Luckin Coffee (OTCMKTS:LKNCY) Shares Gap Down - Time to Sell?

Key Points

• Luckin Coffee shares opened at $39.24 after closing at $41.30, indicating a significant gap down in the stock's price.
• Brokerages have varying perspectives on the stock, with a price target of $52.00 from Macquarie, while it was downgraded from "buy" to "hold" by Wall Street Zen.
• Luckin Coffee reported earnings of $0.64 per share, surpassing estimates, but total revenue of $1.72 billion fell short of the expected $1.82 billion.

Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY - Get Free Report) shares gapped down before the market opened on Friday . The stock had previously closed at $41.30, but opened at $39.24. Luckin Coffee shares last traded at $41.28, with a volume of 162,752 shares traded.

Analyst Ratings Changes

A number of brokerages recently commented on LKNCY. Macquarie set a $52.00 price objective on Luckin Coffee in a research note on Friday, September 5th. Dbs Bank raised Luckin Coffee to a "moderate buy" rating in a report on Thursday, August 14th. Finally, Wall Street Zen downgraded Luckin Coffee from a "buy" rating to a "hold" rating in a report on Friday, August 8th. One investment analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, Luckin Coffee presently has a consensus rating of "Buy" and a consensus price target of $52.00.

Luckin Coffee Stock Performance

The firm has a 50 day moving average of $38.26 and a 200-day moving average of $35.59. The stock has a market capitalization of $11.71 billion, a PE ratio of 23.45 and a beta of -0.41.

Luckin Coffee (OTCMKTS:LKNCY - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $0.64 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.57. Luckin Coffee had a return on equity of 36.80% and a net margin of 9.59%.The company had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.82 billion.

Luckin Coffee Company Profile

Luckin Coffee Inc offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks.

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