LexinFintech Holdings Ltd. (LX) can make a big difference with a little luck

LexinFintech Holdings Ltd. (NASDAQ: LX) stock fell -2.16% on Thursday to $2.26 against a previous-day closing price of $2.31. With 0.57 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.48 million shares. During the session, the Credit Services company that operates in wider Financial sector, reached to the highest price of $2.3200 whereas the lowest price it dropped to was $2.2100. The 52-week range on LX shows that it touched its highest point at $3.86 and its lowest point at $1.26 during that stretch. It currently has a 1-year price target of $3.45. Beta for the stock currently stands at 0.69.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LX was down-trending over the past week, with a drop of -9.24%, but this was up by 2.73% over a month. Three-month performance dropped to -20.98% while six-month performance rose 43.95%. The stock gained 3.20% in the past year, while it has gained 18.95% so far this year. A look at the trailing 12-month EPS for LX yields 0.60 with Next year EPS estimates of 1.22. EPS is expected to grow by 2.36% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 92.30%.

Float and Shares Shorts:

At present, 172.79 million LX shares are outstanding with a float of 65.44 million shares on hand for trading. On May 14, 2023, short shares totaled 0.95 million, which was 0.58% higher than short shares on Apr 13, 2023. In addition to Mr. Wenjie Xiao as the firm’s Chairman & CEO, Mr. Yi Wu serves as its Pres & Director.

Institutional Ownership:

Through their ownership of 21.58% of LX’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.55% of LX, in contrast to 13.90% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in LX with 4.47% of the stake, FIL Investment Advisors holds 6,207,173 shares worth 6,207,173. A second-largest stockholder of LX, FIL Investment Management, holds 4,658,231 shares, controlling over 3.36% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in LX, holding 4,153,586 shares or 2.99% stake. With a 2.94% stake in LX, the Fidelity China Special Situations is the largest stakeholder. A total of 4,078,709 shares are owned by the mutual fund manager. The Fidelity Funds SICAV – Pacific Fu, which owns about 2.33% of LX stock, is the second-largest Mutual Fund holder. It holds 3,237,251 shares valued at 7.74 million. Vanguard Emerging Markets Stock I holds 1.34% of the stake in LX, owning 1,863,326 shares worth 4.45 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Dec 30, 2022, LX reported revenue of $2.41B and operating income of -$111.83M. The EBITDA in the recently reported quarter was -$87.16M and diluted EPS was $0.88.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LX since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With LX analysts setting a high price target of $33.88 and a low target of $19.93, the average target price over the next 12 months is $24.74. Based on these targets, LX could surge 1399.12% to reach the target high and rise by 781.86% to reach the target low. Reaching the average price target will result in a growth of 994.69% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.