PPDAI Group (NYSE:FINV) Shares Down 3.4% - Should You Sell?

Key Points

• FINV shares fell 3.4% to about $2.97, with trading volume below its average. The stock is trading below both its 50-day and 200-day moving averages.
• Analyst sentiment is cautious: Weiss Ratings downgraded the stock to “sell,” while Citigroup maintained a “neutral” rating and cut its price target to $4.10. MarketBeat reports an overall “Reduce” consensus rating.
• FinVolution reported $0.28 in quarterly EPS on $500.91 million in revenue, with a 14.49% net margin and 12.31% return on equity. Institutional investors own 31.15% of the company, including a new 24,880-share position from Squarepoint Ops.

PPDAI Group Inc. Sponsored ADR (NYSE:FINV - Get Free Report) shares dropped 3.4% on Tuesday. The stock traded as low as $2.98 and last traded at $2.9650. Approximately 813,082 shares were traded during trading, a decline of 20% from the average daily volume of 1,013,175 shares. The stock had previously closed at $3.07.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on FINV. Weiss Ratings downgraded shares of PPDAI Group from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday, October 2nd. Citigroup reissued a "neutral" rating and issued a $4.10 price objective (down from $8.10) on shares of PPDAI Group in a report on Friday, August 28th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, PPDAI Group currently has an average rating of "Reduce" and an average target price of $4.10.

PPDAI Group Stock Performance

The company has a current ratio of 2.84, a quick ratio of 2.84 and a debt-to-equity ratio of 0.07. The firm's fifty day moving average price is $3.51 and its 200 day moving average price is $4.40. The stock has a market capitalization of $692.16 million, a price-to-earnings ratio of 2.68 and a beta of 0.33.

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

Institutional Inflows and Outflows

A hedge fund recently bought a new position in PPDAI Group stock. Squarepoint Ops LLC bought a new stake in shares of PPDAI Group Inc. Sponsored ADR (NYSE:FINV - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 24,880 shares of the company's stock, valued at approximately $119,000. 31.15% of the stock is currently owned by institutional investors.

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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