Lufax (NYSE:LU) Reaches New 12-Month Low - Here's Why

Key Points

• Lufax shares hit a new 52-week low, falling as low as $0.8415 and trading well below their 50-day and 200-day moving averages.
• The company reported a significant earnings and revenue miss, posting a quarterly loss of $0.04 per share versus analysts’ expected $1.08 profit, while revenue reached $916.61 million against a $2.22 billion estimate.
• Lufax is scheduled for a 1-for-10 reverse stock split on October 23. Analysts maintain a consensus “Hold” rating with a $1.70 target price, though ratings range from Buy to Sell.

Lufax Holding Ltd. Sponsored ADR (NYSE:LU - Get Free Report)'s share price hit a new 52-week low on Tuesday. The company traded as low as $0.8415 and last traded at $0.8710, with a volume of 1,447,762 shares trading hands. The stock had previously closed at $0.8682.

Wall Street Analysts Forecast Growth

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

Lufax Price Performance

The company has a debt-to-equity ratio of 0.08, a current ratio of 1.72 and a quick ratio of 1.72. The stock has a 50 day simple moving average of $1.22 and a two-hundred day simple moving average of $1.47. The company has a market cap of $754.89 million, a price-to-earnings ratio of -1.43 and a beta of 0.69.

Shares of Lufax are scheduled to reverse split on Friday, October 23rd. The 1-10 reverse split was recently announced. The number of shares owned by shareholders will be adjusted after the closing bell on Thursday, October 22nd.

Lufax (NYSE:LU - Get Free Report) last issued its earnings results on Friday, August 14th. The company reported ($0.04) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.08 by ($1.12). The business had revenue of $916.61 million during the quarter, compared to analyst estimates of $2.22 billion. On average, equities research analysts predict that Lufax Holding Ltd. Sponsored ADR will post -0.29 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Lufax

Hedge funds have recently modified their holdings of the company. Barometer Capital Management Inc. increased its position in Lufax by 7,538.6% during the first quarter. Barometer Capital Management Inc. now owns 534,700 shares of the company's stock worth $1,000,000 after purchasing an additional 527,700 shares during the last quarter. California Public Employees Retirement System boosted its holdings in Lufax by 2.4% in the 1st quarter. California Public Employees Retirement System now owns 329,089 shares of the company's stock valued at $615,000 after purchasing an additional 7,608 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in Lufax by 4.7% in the 1st quarter. Bank of New York Mellon Corp now owns 318,365 shares of the company's stock valued at $595,000 after purchasing an additional 14,224 shares during the last quarter. Public Employees Retirement System of Ohio boosted its holdings in Lufax by 2.8% in the 1st quarter. Public Employees Retirement System of Ohio now owns 246,500 shares of the company's stock valued at $461,000 after purchasing an additional 6,600 shares during the last quarter. Finally, Ramsey Quantitative Systems purchased a new stake in shares of Lufax in the 2nd quarter valued at approximately $199,000. 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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