LexinFintech (NASDAQ:LX) Downgraded by Wall Street Zen 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 note issued to investors on Sunday.

LexinFintech Trading Down 1.0%

NASDAQ:LX traded down $0.06 on Friday, hitting $6.00. 2,137,549 shares of the stock were exchanged, compared to its average volume of 3,416,692. The stock has a fifty day moving average of $6.68 and a 200-day moving average of $7.75. The stock has a market cap of $1.01 billion, a PE ratio of 4.72 and a beta of 0.54. 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 fifty-two week low of $1.63 and a fifty-two week high of $11.64.

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

LexinFintech declared that its board has authorized a stock buyback plan on Monday, July 21st that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

LexinFintech Increases Dividend

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

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Squarepoint Ops LLC boosted its position in shares of LexinFintech by 27.4% in the second quarter. Squarepoint Ops LLC now owns 93,964 shares of the company's stock worth $677,000 after buying an additional 20,229 shares during the period. Nomura Holdings Inc. lifted its position in LexinFintech by 107.6% during the 2nd 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 in the last quarter. Tower Research Capital LLC TRC boosted its holdings in LexinFintech by 350.5% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,969 shares of the company's stock worth $72,000 after acquiring an additional 7,756 shares during the period. Tidal Investments LLC purchased a new position in LexinFintech in the 2nd quarter worth approximately $115,000. Finally, Man Group plc grew its position in LexinFintech by 207.0% in the second quarter. Man Group plc now owns 3,419,971 shares of the company's stock valued at $24,658,000 after acquiring an additional 2,306,088 shares in the last quarter.

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.