PPDAI Group (NYSE:FINV) Reaches New 52-Week Low - Should You Sell?

Key Points

• FINV shares fell 5.3% to a new 52-week low of $2.80, last trading near $2.91, below its 50-day and 200-day moving averages.
• Analyst sentiment is negative: Citigroup maintained a “neutral” rating but cut its price target to $4.10 from $8.10, while Weiss Ratings downgraded the stock to “sell.” The consensus rating is “Reduce.”
• Despite the stock decline, FinVolution reported quarterly EPS of $0.28 on $500.91 million in revenue, with a 14.49% net margin and low debt-to-equity of 0.07.

PPDAI Group Inc. Sponsored ADR (NYSE:FINV - Get Free Report)'s share price hit a new 52-week low on Wednesday. The company traded as low as $2.80 and last traded at $2.9060, with a volume of 2,295,532 shares. The stock had previously closed at $3.07.

Analysts Set New Price Targets

FINV has been the subject of a number of recent analyst reports. Citigroup reaffirmed a "neutral" rating and issued a $4.10 price objective (down from $8.10) on shares of PPDAI Group in a research report on Friday, August 28th. Weiss Ratings downgraded PPDAI Group from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 2nd. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, PPDAI Group presently has a consensus rating of "Reduce" and an average price target of $4.10.

PPDAI Group Stock Down 5.3%

The company has a debt-to-equity ratio of 0.07, a current ratio of 2.84 and a quick ratio of 2.84. The company has a market cap of $707.00 million, a price-to-earnings ratio of 2.74 and a beta of 0.33. The firm's 50-day moving average price is $3.48 and its 200-day moving average price is $4.39.

PPDAI Group (NYSE:FINV - Get Free Report) last announced its quarterly earnings results on Friday, August 14th. The company reported $0.28 earnings per share (EPS) for the quarter. PPDAI Group had a return on equity of 12.31% and a net margin of 14.49%. The firm had revenue of $500.91 million during the quarter.

Institutional Trading of PPDAI Group

An institutional investor recently bought a new stake in PPDAI Group stock. Squarepoint Ops LLC bought a new position in shares of PPDAI Group Inc. Sponsored ADR (NYSE:FINV - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 24,880 shares of the company's stock, valued at approximately $119,000. Institutional investors own 31.15% of the company's stock.

About PPDAI Group

PPDAI Group Inc, now known as FinVolution Group, is a Chinese fintech company that operates an online consumer finance platform. The company uses technology, data analytics and risk-management tools to connect individual borrowers with funding sources and facilitate unsecured consumer loans.

Its services generally include borrower acquisition, credit assessment, loan matching and facilitation, payment processing, and post-loan management. FinVolution serves consumers who may have limited access to traditional banking services and works with institutional funding partners and other financial institutions through its technology platform.

Founded in 2007, the company was originally known as PPDAI and later adopted the FinVolution name as part of its broader technology and international strategy.

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