PPDAI Group (NYSE:FINV) Stock Price Down 5.4% - Time to Sell?

Key Points

• PPDAI Group shares fell 5.4% to about $3.25, with trading volume 38% below the average. The stock remains below 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. The consensus rating is “Reduce.”
• The company reported quarterly EPS of $0.28 on $500.91 million in revenue, with a 14.49% net margin and low debt-to-equity ratio of 0.07. Institutional investors own 31.15% of the shares, with several funds recently increasing their positions.

Shares of PPDAI Group Inc. Sponsored ADR (NYSE:FINV - Get Free Report) were down 5.4% during trading on Thursday . The stock traded as low as $3.26 and last traded at $3.2540. 634,701 shares traded hands during mid-day trading, a decline of 38% from the average daily volume of 1,016,787 shares. The stock had previously closed at $3.44.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on FINV. Weiss Ratings downgraded shares of PPDAI Group from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, August 28th. Citigroup reissued a "neutral" rating and issued a $4.10 price objective (down from $8.10) on shares of PPDAI Group in a research note on Friday, August 28th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus target price of $4.10.

PPDAI Group Trading Down 4.8%

The firm has a 50-day moving average of $4.57 and a two-hundred day moving average of $4.92. The firm has a market capitalization of $796.77 million, a P/E ratio of 3.09 and a beta of 0.34. The company has a current ratio of 2.84, a quick ratio of 3.36 and a debt-to-equity ratio of 0.07.

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

Institutional Investors Weigh In On PPDAI Group

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Millennium Management LLC lifted its stake in 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 purchasing an additional 894,566 shares during the last quarter. Abacus Wealth Partners LLC bought a new stake in shares of PPDAI Group during the fourth quarter worth $221,000. Royal Bank of Canada increased its holdings in shares of PPDAI Group by 114.5% during the first quarter. Royal Bank of Canada now owns 59,266 shares of the company's stock worth $571,000 after buying an additional 31,641 shares in the last quarter. FourThought Financial Partners LLC acquired a new position in shares of PPDAI Group during the fourth quarter worth $120,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted 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 during the last quarter. 31.15% of the stock is owned by institutional investors.

About PPDAI Group

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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