Don’t Be Fooled By Weakness in LexinFintech Holdings Ltd. [LX] Stock

LexinFintech Holdings Ltd. [LX] shares are down more than -39.49% this year and recently decreased -0.06% or -$0.4 to settle at $6.68. Analysts expect LX to grow earnings at a 2.36% annual rate over the next 5 years. LX has a short ratio of 2.84. This implies that the market is currently less bearish on the outlook for LX.

On 24, November 2020, LexinFintech Holdings Ltd. Reports Third Quarter 2020 Unaudited Financial Results. According to news published on Yahoo Finance, LexinFintech Holdings Ltd. (“Lexin” or the “Company”) (NASDAQ: LX), a leading online consumption and consumer finance platform for new generation consumers in China, today announced its unaudited financial results for the quarter ended September 30, 2020.

Analyst Birdseye View:

The most recent analyst activity for LexinFintech Holdings Ltd. [NASDAQ:LX] stock was on June 16, 2020, when it was Upgrade with a Buy rating from China Renaissance, which also raised its 12-month price target on the stock to $13. Before that, on July 16, 2020, CLSA Recapitulated an Outperform rating and elevated its amount target to $13. On June 09, 2020, Citigroup Upgrade a Buy rating. On March 06, 2020, China Renaissance Downgrade a Hold rating. On October 09, 2019, Credit Suisse Initiated an Outperform rating. On December 11, 2018, Morgan Stanley Initiated an Equal-weight rating. On November 23, 2018, Goldman Upgrade a Buy rating. Goldman elevated its amount target by recapitulating a higher weight for this stock.

In the past 52 weeks of trading, this stock has oscillated between a low of $6.04 and a peak of $16.93. Right now, according to Wall Street analyst the average 12-month amount target is $67.79. At the most recent market close, shares of LexinFintech Holdings Ltd. [NASDAQ:LX] were valued at $6.68. According to the average price forecast, investors can expect a potential return of 83.78%.

FUNDAMENTAL ANALYSIS

LexinFintech Holdings Ltd. [NASDAQ:LX] most recently reported quarterly sales of 468.02 billion, which represented growth of -1.10%. This publicly-traded organization’s revenue is $481,572 per employee, while its income is $102,903 per employee. This company’s Gross Margin is currently 30.50%, its Operating Margin is 10.00%, its Pretax Margin is +25.20, and its Net Margin is +21.37. Continuing to look at profitability, this corporation’s Return on Assets, Equity, Whole Principal & invested Principal is sitting at 14.51, 42.97, 22.07 and 34.39 respectively.

The Principal structure of this organization shows its whole liability to whole principal at 55.72 and the whole liability to whole assets at 43.17. It shows enduring liability to the whole principal at 16.94 and enduring liability to assets at 0.13 while looking for an extended time period.

Readers are usually of view to make a close observation to the indicators that support and make resistance before moving to any particular stock. As of now, the company’s stock is sitting at 6.99 points at 1st support level, the second support level is making up to 6.91. But as of 1st resistance point, this stock is sitting at 7.24 and at 7.40 for 2nd resistance point.

LexinFintech Holdings Ltd. [LX] reported its earnings at $0.33 per share in the fiscal quarter closing of 9/29/2020. The Analysts for Wall Street were expecting to report its earnings at $0.27/share signifying the difference of 0.06 and 22.20% surprise value. Comparing the previous quarter ending of 6/29/2020, the stated earnings were $0.33 calling estimates for $0.34/share with the difference of -0.01 depicting the surprise of -2.90%.

Important Ratio’s To Watch

Meanwhile, turning our focus to liquidity, the Current Ratio for LexinFintech Holdings Ltd. [NASDAQ:LX] is 1.30. Now if looking for a valuation of this stock’s amount to sales ratio it’s 1.68, it’s amount to book ratio is 2.63 and showing 18.44 of P/E (TTM) ratio.