Yirendai (NYSE:YRD) Shares Pass Below Fifty Day Moving Average - What's Next?

Key Points

• Yirendai shares weakened technically after falling below their 50-day moving average, trading as low as $1.20 and last changing hands at $1.27. The stock’s 50-day average is $1.43, while its 200-day average is much higher at $2.56.
• Recent fundamentals were disappointing, with the company reporting a quarterly loss of $0.82 per share versus expectations for a profit of $0.38. Revenue also came in well below estimates at $132.73 million compared with the expected $237.43 million.
• Sentiment remains cautious as Weiss Ratings downgraded Yirendai from “sell (d+)” to “sell (d),” and MarketBeat data shows a consensus rating of “Sell.” The company also announced a share repurchase program, though the authorization amount was listed as $0.00 in the filing.

Yirendai Ltd. (NYSE:YRD - Get Free Report) passed below its fifty day moving average during trading on Tuesday . The stock has a fifty day moving average of $1.43 and traded as low as $1.20. Yirendai shares last traded at $1.27, with a volume of 101,552 shares changing hands.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut shares of Yirendai from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, May 22nd. One investment analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, Yirendai has a consensus rating of "Sell".

Yirendai Stock Performance

The company has a 50 day moving average of $1.43 and a 200 day moving average of $2.56. The stock has a market capitalization of $111.11 million, a price-to-earnings ratio of -1.08 and a beta of 1.13.

Yirendai (NYSE:YRD - Get Free Report) last announced its quarterly earnings data on Friday, June 26th. The technology company reported ($0.82) earnings per share for the quarter, missing analysts' consensus estimates of $0.38 by ($1.20). Yirendai had a negative net margin of 14.35% and a negative return on equity of 7.58%. The firm had revenue of $132.73 million during the quarter, compared to analysts' expectations of $237.43 million.

Yirendai announced that its Board of Directors has initiated a share repurchase program on Thursday, July 2nd that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the technology company to repurchase shares of its stock through open market purchases. Shares repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Institutional Trading of Yirendai

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Verdad Advisers LP purchased a new stake in Yirendai during the fourth quarter worth about $195,000. Trexquant Investment LP boosted its stake in shares of Yirendai by 12.2% in the fourth quarter. Trexquant Investment LP now owns 81,138 shares of the technology company's stock valued at $300,000 after purchasing an additional 8,838 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Yirendai by 0.4% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,083,471 shares of the technology company's stock valued at $4,010,000 after purchasing an additional 4,123 shares during the period. Public Employees Retirement System of Ohio grew its holdings in shares of Yirendai by 6.3% in the third quarter. Public Employees Retirement System of Ohio now owns 49,229 shares of the technology company's stock valued at $292,000 after purchasing an additional 2,933 shares in the last quarter. Finally, XTX Topco Ltd grew its holdings in shares of Yirendai by 52.8% in the fourth quarter. XTX Topco Ltd now owns 47,898 shares of the technology company's stock valued at $177,000 after purchasing an additional 16,554 shares in the last quarter. 1.99% of the stock is currently owned by hedge funds and other institutional investors.

About Yirendai

Yirendai Ltd is a leading fintech credit marketplace in China, offering consumer financing solutions through a digital platform. As a subsidiary of CreditEase, one of the country’s earliest peer-to-peer lending pioneers, Yirendai facilitates connections between individual borrowers and institutional or retail investors. The company’s integrated platform handles borrower screening, credit assessment, risk management and loan servicing to deliver a streamlined, transparent lending experience.

The company provides unsecured personal loans for purposes such as debt consolidation, home improvement and small business investment.

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