LexinFintech (NASDAQ:LX) Stock Price Down 9.1% - Here's Why

Key Points

• LexinFintech's stock price has dropped by 9.1%, trading at $6.32, a significant decline from its previous close of $6.96.
• Wall Street analysts have downgraded LexinFintech from a "strong-buy" to a "buy" rating, indicating potential caution among investors.
• The company's return on equity stands at 12.52%, with a reported quarterly revenue of $427.76 million.

LexinFintech Holdings Ltd. Sponsored ADR (NASDAQ:LX - Get Free Report)'s stock price dropped 9.1% during trading on Monday . The stock traded as low as $6.27 and last traded at $6.32. Approximately 2,710,163 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 3,433,964 shares. The stock had previously closed at $6.96.

Analyst Ratings Changes

Separately, Wall Street Zen lowered shares of LexinFintech from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 27th.

LexinFintech Stock Down 1.8%

The firm's fifty day moving average price is $7.19 and its 200-day moving average price is $7.95. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.85 and a quick ratio of 1.85. The firm has a market capitalization of $1.06 billion, a P/E ratio of 5.93 and a beta of 0.41.

LexinFintech (NASDAQ:LX - Get Free Report) last posted its quarterly earnings data on Wednesday, May 21st. The company reported $0.33 earnings per share (EPS) for the quarter. The business had revenue of $427.76 million during the quarter. LexinFintech had a net margin of 9.44% and a return on equity of 12.52%.

LexinFintech announced that its Board of Directors has authorized a share buyback program on Monday, July 21st that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

Institutional Trading of LexinFintech

Large investors have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. bought a new stake in LexinFintech during the fourth quarter worth approximately $61,000. Tower Research Capital LLC TRC boosted its stake in LexinFintech by 146.5% in the 4th quarter. Tower Research Capital LLC TRC now owns 12,160 shares of the company's stock worth $71,000 after purchasing an additional 7,227 shares during the period. Janney Montgomery Scott LLC acquired a new position in LexinFintech in the 2nd quarter worth approximately $75,000. Ballentine Partners LLC acquired a new position in LexinFintech in the 2nd quarter worth approximately $86,000. Finally, Aigen Investment Management LP acquired a new position in LexinFintech in the 1st quarter worth approximately $103,000.

About LexinFintech

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.