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

Key Points

• Shares gapped down: QFIN opened at $13.13 after a $13.85 close and last traded around $13.34 (down about 4.6%) with 143,531 shares changing hands.
• Analyst sentiment weakened: Jefferies cut its target from $30.30 to $23.40 (still a "buy"), Weiss downgraded to "sell," and the consensus rating is "Reduce" with an average target of $22.20.
• Corporate actions and insider activity: Qfin declared a $0.78 dividend payable May 14 (ex-dividend April 22) and Director Xiaohuan Chen purchased 190,000 shares at $12.89 (~$2.45M), while the company reports strong recent profitability (net margin 31.13%).

Qfin Holdings Inc. - Sponsored ADR (NASDAQ:QFIN - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $13.85, but opened at $13.13. Qfin shares last traded at $13.3390, with a volume of 143,531 shares traded.

Analyst Upgrades and Downgrades

Several equities analysts have commented on QFIN shares. Jefferies Financial Group lowered their target price on shares of Qfin from $30.30 to $23.40 and set a "buy" rating on the stock in a research report on Wednesday, March 18th. Weiss Ratings downgraded Qfin from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, April 6th. One analyst has rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $22.20.

Qfin Trading Down 4.6%

The company has a market capitalization of $1.88 billion, a price-to-earnings ratio of 2.15, a P/E/G ratio of 0.26 and a beta of 0.51. The company has a 50-day moving average price of $14.09 and a 200-day moving average price of $18.17. The company has a quick ratio of 2.94, a current ratio of 2.43 and a debt-to-equity ratio of 0.07.

Qfin (NASDAQ:QFIN - Get Free Report) last issued its quarterly earnings results on Saturday, February 14th. The company reported $0.59 earnings per share (EPS) for the quarter. The company had revenue of $584.98 million for the quarter. Qfin had a return on equity of 24.97% and a net margin of 31.13%. Research analysts predict that Qfin Holdings Inc. - Sponsored ADR will post 3.82 EPS for the current fiscal year.

Qfin Dividend Announcement

The firm also recently declared a dividend, which will be paid on Thursday, May 14th. Shareholders of record on Wednesday, April 22nd will be paid a dividend of $0.78 per share. The ex-dividend date is Wednesday, April 22nd. This represents a yield of 1,180.0%. Qfin's dividend payout ratio (DPR) is currently 24.35%.

Insider Buying and Selling

In other Qfin news, Director Xiaohuan Chen purchased 190,000 shares of the business's stock in a transaction on Friday, March 27th. The stock was purchased at an average price of $12.89 per share, for a total transaction of $2,449,100.00. Following the completion of the purchase, the director directly owned 190,000 shares in the company, valued at approximately $2,449,100. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 17.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in QFIN. Royal Bank of Canada lifted its stake in Qfin by 51.7% during the first quarter. Royal Bank of Canada now owns 6,508 shares of the company's stock worth $293,000 after purchasing an additional 2,219 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Qfin during the first quarter worth about $29,000. Goldman Sachs Group Inc. raised its stake in shares of Qfin by 32.7% in the first quarter. Goldman Sachs Group Inc. now owns 1,603,830 shares of the company's stock valued at $72,028,000 after acquiring an additional 395,589 shares during the last quarter. California State Teachers Retirement System raised its stake in shares of Qfin by 333.8% in the second quarter. California State Teachers Retirement System now owns 34,810 shares of the company's stock valued at $1,509,000 after acquiring an additional 26,786 shares during the last quarter. Finally, Voya Investment Management LLC raised its stake in shares of Qfin by 52.2% in the third quarter. Voya Investment Management LLC now owns 28,636 shares of the company's stock valued at $824,000 after acquiring an additional 9,824 shares during the last quarter. Institutional investors own 74.81% of the company's stock.

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.

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