PPDAI Group (NYSE:FINV) Hits New 1-Year Low - Here's Why

Key Points

• PPDAI Group shares hit a new 52-week low, trading as low as $4.31 and closing near $4.3050, below its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious: Weiss Ratings downgraded the stock from “hold (c)” to “hold (c-),” while the sole tracked analyst maintains a Hold rating.
• The company’s latest quarterly results exceeded expectations, with earnings of $0.26 per share versus $0.23 forecast and revenue of $465.58 million versus $438.70 million expected; however, a director sold 80% of their holdings in a recent transaction.

PPDAI Group Inc. Sponsored ADR (NYSE:FINV - Get Free Report) shares hit a new 52-week low on Monday . The company traded as low as $4.31 and last traded at $4.3050, with a volume of 152658 shares traded. The stock had previously closed at $4.38.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut PPDAI Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, July 9th. One research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company currently has an average rating of "Hold".

PPDAI Group Price Performance

The stock has a market capitalization of $1.04 billion, a PE ratio of 3.60 and a beta of 0.36. The company's 50 day simple moving average is $4.78 and its 200 day simple moving average is $5.03. The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.07.

PPDAI Group (NYSE:FINV - Get Free Report) last released its earnings results on Monday, May 25th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.03. PPDAI Group had a return on equity of 14.22% and a net margin of 16.58%.The firm had revenue of $465.58 million for the quarter, compared to the consensus estimate of $438.70 million.

Insiders Place Their Bets

In other PPDAI Group news, Director Bing Xiang sold 75,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $1.07, for a total transaction of $80,250.00. Following the transaction, the director owned 18,750 shares of the company's stock, valued at $20,062.50. This trade represents a 80.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 44.00% of the stock is currently owned by corporate insiders.

Institutional Trading of PPDAI Group

Several institutional investors have recently made changes to their positions in the stock. Farther Finance Advisors LLC raised its position in shares of PPDAI Group by 57.7% in the 4th quarter. Farther Finance Advisors LLC now owns 5,695 shares of the company's stock worth $30,000 after buying an additional 2,083 shares during the period. Kingswood Wealth Advisors LLC grew its holdings in shares of PPDAI Group by 28.5% during the 4th quarter. Kingswood Wealth Advisors LLC now owns 16,462 shares of the company's stock worth $86,000 after purchasing an additional 3,655 shares during the period. FourThought Financial Partners LLC purchased a new stake in PPDAI Group during the fourth quarter worth approximately $120,000. Abacus Wealth Partners LLC acquired a new stake in shares of PPDAI Group in the fourth quarter worth $221,000. Finally, Royal Bank of Canada lifted its holdings in shares of PPDAI Group by 114.5% during the 1st quarter. Royal Bank of Canada now owns 59,266 shares of the company's stock valued at $571,000 after acquiring an additional 31,641 shares in the last quarter. 31.15% of the stock is owned by hedge funds and other institutional investors.

About PPDAI Group

PPDAI Group Inc operates an online consumer finance marketplace that connects individual and institutional investors with personal and small-business borrowers. Through its digital platform, the company facilitates unsecured consumer loans, auto refinancing loans and small-business financing by leveraging proprietary credit assessment tools and big data analytics. Investors gain exposure to a diversified portfolio of retail credit assets, while borrowers benefit from streamlined application processes and competitive financing rates.

At the core of PPDAI's offering is a multi-layered risk management framework that combines automated credit scoring, manual underwriting oversight and third-party data verification.

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