Luckin Coffee (OTCMKTS:LKNCY) Stock Price Down 7.8% - Here's Why

Key Points

• Luckin Coffee shares fell about 7.8% intraday to roughly $31.80 (prior close $34.50) with 1.69M shares trading, about 23% below average session volume.
• Analysts maintain a Moderate Buy consensus with a consensus price target of $52 (Macquarie set $52); current metrics include a $9.02B market cap and P/E of 18.07.
• In the latest quarter Luckin reported $0.64 EPS (missed by $0.01) but topped revenue estimates with $2.15B, and showed an 8.45% net margin and 33.69% return on equity.

Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY - Get Free Report)'s stock price traded down 7.8% during mid-day trading on Tuesday . The stock traded as low as $31.65 and last traded at $31.80. 1,686,827 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 2,189,006 shares. The stock had previously closed at $34.50.

Wall Street Analyst Weigh In

Several research analysts have recently commented on LKNCY shares. Macquarie set a $52.00 target price on Luckin Coffee in a research note on Friday, September 5th. Zacks Research raised shares of Luckin Coffee to a "hold" rating in a research report on Thursday, November 20th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $52.00.

Luckin Coffee Trading Down 7.8%

The stock has a market cap of $9.02 billion, a P/E ratio of 18.07 and a beta of -0.28. The firm has a 50-day simple moving average of $38.38 and a two-hundred day simple moving average of $37.62.

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