Qfin (NASDAQ:QFIN) Shares Gap Down - Time to Sell?

Key Points

• Qfin shares opened sharply lower, falling from a prior close of $8.84 to $8.38 and last trading near $8.51.
• Analyst sentiment has deteriorated: Citigroup downgraded the stock to “sell,” Morgan Stanley cut it to “equal weight,” and Zacks Research rated it “strong sell.” The stock has an average “Reduce” rating and a $12.29 price target.
• Despite reporting $0.55 quarterly EPS, $524.96 million in revenue, and a 22.23% net margin, Qfin’s shares remain well below their 50-day and 200-day moving averages; institutional investors own 74.81% of the stock.

Qfin Holdings Inc. - Sponsored ADR (NASDAQ:QFIN - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $8.84, but opened at $8.38. Qfin shares last traded at $8.5050, with a volume of 161,189 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on QFIN shares. Citigroup downgraded Qfin from a "buy" rating to a "sell" rating and set a $8.00 target price on the stock. in a research report on Wednesday, August 26th. Deutsche Bank Aktiengesellschaft set a $13.00 price objective on Qfin in a research report on Wednesday, August 12th. Bank of America reissued a "neutral" rating and set a $15.33 price objective on shares of Qfin in a report on Wednesday, May 27th. Morgan Stanley lowered Qfin from an "overweight" rating to an "equal weight" rating and set a $13.00 target price for the company. in a research note on Wednesday, August 26th. Finally, Zacks Research cut Qfin from a "hold" rating to a "strong sell" rating in a research report on Friday, August 28th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average price target of $12.29.

Qfin Price Performance

The company has a quick ratio of 2.17, a current ratio of 2.17 and a debt-to-equity ratio of 0.03. The stock has a market cap of $1.04 billion, a price-to-earnings ratio of 2.05 and a beta of 0.57. The company's 50-day moving average is $12.36 and its 200-day moving average is $13.44.

Qfin (NASDAQ:QFIN - Get Free Report) last released its quarterly earnings data on Friday, August 14th. The company reported $0.55 earnings per share for the quarter. Qfin had a return on equity of 15.23% and a net margin of 22.23%.The company had revenue of $524.96 million for the quarter. Equities research analysts expect that Qfin Holdings Inc. - Sponsored ADR will post 2.85 earnings per share for the current fiscal year.

Qfin Cuts Dividend

The business also recently declared a dividend, which will be paid on Thursday, October 1st. Shareholders of record on Wednesday, September 9th will be given a $0.46 dividend. This represents a yield of 1,079.0%. The ex-dividend date is Wednesday, September 9th. Qfin's dividend payout ratio is 21.63%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Qfin in the 1st quarter worth about $29,000. SBI Securities Co. Ltd. lifted its holdings in Qfin by 6,796.4% during the 4th quarter. SBI Securities Co. Ltd. now owns 1,931 shares of the company's stock valued at $37,000 after purchasing an additional 1,903 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its position in Qfin by 415.9% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 2,636 shares of the company's stock valued at $51,000 after buying an additional 2,125 shares in the last quarter. Parallel Advisors LLC boosted its position in Qfin by 24.1% in the fourth quarter. Parallel Advisors LLC now owns 3,373 shares of the company's stock valued at $65,000 after buying an additional 656 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its stake in Qfin by 23.4% during the fourth quarter. PNC Financial Services Group Inc. now owns 5,358 shares of the company's stock worth $103,000 after buying an additional 1,016 shares during the last quarter. 74.81% of the stock is owned by institutional investors.

Qfin Company Profile

360 DigiTech, Inc NASDAQ: QFIN is a China‐based fintech company that specializes in providing digital lending solutions to underserved consumer and small business markets. Leveraging proprietary credit assessment technologies and big data analytics, the company connects borrowers with a network of financial institutions and investors through its online platform. Its services encompass unsecured consumer loans, installment credit products, and working capital financing for micro and small enterprises.

The company's flagship platform offers an end‐to‐end digital lending experience, from application and credit evaluation to disbursement and repayment.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.