Wall Street Zen Downgrades LexinFintech (NASDAQ:LX) to Hold

Key Points

• LexinFintech has been downgraded from a "buy" to a "hold" rating by analysts at Wall Street Zen.
• The company's stock opened at $6.32 and boasts a market capitalization of $1.06 billion, with notable fluctuations over the past year.
• LexinFintech recently reported $0.40 earnings per share, exceeding analyst expectations of $0.20, with revenue matching forecasts at $500.62 million.

Wall Street Zen lowered shares of LexinFintech (NASDAQ:LX - Free Report) from a buy rating to a hold rating in a research report report published on Sunday.

LexinFintech Trading Down 3.1%

LexinFintech stock traded down $0.20 during trading on Friday, hitting $6.10. The company had a trading volume of 1,629,029 shares, compared to its average volume of 3,523,308. The company has a current ratio of 1.89, a quick ratio of 1.88 and a debt-to-equity ratio of 0.11. LexinFintech has a 1-year low of $1.63 and a 1-year high of $11.64. The stock has a market cap of $1.03 billion, a price-to-earnings ratio of 4.81 and a beta of 0.54. The company's 50 day simple moving average is $6.74 and its 200-day simple moving average is $7.78.

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

LexinFintech Increases Dividend

The firm also recently declared a semi-annual dividend, which will be paid on Monday, September 15th. Shareholders of record on Tuesday, August 26th will be given a $0.194 dividend. The ex-dividend date of this dividend is Tuesday, August 26th. This represents a yield of 440.0%. This is a boost from LexinFintech's previous semi-annual dividend of $0.11. LexinFintech's dividend payout ratio is 24.41%.

LexinFintech announced that its board has initiated a stock buyback program on Monday, July 21st that permits the company to buyback $0.00 in shares. This buyback authorization permits the company to repurchase shares of its stock through open market purchases. Shares buyback programs are generally an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On LexinFintech

Institutional investors have recently modified their holdings of the company. Ameriprise Financial Inc. purchased a new stake in shares of LexinFintech during the 4th quarter worth $61,000. Tower Research Capital LLC TRC lifted its position in shares of LexinFintech by 146.5% during the 4th quarter. Tower Research Capital LLC TRC now owns 12,160 shares of the company's stock worth $71,000 after purchasing an additional 7,227 shares during the last quarter. Tower Research Capital LLC TRC lifted its position in shares of LexinFintech by 350.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 9,969 shares of the company's stock worth $72,000 after purchasing an additional 7,756 shares during the last quarter. Janney Montgomery Scott LLC purchased a new stake in shares of LexinFintech during the 2nd quarter worth $75,000. Finally, Ballentine Partners LLC purchased a new stake in shares of LexinFintech during the 2nd quarter worth $86,000.

LexinFintech Company Profile

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.