Zacks Research Upgrades Lufax (NYSE:LU) to Hold

Key Points

• Zacks Research upgraded Lufax (NYSE:LU) to a hold, but analyst coverage is mixed — two holds and two sells leave a consensus rating of Reduce with a $2.00 average price target.
• Shares trade around $1.90 (market cap ≈ $1.64B) after reporting a quarterly loss of $1.19 per share and a negative P/E, with a one‑year range of $1.73–$4.57 and moving averages below $3.
• The company is facing a significant class action alleging it concealed auditor "red flags," with multiple plaintiff firms involved and a May 20, 2026 deadline to seek lead‑plaintiff status, raising material litigation and settlement risk.

Lufax (NYSE:LU - Get Free Report) was upgraded by equities research analysts at Zacks Research to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

Several other brokerages have also recently weighed in on LU. JPMorgan Chase & Co. started coverage on Lufax in a report on Friday, April 17th. They set a "neutral" rating and a $2.00 price objective for the company. Wall Street Zen cut Lufax from a "hold" rating to a "sell" rating in a report on Saturday, February 21st. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $2.00.

Lufax Trading Up 1.3%

Shares of NYSE:LU opened at $1.90 on Tuesday. The stock has a market capitalization of $1.64 billion, a P/E ratio of -2.43 and a beta of 0.76. Lufax has a 1-year low of $1.73 and a 1-year high of $4.57. The business has a 50-day moving average price of $2.24 and a two-hundred day moving average price of $2.62.

Lufax (NYSE:LU - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The company reported ($1.19) earnings per share for the quarter. The business had revenue of $724.89 million during the quarter.

Institutional Trading of Lufax

A number of institutional investors and hedge funds have recently modified their holdings of LU. Scientech Research LLC bought a new stake in shares of Lufax in the 3rd quarter valued at about $46,000. Hudson Bay Capital Management LP bought a new stake in shares of Lufax in the 2nd quarter valued at about $58,000. Headlands Technologies LLC increased its stake in shares of Lufax by 245.1% in the 2nd quarter. Headlands Technologies LLC now owns 26,928 shares of the company's stock valued at $75,000 after acquiring an additional 19,126 shares during the last quarter. Virtu Financial LLC bought a new stake in shares of Lufax in the 4th quarter valued at about $96,000. Finally, Profund Advisors LLC increased its stake in shares of Lufax by 26.1% in the 3rd quarter. Profund Advisors LLC now owns 31,714 shares of the company's stock valued at $129,000 after acquiring an additional 6,565 shares during the last quarter. 69.14% of the stock is owned by institutional investors.

Key Stories Impacting Lufax

Here are the key news stories impacting Lufax this week:

• Negative Sentiment: A class action was publicly asserted alleging Lufax concealed auditor “red flags” and related misconduct; the notice frames potential securities-fraud claims covering purchases from April 7, 2023 through January 26, 2025. This is the core allegation driving the litigation risk. Read More.
• Negative Sentiment: National plaintiffs’ firms (e.g., Berger Montague) are notifying investors of a May 20, 2026 deadline to seek lead-plaintiff status; consolidation of multiple firm actions or appointment of a lead plaintiff can accelerate litigation and settlement timelines. Read More.
• Negative Sentiment: Multiple additional firms (Bragar Eagel & Squire, Faruqi & Faruqi, Hagens Berman, Rosen, Pomerantz, Glancy, Bernstein Liebhard, Schall, and others) have either filed or issued client/ deadline alerts—signaling broad plaintiff interest and likely sustained media/legal attention. This increases the chance of follow-on filings and settlement pressure. Read More.
• Negative Sentiment: One of the recurring factual themes in the notices is that an auditor raised red flags and was later fired—allegations that, if substantiated, could strengthen plaintiffs’ claims and increase potential exposure for Lufax. Expect litigation to be a headline driver for LU while matters proceed. Read More.

About Lufax

Lufax NYSE: LU is a leading provider of online wealth management and personal finance services in China. Established in 2011 as a spin-off from Ping An Insurance (Group) Company of China, Lufax has developed a digital ecosystem designed to match retail and institutional investors with a diverse array of financial products. The company went public on the New York Stock Exchange in October 2020, underscoring its ambition to expand beyond its domestic market.

The firm's core business activities include peer-to-peer lending, consumer finance, supply chain and small-business lending, as well as online asset management.

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