Qfin (NASDAQ:QFIN) Sets New 52-Week Low - Here's Why

Key Points

• Qfin shares hit a new 52-week low of $5.54, well below their 50-day and 200-day moving averages of $8.63 and $12.06, respectively.
• Analyst sentiment has deteriorated: Qfin holds an average “Reduce” rating, with four Sell ratings and an average price target of $12.29.
• The company cut its dividend to $0.46 from $0.78, while an insider sold 330,000 shares; despite these concerns, Qfin reported $0.55 in quarterly EPS and $524.96 million in revenue.

Qfin Holdings Inc. - Sponsored ADR (NASDAQ:QFIN - Get Free Report)'s stock price reached a new 52-week low on Monday. The company traded as low as $5.54 and last traded at $5.5460, with a volume of 853,268 shares. The stock had previously closed at $5.67.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on QFIN shares. Jefferies Financial Group restated a "buy" rating and set a $15.40 target price on shares of Qfin in a research report on Wednesday, August 26th. Deutsche Bank Aktiengesellschaft set a $13.00 price target on shares of Qfin in a report on Wednesday, August 12th. Citigroup downgraded Qfin from a "buy" rating to a "sell" rating and set a $8.00 price target on the stock. in a research report on Wednesday, August 26th. JPMorgan Chase & Co. lowered Qfin from a "neutral" rating to an "underweight" rating and reduced their price objective for the company from $13.50 to $9.00 in a research note on Wednesday, August 26th. Finally, Zacks Research lowered Qfin from a "hold" rating to a "strong sell" rating in a research note on Friday, August 28th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Qfin has an average rating of "Reduce" and an average target price of $12.29.

Qfin Price Performance

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 stock has a fifty day simple moving average of $8.63 and a 200-day simple moving average of $12.06. The company has a market capitalization of $673.89 million, a price-to-earnings ratio of 1.33 and a beta of 0.55.

Qfin (NASDAQ:QFIN - Get Free Report) last issued its quarterly earnings data on Friday, August 14th. The company reported $0.55 EPS for the quarter. The business 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%. On average, equities research analysts anticipate that Qfin Holdings Inc. - Sponsored ADR will post 2.43 EPS for the current year.

Qfin Cuts Dividend

The company also recently disclosed a dividend, which was paid on Thursday, October 1st. Shareholders of record on Wednesday, September 9th were issued a $0.46 dividend. The ex-dividend date of this dividend was Wednesday, September 9th. This is a negative change from Qfin's previous dividend of $0.78. This represents a yield of 1,070.0%. Qfin's dividend payout ratio is presently 21.63%.

Insider Buying and Selling at Qfin

In other Qfin news, Director Andrew Yan sold 330,000 shares of the company's stock in a transaction dated Thursday, September 24th. The shares were sold at an average price of $7.52, for a total value of $2,481,600.00. Following the completion of the transaction, the director owned 326,700 shares in the company, valued at approximately $2,456,784. This represents a 50.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have sold a total of 657,550 shares of company stock valued at $4,889,121 in the last three months. Corporate insiders own 17.10% of the company's stock.

Hedge Funds Weigh In On Qfin

Several institutional investors and hedge funds have recently modified their holdings of QFIN. DGS Capital Management LLC increased its holdings in Qfin by 8.8% in the 1st quarter. DGS Capital Management LLC now owns 10,906 shares of the company's stock worth $141,000 after acquiring an additional 878 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its position in Qfin by 813.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,669 shares of the company's stock worth $90,000 after acquiring an additional 4,158 shares during the period. APEIRON CAPITAL Ltd lifted its holdings in Qfin by 0.4% during the first quarter. APEIRON CAPITAL Ltd now owns 1,032,055 shares of the company's stock valued at $13,324,000 after purchasing an additional 4,600 shares in the last quarter. QRG Capital Management Inc. purchased a new position in Qfin during the first quarter valued at $136,000. Finally, Ramsey Quantitative Systems acquired a new stake in shares of Qfin in the second quarter valued at about $207,000. Hedge funds and other institutional investors own 74.81% of the company's stock.

Qfin Company Profile

Qifu Technology, Inc, formerly known as 360 DigiTech, Inc and 360 Finance, is a China-based financial technology company. The company operates a technology platform that connects consumers seeking credit with financial institutions and other lending partners.

Qifu provides online consumer finance services, including credit assessment, loan facilitation, risk management, and post-loan servicing. Its technology uses data analysis, artificial intelligence, and automated tools to support borrower acquisition, underwriting, transaction processing, and credit monitoring.

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