Lufax (NYSE:LU) Shares Down 4.7% - Should You Sell?

Key Points

• Lufax shares fell 4.7% to $8.08 in midday trading, on volume 71% below the average. The stock remains well below its 50-day and 200-day moving averages of $11.52 and $17.58, respectively.
• Analyst sentiment is mixed but averages to “Hold”, with a consensus price target of $17.00. Ratings range from Buy to Sell, including JPMorgan’s Overweight and Wall Street Zen’s Sell rating.
• Lufax reported a quarterly loss of $0.40 per share and revenue of $916.61 million, missing consensus estimates for both earnings and revenue. Analysts expect the company to post approximately -$2.90 EPS for the full year.

Lufax Holding Ltd. Sponsored ADR (NYSE:LU - Get Free Report) fell 4.7% during mid-day trading on Tuesday. The stock traded as low as $8.15 and last traded at $8.08. Approximately 39,429 shares changed hands during trading, a decline of 71% from the average daily volume of 136,593 shares. The stock had previously closed at $8.48.

Analyst Upgrades and Downgrades

A number of brokerages have commented on LU. Deutsche Bank Aktiengesellschaft set a $14.00 price objective on shares of Lufax and gave the stock a "hold" rating in a report on Thursday, August 27th. Zacks Research raised shares of Lufax from a "strong sell" rating to a "hold" rating in a research note on Monday, September 28th. Wall Street Zen lowered shares of Lufax from a "hold" rating to a "sell" rating in a research report on Saturday, August 22nd. JPMorgan Chase & Co. raised shares of Lufax from a "neutral" rating to an "overweight" rating and set a $20.00 price target on the stock in a research note on Tuesday, July 28th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Lufax in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $17.00.

Lufax Stock Performance

The stock has a market capitalization of $715.63 million, a price-to-earnings ratio of -13.55 and a beta of 0.69. 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 moving average of $11.52 and a 200 day moving average of $17.58.

Lufax (NYSE:LU - Get Free Report) last released its earnings results on Friday, August 14th. The company reported ($0.40) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $10.80 by ($11.20). The business had revenue of $916.61 million for the quarter, compared to the consensus estimate of $2.22 billion. On average, analysts expect that Lufax Holding Ltd. Sponsored ADR will post -2.90 EPS for the current year.

Institutional Investors Weigh In On Lufax

A number of institutional investors and hedge funds have recently modified their holdings of LU. Fulton Bank N.A. bought a new position in Lufax in the first quarter valued at approximately $27,000. Engineers Gate Manager LP acquired a new stake in Lufax during the 2nd quarter worth $60,000. Public Employees Retirement System of Ohio bought a new stake in shares of Lufax during the 2nd quarter valued at $157,000. Ramsey Quantitative Systems bought a new stake in shares of Lufax during the 2nd quarter valued at $199,000. Finally, Bank of New York Mellon Corp raised its position in shares of Lufax by 4.7% during the 1st quarter. Bank of New York Mellon Corp now owns 318,365 shares of the company's stock valued at $595,000 after acquiring an additional 14,224 shares during the last quarter. 69.14% of the stock is owned by institutional investors.

Lufax Company Profile

Lufax Holding Ltd. NYSE: LU is a China-based financial services technology company that operates digital platforms for retail and small-business finance. The company connects consumers and small-business owners with financial products and services through online channels and technology-enabled processes.

Lufax's business has historically included retail lending, wealth management and related financial services. Its platforms have provided access to consumer and small-business loans, investment products and other services offered in cooperation with financial institutions.

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