Luckin Coffee (OTCMKTS:LKNCY) Trading Down 0.1% - Time to Sell?

Key Points

• Luckin Coffee's stock price decreased by 0.1% on Thursday, trading at around $38.22 after reaching a low of $37.75.
• The stock was recently downgraded from a "buy" to a "hold" rating by Wall Street Zen as of August 2nd.
• In its latest earnings report, Luckin Coffee posted an EPS of $0.64, significantly exceeding the consensus estimate of $0.07, but falling short on revenue expectations with $1.72 billion compared to $1.82 billion projected by analysts.

Shares of Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY - Get Free Report) traded down 0.1% during trading on Thursday . The company traded as low as $37.75 and last traded at $38.22. 1,392,496 shares changed hands during trading, a decline of 41% from the average session volume of 2,349,074 shares. The stock had previously closed at $38.26.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen downgraded Luckin Coffee from a "buy" rating to a "hold" rating in a report on Friday.

Luckin Coffee Price Performance

The company has a market capitalization of $10.50 billion, a P/E ratio of 21.02 and a beta of -0.24. The company has a fifty day moving average price of $36.73 and a two-hundred day moving average price of $33.23.

Luckin Coffee (OTCMKTS:LKNCY - Get Free Report) last released its quarterly 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. The company had revenue of $1.72 billion for the quarter, compared to analysts' expectations of $1.82 billion. Luckin Coffee had a return on equity of 36.80% and a net margin of 9.59%.

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.