Qfin (NASDAQ:QFIN) Shares Gap Down on Disappointing Earnings

Key Points

• Qfin Holdings Inc.'s shares experienced a significant decrease, opening at $31.50 after previously closing at $33.30, following a weak earnings report that showed an EPS of $1.78, below the expected $1.79.
• The company's revenue for the quarter was reported at $728 million, significantly lower than analysts' predictions of $4.68 billion.
• Notably, institutional ownership of Qfin stock increased, with major investors like Bank of New York Mellon Corp raising their positions by 6.1% during the first quarter.

Shares of Qfin Holdings Inc. - Sponsored ADR (NASDAQ:QFIN - Get Free Report) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $33.30, but opened at $31.50. Qfin shares last traded at $31.68, with a volume of 646,411 shares trading hands.

The company reported $1.78 EPS for the quarter, missing the consensus estimate of $1.79 by ($0.01). Qfin had a net margin of 38.66% and a return on equity of 30.74%. The firm had revenue of $728.00 million for the quarter, compared to analysts' expectations of $4.68 billion.

Qfin Increases Dividend

The business also recently declared a semi-annual dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 8th will be paid a $0.76 dividend. The ex-dividend date of this dividend is Monday, September 8th. This represents a yield of 440.0%. This is a boost from Qfin's previous semi-annual dividend of $0.70. Qfin's dividend payout ratio is presently 21.47%.

Analyst Upgrades and Downgrades

A number of research firms have commented on QFIN. JPMorgan Chase & Co. began coverage on shares of Qfin in a research note on Wednesday, July 2nd. They issued an "overweight" rating and a $65.00 price target for the company. Wall Street Zen lowered shares of Qfin from a "strong-buy" rating to a "buy" rating in a report on Friday, July 18th. Three analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $51.73.

Institutional Investors Weigh In On Qfin

A number of hedge funds have recently made changes to their positions in QFIN. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Qfin by 10,812.1% in the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 2,042,306 shares of the company's stock worth $91,720,000 after acquiring an additional 2,023,590 shares during the last quarter. Aspex Management HK Ltd boosted its position in Qfin by 30.5% during the 2nd quarter. Aspex Management HK Ltd now owns 6,612,366 shares of the company's stock valued at $286,712,000 after buying an additional 1,547,312 shares during the period. Krane Funds Advisors LLC boosted its position in Qfin by 24.4% during the 1st quarter. Krane Funds Advisors LLC now owns 7,032,927 shares of the company's stock valued at $315,849,000 after buying an additional 1,381,624 shares during the period. Keystone Investors PTE Ltd. purchased a new stake in Qfin during the 1st quarter valued at $52,814,000. Finally, Norges Bank purchased a new stake in Qfin during the 2nd quarter valued at $43,265,000. 74.81% of the stock is currently owned by institutional investors.

Qfin Stock Up 1.8%

The firm has a market cap of $4.68 billion, a PE ratio of 4.19, a PEG ratio of 0.30 and a beta of 0.39. The company has a debt-to-equity ratio of 0.20, a quick ratio of 3.08 and a current ratio of 3.48. The company's 50-day simple moving average is $39.31 and its two-hundred day simple moving average is $40.94.

Qfin Company Profile

Qifu Technology, Inc, through its subsidiaries, operates credit-tech platform under the 360 Jietiao brand in the People's Republic of China. It provides credit-driven services that matches borrowers with financial institutions to conduct customer acquisition, initial and credit screening, advanced risk assessment, credit assessment, fund matching, and other post-facilitation services; and platform services, including loan facilitation and post-facilitation services to financial institution partners under intelligence credit engine, referral services, and risk management software-as-a-service.