Yirendai Ltd. (NYSE:YRD) Sees Significant Drop in Short Interest

Key Points

• Short interest fell 39.2% to 112,299 shares as of August 14, representing 0.2% of Yirendai’s outstanding shares and 1.7 days to cover.
• Institutional ownership remains limited at 1.99%, though several investors increased their positions, including XTX Topco, GSA Capital Partners, and Dimensional Fund Advisors.
• Yirendai faces weak operating and market conditions: analysts maintain a “Sell” rating, the stock traded near $1.01 versus a 52-week high of $6.79, and its latest quarterly results missed estimates on both earnings and revenue.

Yirendai Ltd. (NYSE:YRD - Get Free Report) saw a large decrease in short interest in August. As of August 14th, there was short interest totaling 112,299 shares, a decrease of 39.2% from the July 30th total of 184,848 shares. Currently, 0.2% of the company's shares are sold short. Based on an average daily trading volume, of 64,206 shares, the days-to-cover ratio is currently 1.7 days.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. GSA Capital Partners LLP grew its position in shares of Yirendai by 10.3% in the second quarter. GSA Capital Partners LLP now owns 100,741 shares of the technology company's stock valued at $84,000 after purchasing an additional 9,391 shares during the period. Ramsey Quantitative Systems acquired a new stake in Yirendai in the 2nd quarter worth about $110,000. Dimensional Fund Advisors LP boosted its stake in Yirendai by 3.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,116,961 shares of the technology company's stock worth $1,917,000 after buying an additional 33,490 shares during the last quarter. XTX Topco Ltd grew its holdings in Yirendai by 52.8% in the 4th quarter. XTX Topco Ltd now owns 47,898 shares of the technology company's stock valued at $177,000 after buying an additional 16,554 shares during the period. Finally, Verdad Advisers LP acquired a new position in shares of Yirendai during the 4th quarter valued at about $195,000. Hedge funds and other institutional investors own 1.99% of the company's stock.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a "sell (d)" rating on shares of Yirendai in a research note on Wednesday, August 19th. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat, the company currently has an average rating of "Sell".

Yirendai Stock Performance

YRD stock traded down $0.04 during midday trading on Monday, hitting $1.01. 6,239 shares of the stock were exchanged, compared to its average volume of 456,426. The stock's 50-day moving average price is $1.18 and its 200-day moving average price is $1.91. Yirendai has a fifty-two week low of $0.82 and a fifty-two week high of $6.79. The stock has a market cap of $88.10 million, a price-to-earnings ratio of -0.90 and a beta of 1.13.

Yirendai (NYSE:YRD - Get Free Report) last released its quarterly earnings results on Friday, June 26th. The technology company reported ($0.82) earnings per share for the quarter, missing analysts' consensus estimates of $0.38 by ($1.20). The company had revenue of $132.73 million during the quarter, compared to analyst estimates of $237.43 million. Yirendai had a negative return on equity of 7.58% and a negative net margin of 14.35%.

Yirendai declared that its Board of Directors has initiated a stock repurchase plan on Thursday, July 2nd that permits the company to buyback $0.00 in outstanding shares. This buyback authorization permits the technology company to reacquire shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Yirendai Company Profile

Yirendai Ltd is a leading fintech credit marketplace in China, offering consumer financing solutions through a digital platform. As a subsidiary of CreditEase, one of the country’s earliest peer-to-peer lending pioneers, Yirendai facilitates connections between individual borrowers and institutional or retail investors. The company’s integrated platform handles borrower screening, credit assessment, risk management and loan servicing to deliver a streamlined, transparent lending experience.

The company provides unsecured personal loans for purposes such as debt consolidation, home improvement and small business investment.

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