Lufax (NYSE:LU) Shares Gap Down Following Weak Earnings

Lufax Holding Ltd (NYSE:LU) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $2.73, but opened at $2.30. Lufax shares last traded at $2.46, with a volume of 2,347,455 shares.

The company reported ($0.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.26). Lufax had a negative return on equity of 0.72% and a negative net margin of 2.17%. The firm had revenue of $822.36 million for the quarter. During the same quarter last year, the firm earned $0.24 earnings per share.

Wall Street Analysts Forecast Growth

Separately, Bank of America decreased their price objective on Lufax from $5.22 to $2.75 and set a “neutral” rating for the company in a research note on Friday.

Institutional Investors Weigh In On Lufax

A number of hedge funds have recently made changes to their positions in the stock. Panagora Asset Management Inc. purchased a new stake in shares of Lufax during the 2nd quarter worth $26,000. Sequoia Financial Advisors LLC purchased a new stake in Lufax in the first quarter valued at about $60,000. PFG Investments LLC purchased a new stake in Lufax in the first quarter valued at about $76,000. PDS Planning Inc purchased a new stake in Lufax in the first quarter valued at about $78,000. Finally, Diversified Trust Co purchased a new stake in Lufax in the first quarter valued at about $92,000. 69.14% of the stock is currently owned by hedge funds and other institutional investors.

Lufax Stock Performance

The business has a 50 day simple moving average of $2.68 and a 200 day simple moving average of $3.30. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $1.31 billion, a PE ratio of -16.32, a PEG ratio of 0.36 and a beta of 0.83.

About Lufax

Lufax Holding Ltd operates as a financial service empowering institution for small and micro businesses in China. The company offers loan products, including general unsecured loans and secured loans, as well as consumer finance loans. It also provides wealth management products, such as asset management plans, mutual fund products, private investment fund products, and trust products.