Lufax (NYSE:LU) Hits New 1-Year Low - Here's Why

Key Points

• Lufax shares hit a new 52-week low, falling to $0.9560 and last trading at $0.9770, below its $1.01 prior close. The stock remained below both its 50-day and 200-day moving averages.
• Analyst sentiment was mixed, with ratings ranging from sell to overweight; the consensus rating was Hold with an average price target of $1.70.
• Lufax missed quarterly expectations sharply, reporting a $0.04 loss per share versus the expected $1.08 and revenue of $916.61 million versus the $2.22 billion estimate. The company also planned a 1-for-10 reverse stock split effective October 23.

Lufax Holding Ltd. Sponsored ADR (NYSE:LU - Get Free Report) reached a new 52-week low during mid-day trading on Thursday. The stock traded as low as $0.9560 and last traded at $0.9770, with a volume of 4758580 shares trading hands. The stock had previously closed at $1.01.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Wall Street Zen downgraded shares of Lufax from a "hold" rating to a "sell" rating in a report on Saturday, August 22nd. JPMorgan Chase & Co. upgraded shares of Lufax from a "neutral" rating to an "overweight" rating and set a $2.00 price objective for the company in a report on Tuesday, July 28th. Zacks Research raised shares of Lufax from a "strong sell" rating to a "hold" rating in a research report on Monday, September 28th. Deutsche Bank Aktiengesellschaft set a $1.40 target price on shares of Lufax and gave the stock a "hold" rating in a report on Thursday, August 27th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Lufax in a research report on Thursday, August 13th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $1.70.

Lufax Stock Performance

The company has a 50-day moving average of $1.32 and a 200-day moving average of $1.52. The company has a market cap of $846.76 million, a PE ratio of -1.60 and a beta of 0.69. The company has a quick ratio of 1.72, a current ratio of 1.72 and a debt-to-equity ratio of 0.08.

Lufax's stock is scheduled to reverse split on the morning of Friday, October 23rd. The 1-10 reverse split was recently announced. The number of shares owned by shareholders will be adjusted after the market closes on Thursday, October 22nd.

Lufax (NYSE:LU - Get Free Report) last announced its earnings results on Friday, August 14th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing the consensus estimate of $1.08 by ($1.12). The firm had revenue of $916.61 million during the quarter, compared to analysts' expectations of $2.22 billion. As a group, analysts anticipate that Lufax Holding Ltd. Sponsored ADR will post -0.29 earnings per share for the current year.

Institutional Trading of Lufax

Large investors have recently added to or reduced their stakes in the stock. Fulton Bank N.A. purchased a new position in Lufax in the first quarter valued at about $27,000. Engineers Gate Manager LP purchased a new stake in shares of Lufax during the 2nd quarter worth approximately $60,000. Public Employees Retirement System of Ohio purchased a new stake in shares of Lufax during the 2nd quarter worth approximately $157,000. Ramsey Quantitative Systems bought a new stake in shares of Lufax in the 2nd quarter worth approximately $199,000. Finally, Bank of New York Mellon Corp raised its holdings in shares of Lufax by 4.7% in the 1st quarter. Bank of New York Mellon Corp now owns 318,365 shares of the company's stock worth $595,000 after purchasing an additional 14,224 shares during the period. Hedge funds and other institutional investors own 69.14% of the company's stock.

Lufax Company Profile

Lufax Holding Ltd. NYSE: LU is a China-based financial technology company that provides technology-enabled retail and small-business financial services. Its platform has connected borrowers, financial institutions and investors, with services focused primarily on consumer and small-business lending, wealth management and related financial products.

The company uses data analytics, digital platforms and risk-management technologies to support customer acquisition, credit assessment, loan servicing and financial-product distribution.

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