Wall Street Zen Upgrades LexinFintech (NASDAQ:LX) to Buy

Key Points

• LexinFintech has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, signaling increased confidence in the company's stock.
• The company reported a net margin of 11.50% and earnings per share (EPS) of $0.40, surpassing analysts' expectations of $0.20.
• Several large investors have significantly increased their stakes in LexinFintech, with Bank of America increasing its holdings by 115.9%.

LexinFintech (NASDAQ:LX - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

LexinFintech Stock Performance

Shares of NASDAQ LX traded down $0.20 during midday trading on Friday, hitting $5.58. The company's stock had a trading volume of 2,307,502 shares, compared to its average volume of 3,459,107. The stock has a fifty day moving average price of $6.38 and a 200 day moving average price of $7.51. LexinFintech has a one year low of $1.66 and a one year high of $11.64. The company has a current ratio of 1.89, a quick ratio of 1.88 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $938.07 million, a price-to-earnings ratio of 4.40 and a beta of 0.54.

LexinFintech (NASDAQ:LX - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.20. The company had revenue of $500.62 million for the quarter, compared to analyst estimates of $500.62 million. LexinFintech had a net margin of 11.50% and a return on equity of 14.67%.

LexinFintech announced that its Board of Directors has authorized a stock buyback plan on Monday, July 21st that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to buy shares of its stock through open market purchases. Shares buyback plans are generally a sign that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On LexinFintech

Institutional investors and hedge funds have recently modified their holdings of the stock. Ameriprise Financial Inc. purchased a new position in LexinFintech during the 4th quarter valued at about $61,000. Tower Research Capital LLC TRC lifted its holdings in shares of LexinFintech by 350.5% in the second quarter. Tower Research Capital LLC TRC now owns 9,969 shares of the company's stock worth $72,000 after buying an additional 7,756 shares in the last quarter. Janney Montgomery Scott LLC purchased a new position in shares of LexinFintech in the second quarter worth $75,000. Ballentine Partners LLC purchased a new position in shares of LexinFintech in the second quarter worth $86,000. Finally, Aigen Investment Management LP bought a new stake in LexinFintech in the first quarter worth $103,000.

LexinFintech Company Profile

LexinFintech Holdings Ltd., through its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending.