Short Interest in LexinFintech Holdings Ltd. Sponsored ADR (NASDAQ:LX) Increases By 80.6%

Key Points

• Short interest in LexinFintech Holdings Ltd. increased by 80.6% in July, reaching 6,500,000 shares, indicating heightened bearish sentiment among investors.
• Several hedge funds have significantly increased their positions in LexinFintech, with Nomura Holdings Inc. boosting its stake by 107.6% during the second quarter.
• LexinFintech plans to pay a semi-annual dividend of $0.194 on September 15th, marking an increase from the previous dividend of $0.11.

LexinFintech Holdings Ltd. Sponsored ADR (NASDAQ:LX - Get Free Report) was the target of a large increase in short interest during the month of July. As of July 31st, there was short interest totaling 6,500,000 shares, anincreaseof80.6% from the July 15th total of 3,600,000 shares. Based on an average trading volume of 3,140,000 shares, the days-to-cover ratio is presently 2.1 days. Currently,4.9% of the company's shares are sold short. Currently,4.9% of the company's shares are sold short. Based on an average trading volume of 3,140,000 shares, the days-to-cover ratio is presently 2.1 days.

Institutional Investors Weigh In On LexinFintech

A number of hedge funds have recently made changes to their positions in LX. Nomura Holdings Inc. increased its stake in LexinFintech by 107.6% during the second quarter. Nomura Holdings Inc. now owns 1,057,883 shares of the company's stock worth $7,627,000 after acquiring an additional 548,371 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in shares of LexinFintech by 350.5% during the second quarter. Tower Research Capital LLC TRC now owns 9,969 shares of the company's stock valued at $72,000 after buying an additional 7,756 shares during the last quarter. Tidal Investments LLC purchased a new position in LexinFintech during the 2nd quarter worth $115,000. Man Group plc increased its holdings in LexinFintech by 207.0% during the 2nd quarter. Man Group plc now owns 3,419,971 shares of the company's stock worth $24,658,000 after purchasing an additional 2,306,088 shares during the period. Finally, Lazard Asset Management LLC increased its holdings in LexinFintech by 70.4% during the 2nd quarter. Lazard Asset Management LLC now owns 1,145,088 shares of the company's stock worth $8,256,000 after purchasing an additional 473,133 shares during the period.

Analyst Ratings Changes

Separately, Wall Street Zen cut LexinFintech from a "buy" rating to a "hold" rating in a report on Saturday, August 9th.

LexinFintech Stock Performance

Shares of LX traded down $0.45 during trading hours on Monday, hitting $6.26. The stock had a trading volume of 5,261,212 shares, compared to its average volume of 3,537,242. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.89 and a quick ratio of 1.88. LexinFintech has a 12 month low of $1.63 and a 12 month high of $11.64. The firm has a market capitalization of $1.05 billion, a PE ratio of 4.93 and a beta of 0.47. The stock has a fifty day moving average price of $6.94 and a 200 day moving average price of $7.92.

LexinFintech (NASDAQ:LX - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.20. The company had revenue of $500.62 million for the quarter, compared to the consensus estimate of $500.62 million. LexinFintech had a return on equity of 14.67% and a net margin of 11.50%.

LexinFintech Increases Dividend

The firm also recently disclosed a semi-annual dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, August 26th will be given a $0.194 dividend. The ex-dividend date is Tuesday, August 26th. This is a positive change from LexinFintech's previous semi-annual dividend of $0.11. This represents a dividend yield of 440.0%. LexinFintech's dividend payout ratio (DPR) is presently 14.17%.

LexinFintech announced that its board has approved a share repurchase program on Monday, July 21st that permits the company to repurchase $0.00 in outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its shares are undervalued.

About LexinFintech

LexinFintech Holdings Ltd., through its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending.

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