Qfin (NASDAQ:QFIN) Reaches New 12-Month Low - Time to Sell?

Key Points

• QFIN hit a new 52-week low, trading as low as $5.23, while its 50-day and 200-day moving averages stood at $7.91 and $11.80, respectively.
• Analyst sentiment has deteriorated: JPMorgan, Zacks, Citigroup and Morgan Stanley recently downgraded the stock, leaving it with a consensus “Reduce” rating despite a $12.29 average price target.
• Qfin reported $0.55 in quarterly EPS on $524.96 million in revenue, but cut its dividend from $0.78 to $0.46; insiders have also sold 657,550 shares over the past 90 days.

Qfin Holdings Inc. - Sponsored ADR (NASDAQ:QFIN - Get Free Report) shares reached a new 52-week low during trading on Monday. The stock traded as low as $5.23 and last traded at $5.2850, with a volume of 118,494 shares traded. The stock had previously closed at $5.26.

Analysts Set New Price Targets

QFIN has been the topic of a number of research reports. JPMorgan Chase & Co. lowered shares of Qfin from a "neutral" rating to an "underweight" rating and lowered their target price for the stock from $13.50 to $9.00 in a research report on Wednesday, August 26th. Zacks Research downgraded Qfin from a "hold" rating to a "strong sell" rating in a research note on Friday, August 28th. Jefferies Financial Group restated a "buy" rating and issued a $15.40 price target on shares of Qfin in a research report on Wednesday, August 26th. Citigroup lowered shares of Qfin from a "buy" rating to a "sell" rating and set a $8.00 price objective on the stock. in a research report on Wednesday, August 26th. Finally, Morgan Stanley cut shares of Qfin from an "overweight" rating to an "equal weight" rating and set a $13.00 price objective on the stock. in a research note on Wednesday, August 26th. One equities research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $12.29.

Qfin Trading Up 3.3%

The firm has a market cap of $661.71 million, a price-to-earnings ratio of 1.30 and a beta of 0.55. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.17 and a quick ratio of 2.17. The business's 50-day moving average price is $7.91 and its two-hundred day moving average price is $11.80.

Qfin (NASDAQ:QFIN - Get Free Report) last announced its quarterly earnings results on Friday, August 14th. The company reported $0.55 earnings per share for the quarter. The company had revenue of $524.96 million for the quarter. Qfin had a net margin of 22.23% and a return on equity of 15.23%. Equities analysts expect that Qfin Holdings Inc. - Sponsored ADR will post 2.43 earnings per share for the current year.

Qfin Cuts Dividend

The firm also recently disclosed a dividend, which was paid on Thursday, October 1st. Investors of record on Wednesday, September 9th were paid a $0.46 dividend. The ex-dividend date of this dividend was Wednesday, September 9th. This represents a yield of 1,070.0%. This is a decrease from Qfin's previous dividend of $0.78. Qfin's dividend payout ratio (DPR) is currently 21.63%.

Insider Transactions at Qfin

In other Qfin news, Director Andrew Yan sold 326,700 shares of the stock in a transaction on Friday, September 25th. The shares were sold at an average price of $7.36, for a total transaction of $2,404,512.00. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Insiders have sold 657,550 shares of company stock valued at $4,889,121 in the last ninety days. 17.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. DGS Capital Management LLC lifted its holdings in Qfin by 8.8% during the first quarter. DGS Capital Management LLC now owns 10,906 shares of the company's stock worth $141,000 after buying an additional 878 shares during the period. SBI Securities Co. Ltd. grew its holdings in Qfin by 73.7% in the third quarter. SBI Securities Co. Ltd. now owns 5,492 shares of the company's stock valued at $37,000 after purchasing an additional 2,330 shares during the period. APEIRON CAPITAL Ltd lifted its stake in Qfin by 0.4% in the 1st quarter. APEIRON CAPITAL Ltd now owns 1,032,055 shares of the company's stock valued at $13,324,000 after buying an additional 4,600 shares in the last quarter. Apollon Wealth Management LLC acquired a new stake in Qfin in the 3rd quarter valued at about $69,000. Finally, QRG Capital Management Inc. acquired a new stake in Qfin during the first quarter worth about $136,000. 74.81% of the stock is owned by institutional investors.

Qfin Company Profile

Qifu Technology, Inc NASDAQ: QFIN, formerly known as 360 DigiTech, Inc, is a China-based financial technology company. It operates a technology platform that connects individual borrowers with financial institution partners and supports the origination, underwriting, servicing and management of consumer credit products.

The company uses data analytics, artificial intelligence and other digital tools to assess credit risk and improve lending efficiency. Its platform supports products and services designed to provide personal loans and other consumer financing options, primarily through online and mobile channels.

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