Qfin (NASDAQ:QFIN) Announces Earnings Results

Key Points

• Qfin beat earnings expectations, reporting quarterly EPS of $1.10 versus the $0.96 consensus estimate. Revenue of $524.96 million, however, fell short of analysts’ $562.45 million forecast.
• Shares rose to $11.53 after the results but remain near their 52-week low of $10.85, with the stock down substantially from its $32.69 high. Qfin trades at a notably low P/E ratio of 2.11.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $16.31; institutional investors own 74.81% of the company, while an insider recently increased their stake by 26.67%.

Qfin (NASDAQ:QFIN - Get Free Report) issued its earnings results on Tuesday. The company reported $1.10 EPS for the quarter, topping the consensus estimate of $0.96 by $0.14, FiscalAI reports. Qfin had a net margin of 27.48% and a return on equity of 20.85%. The company had revenue of $524.96 million for the quarter, compared to analyst estimates of $562.45 million.

Qfin Price Performance

Shares of Qfin stock traded up $0.54 on Tuesday, hitting $11.53. The company's stock had a trading volume of 9,317,879 shares, compared to its average volume of 1,529,241. The company has a market capitalization of $1.40 billion, a P/E ratio of 2.11 and a beta of 0.63. Qfin has a 52-week low of $10.85 and a 52-week high of $32.69. The firm has a fifty day moving average price of $13.72 and a 200-day moving average price of $13.95. The company has a quick ratio of 2.22, a current ratio of 2.22 and a debt-to-equity ratio of 0.03.

Insiders Place Their Bets

In other Qfin news, Director Xiaohuan Chen bought 4,000 shares of the business's stock in a transaction on Tuesday, June 9th. The stock was bought at an average price of $14.41 per share, for a total transaction of $57,640.00. Following the completion of the transaction, the director owned 19,000 shares in the company, valued at approximately $273,790. The trade was a 26.67% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 17.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Empowered Funds LLC acquired a new position in shares of Qfin during the 4th quarter worth approximately $202,000. XTX Topco Ltd grew its holdings in Qfin by 123.8% during the 4th quarter. XTX Topco Ltd now owns 37,511 shares of the company's stock valued at $723,000 after buying an additional 20,747 shares during the last quarter. Voloridge Investment Management LLC increased its position in Qfin by 124.1% during the fourth quarter. Voloridge Investment Management LLC now owns 1,163,392 shares of the company's stock worth $22,419,000 after buying an additional 644,171 shares in the last quarter. Quadrature Capital Ltd acquired a new position in shares of Qfin in the fourth quarter worth $466,000. Finally, Engineers Gate Manager LP acquired a new position in shares of Qfin in the fourth quarter worth $2,281,000. 74.81% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

QFIN has been the subject of several recent analyst reports. Deutsche Bank Aktiengesellschaft set a $13.00 price objective on shares of Qfin in a research note on Wednesday, August 12th. Weiss Ratings cut shares of Qfin from a "hold (c-)" rating to a "sell (d+)" rating in a report on Monday, July 13th. JPMorgan Chase & Co. reduced their price target on shares of Qfin from $14.50 to $13.50 and set a "neutral" rating for the company in a research report on Tuesday, August 11th. Zacks Research raised Qfin from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Bank of America restated a "neutral" rating and issued a $15.33 price target on shares of Qfin in a report on Wednesday, May 27th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $16.31.

About Qfin

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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