Lufax (NYSE:LU) Reaches New 1-Year Low - Here's What Happened

Key Points

• Lufax shares hit a new 52-week low of $1.19, below both their 50-day moving average of $1.40 and 200-day moving average of $1.70.
• Analyst sentiment is mixed but leans negative: Lufax has an average “Reduce” rating and a $1.70 price target, with ratings ranging from “overweight” to “strong sell.”
• The company reported a significant quarterly miss, posting a loss of $0.04 per share versus an expected $1.08 profit and revenue of $916.61 million versus a $2.22 billion forecast.

Lufax Holding Ltd. Sponsored ADR (NYSE:LU - Get Free Report) hit a new 52-week low during trading on Thursday . The stock traded as low as $1.19 and last traded at $1.1950, with a volume of 54408 shares. The stock had previously closed at $1.21.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the stock. Zacks Research downgraded shares of Lufax from a "hold" rating to a "strong sell" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. raised shares of Lufax from a "neutral" rating to an "overweight" rating and set a $2.00 target price for the company in a research note on Tuesday, July 28th. Deutsche Bank Aktiengesellschaft set a $1.40 price target on shares of Lufax and gave the stock a "hold" rating in a research report on Thursday, August 27th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Lufax in a research note on Thursday, August 13th. Finally, Wall Street Zen cut Lufax from a "hold" rating to a "sell" rating in a report on Saturday, August 22nd. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $1.70.

Lufax Price Performance

The stock's fifty day moving average price is $1.40 and its 200-day moving average price is $1.70. The firm has a market cap of $1.05 billion, a PE ratio of -1.99 and a beta of 0.76. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.72 and a quick ratio of 1.72.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Fulton Bank N.A. acquired a new stake in shares of Lufax in the first quarter valued at approximately $27,000. Scientech Research LLC acquired a new stake in Lufax during the third quarter worth about $46,000. Hudson Bay Capital Management LP acquired a new stake in Lufax during the second quarter worth about $58,000. Engineers Gate Manager LP purchased a new position in Lufax during the second quarter worth about $60,000. Finally, Headlands Technologies LLC raised its stake in Lufax by 245.1% during the second quarter. Headlands Technologies LLC now owns 26,928 shares of the company's stock worth $75,000 after purchasing an additional 19,126 shares during the period. 69.14% of the stock is currently owned by institutional investors and hedge funds.

Lufax Company Profile

Lufax NYSE: LU is a leading provider of online wealth management and personal finance services in China. Established in 2011 as a spin-off from Ping An Insurance (Group) Company of China, Lufax has developed a digital ecosystem designed to match retail and institutional investors with a diverse array of financial products. The company went public on the New York Stock Exchange in October 2020, underscoring its ambition to expand beyond its domestic market.

The firm's core business activities include peer-to-peer lending, consumer finance, supply chain and small-business lending, as well as online asset management.

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