,341,000. APEIRON CAPITAL Ltd raised its position in shares of Qfin by 29.5% in the 4th quarter. APEIRON CAPITAL Ltd now owns 1,027,455 shares of the company's stock valued at $19,799,000 after purchasing an additional 234,000 shares during the last quarter. Bank of America Corp DE boosted its stake in Qfin by 48.5% in the 1st quarter. Bank of America Corp DE now owns 1,987,457 shares of the company's stock worth $25,658,000 after purchasing an additional 649,492 shares in the last quarter. BRIGHT VALLEY CAPITAL Ltd raised its stake in shares of Qfin by 67.0% in the fourth quarter. BRIGHT VALLEY CAPITAL Ltd now owns 225,500 shares of the company's stock worth $4,345,000 after purchasing an additional 90,500 shares during the last quarter. Finally, Renaissance Technologies LLC purchased a new stake in shares of Qfin in the first quarter valued at approximately $5,032,000. 74.81% of the stock is currently owned by institutional investors.

Qfin News Summary

Here are the key news stories impacting Qfin this week:

• Positive Sentiment: Qfin declared a semi-annual dividend alongside its second-quarter and interim 2026 financial results, providing a potential income-supportive factor for shareholders. Qfin Holdings Announces Second Quarter and Interim 2026 Unaudited Financial Results and Declares Semi-Annual Dividend
• Neutral Sentiment: QFIN’s valuation remains low, with a reported price-to-earnings ratio of approximately 1.8, while profitability metrics remain substantial, including a 27.48% net margin and 20.85% return on equity. However, these valuation measures may reflect concerns about weakening earnings and growth.
• Negative Sentiment: Second-quarter adjusted earnings were $0.48 per share, well below the $0.96 analyst consensus and down sharply from $1.78 a year earlier. Revenue of $524.96 million also missed expectations of $562.45 million, reinforcing concerns about slowing business performance. Qfin Holdings Inc. Misses Q2 Earnings Estimates
• Negative Sentiment: Citigroup downgraded QFIN from Buy to Sell and assigned an $8 price target, implying additional downside from recent trading levels. The Fly analyst downgrade report
• Negative Sentiment: JPMorgan reaffirmed its Underweight rating but reduced its price target to $9 from $13.50, citing a more cautious outlook. Reports also indicate management expects further softness in the third quarter, increasing the likelihood of continued earnings pressure. Qfin stock slumps after Q2 earnings disappoint

Qfin Company Profile

360 DigiTech, Inc NASDAQ: QFIN is a China‐based fintech company that specializes in providing digital lending solutions to underserved consumer and small business markets. Leveraging proprietary credit assessment technologies and big data analytics, the company connects borrowers with a network of financial institutions and investors through its online platform. Its services encompass unsecured consumer loans, installment credit products, and working capital financing for micro and small enterprises.

The company's flagship platform offers an end‐to‐end digital lending experience, from application and credit evaluation to disbursement and repayment.

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