PPDAI Group (NYSE:FINV) Shares Gap Down - Here's What Happened

Key Points

• PPDAI Group shares fell 14.7%, opening at $3.88 after previously closing at $4.02 and later trading at $3.57 on volume of 609,882 shares.
• Analysts remain cautious: Weiss Ratings downgraded the stock’s “Hold” outlook, while Citigroup reiterated a “Neutral” rating with a $4.10 price target. The consensus rating is “Hold.”
• The company exceeded quarterly expectations, reporting $0.26 in EPS versus a $0.23 estimate and revenue of $465.58 million versus $438.70 million expected; institutional investors own 31.15% of the stock.

PPDAI Group Inc. Sponsored ADR (NYSE:FINV - Get Free Report) gapped down prior to trading on Friday . The stock had previously closed at $4.02, but opened at $3.88. PPDAI Group shares last traded at $3.57, with a volume of 609,882 shares trading hands.

Analyst Ratings Changes

Several research analysts have weighed in on FINV shares. Weiss Ratings lowered PPDAI Group from a "hold (c)" rating to a "hold (c-)" rating in a research report on Thursday, July 9th. Citigroup reissued a "neutral" rating and issued a $4.10 price target on shares of PPDAI Group in a research note on Friday. Two research analysts have rated the stock with a Hold rating, According to data from MarketBeat, PPDAI Group currently has a consensus rating of "Hold" and an average price target of $4.10.

PPDAI Group Trading Down 14.7%

The company has a market cap of $834.48 million, a price-to-earnings ratio of 2.88 and a beta of 0.36. The company's 50 day moving average price is $4.68 and its 200 day moving average price is $4.98. The company has a debt-to-equity ratio of 0.07, a quick ratio of 3.36 and a current ratio of 3.36.

PPDAI Group (NYSE:FINV - Get Free Report) last released its quarterly earnings data on Monday, May 25th. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.23 by $0.03. The business had revenue of $465.58 million during the quarter, compared to analyst estimates of $438.70 million. PPDAI Group had a net margin of 16.58% and a return on equity of 14.22%.

Institutional Trading of PPDAI Group

A number of institutional investors and hedge funds have recently made changes to their positions in FINV. Royal Bank of Canada boosted its stake in shares of PPDAI Group by 114.5% during the 1st quarter. Royal Bank of Canada now owns 59,266 shares of the company's stock worth $571,000 after acquiring an additional 31,641 shares in the last quarter. Millennium Management LLC raised its stake in shares of PPDAI Group by 573.9% in the 1st quarter. Millennium Management LLC now owns 1,050,439 shares of the company's stock valued at $10,116,000 after acquiring an additional 894,566 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of PPDAI Group by 2.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 475,988 shares of the company's stock valued at $4,584,000 after acquiring an additional 12,000 shares in the last quarter. Farther Finance Advisors LLC lifted its holdings in PPDAI Group by 57.7% in the 4th quarter. Farther Finance Advisors LLC now owns 5,695 shares of the company's stock worth $30,000 after purchasing an additional 2,083 shares during the last quarter. Finally, Abacus Wealth Partners LLC acquired a new stake in PPDAI Group in the 4th quarter worth approximately $221,000. Institutional investors and hedge funds own 31.15% of the company's stock.

PPDAI Group Company Profile

PPDAI Group Inc operates an online consumer finance marketplace that connects individual and institutional investors with personal and small-business borrowers. Through its digital platform, the company facilitates unsecured consumer loans, auto refinancing loans and small-business financing by leveraging proprietary credit assessment tools and big data analytics. Investors gain exposure to a diversified portfolio of retail credit assets, while borrowers benefit from streamlined application processes and competitive financing rates.

At the core of PPDAI's offering is a multi-layered risk management framework that combines automated credit scoring, manual underwriting oversight and third-party data verification.

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