Luckin Coffee (OTCMKTS:LKNCY) Sees Strong Trading Volume - Here's Why

Key Points

• Unusually strong trading volume: About 2,047,068 shares traded Tuesday, a 96% increase from the prior session, with the stock last trading near $34.44 (down roughly 2.9%).
• Analyst outlook: MarketBeat shows a consensus rating of Moderate Buy and a consensus target price of $52.00, while Zacks Research recently upgraded Luckin to a "Hold" (coverage: one Buy, one Hold).
• Recent results and valuation: Q earnings were $0.64 EPS (missed by $0.01) but revenue beat at $2.15 billion; the company has a market cap near $9.57 billion and a PE of 19.18.

Shares of Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 2,047,068 shares were traded during trading, an increase of 96% from the previous session's volume of 1,043,080 shares.The stock last traded at $34.44 and had previously closed at $34.76.

Analysts Set New Price Targets

Separately, Zacks Research upgraded Luckin Coffee to a "hold" rating in a research report on Thursday, November 20th. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $52.00.

Luckin Coffee Stock Down 2.9%

The company's fifty day simple moving average is $36.46 and its 200 day simple moving average is $37.56. The firm has a market capitalization of $9.57 billion, a PE ratio of 19.18 and a beta of -0.46.

Luckin Coffee (OTCMKTS:LKNCY - Get Free Report) last announced its earnings results on Monday, November 17th. The company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.65 by ($0.01). Luckin Coffee had a return on equity of 33.69% and a net margin of 8.45%.The firm had revenue of $2.15 billion during the quarter, compared to the consensus estimate of $1.94 billion.

Luckin Coffee Company Profile

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.

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