Luckin Coffee (OTCMKTS:LKNCY) Sees Strong Trading Volume – Should You Buy?

Shares of Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY) saw strong trading volume on Tuesday . 2,047,068 shares traded hands during mid-day trading, an increase of 96% from the previous session’s volume of 1,043,080 shares.The stock last traded at $34.44 and had previously closed at $34.76.

Analyst Upgrades and Downgrades

Separately, Zacks Research upgraded shares of Luckin Coffee to a “hold” rating in a research note on Thursday, November 20th. One research analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $52.00.

Luckin Coffee Price Performance

The company has a fifty day moving average price of $36.05 and a 200 day moving average price of $37.50. The company has a market cap of $9.62 billion, a PE ratio of 19.26 and a beta of -0.46.

Luckin Coffee (OTCMKTS:LKNCY) last announced its earnings results on Monday, November 17th. The company reported $0.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.65 by ($0.01). Luckin Coffee had a net margin of 8.45% and a return on equity of 33.69%. The company had revenue of $2.15 billion for the quarter, compared to the consensus estimate of $1.94 billion.

About Luckin Coffee

Luckin Coffee Inc is a China-based coffeehouse chain that combines a digitally driven ordering platform with a network of physical outlets. The company’s mobile app and in-store kiosks enable customers to place orders for takeaway or delivery, while its proprietary supply chain supports rapid store expansion and consistent product quality. Luckin’s retail portfolio includes “grab-and-go” pickup points, delivery-only kitchens and full-service cafés designed to meet the varied needs of urban consumers.

Luckin’s menu features a broad range of espresso-based drinks, including lattes, Americanos and cold brews, complemented by tea-based beverages, fruit juices and a selection of light food items such as sandwiches and pastries.