Lufax (NYSE:LU) Sets New 52-Week Low - Time to Sell?

Key Points

• Lufax shares hit a new 52-week low, trading as low as $0.9054 and last at $0.8820, well below the 50-day and 200-day moving averages of $1.27 and $1.50.
• Analyst views remain mixed, with a consensus “Hold” rating and an average price target of $1.70; ratings range from Sell to Overweight.
• The company is scheduled for a 1-for-10 reverse stock split on October 23, following quarterly results that missed consensus estimates for both earnings and revenue.

Lufax Holding Ltd. Sponsored ADR (NYSE:LU - Get Free Report)'s share price reached a new 52-week low during trading on Wednesday. The stock traded as low as $0.9054 and last traded at $0.8820, with a volume of 83,340 shares traded. The stock had previously closed at $0.9201.

Wall Street Analyst Weigh In

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

Lufax Price Performance

The stock's 50-day moving average is $1.27 and its 200-day moving average is $1.50. The firm has a market cap of $772.22 million, a P/E ratio of -1.46 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 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 the consensus estimate of $1.08 by ($1.12). The firm had revenue of $916.61 million for the quarter, compared to the consensus estimate of $2.22 billion. As a group, equities analysts anticipate that Lufax Holding Ltd. Sponsored ADR will post -0.29 EPS for the current fiscal year.

Institutional Trading of Lufax

A number of hedge funds have recently made changes to their positions in LU. Engineers Gate Manager LP purchased a new position in shares of Lufax during the second quarter worth approximately $60,000. Public Employees Retirement System of Ohio purchased a new stake in Lufax during the second quarter valued at $157,000. Ramsey Quantitative Systems purchased a new position in shares of Lufax during the 2nd quarter worth $199,000. Barometer Capital Management Inc. lifted its position in shares of Lufax by 7,538.6% during the 1st quarter. Barometer Capital Management Inc. now owns 534,700 shares of the company's stock valued at $1,000,000 after buying an additional 527,700 shares in the last quarter. Finally, California Public Employees Retirement System grew its position in shares of Lufax by 2.4% during the first quarter. California Public Employees Retirement System now owns 329,089 shares of the company's stock worth $615,000 after purchasing an additional 7,608 shares in the last quarter. 69.14% of the stock is owned by institutional investors and hedge funds.

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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