LexinFintech (NASDAQ:LX) Releases Earnings Results

LexinFintech (NASDAQ:LX) posted its earnings results on Monday. The company reported $0.10 earnings per share for the quarter, FiscalAI reports. LexinFintech had a return on equity of 14.36% and a net margin of 12.72%.The company had revenue of $479.95 million during the quarter.

Here are the key takeaways from LexinFintech’s conference call:

• Lexin said its diversified ecosystem is now accounting for nearly 50% of total loan volume, with installment e-commerce, offline inclusive finance and fintech empowerment growing faster than the core online loan business and becoming new growth drivers.
• First-quarter operating performance was solid, with loan volume up 15.9% QoQ and 12.2% YoY to RMB 57.9 billion, while active users rose to 5.17 million and net profit was RMB 201 million.
• Management highlighted improving asset quality, saying total-asset delinquency fell about 7% from Q4, and FPD30 on new loans is expected to decline about 6%, supported by tighter risk models and better customer screening.
• The company’s fintech empowerment business gained traction through its Yunxi Technology PRO solution, which connects traffic platforms and financial institutions; management said this segment is growing quickly but revenue recognition is still gradual.
• For the second quarter, Lexin expects loan originations to remain relatively stable as macro uncertainty persists, while it continues to prioritize prudent risk control, expense discipline, and gradual improvement in its business mix.

LexinFintech Stock Up 13.8%

Shares of NASDAQ LX opened at $2.23 on Wednesday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.89 and a current ratio of 1.89. LexinFintech has a 52 week low of $1.79 and a 52 week high of $7.99. The stock has a market capitalization of $373.53 million, a P/E ratio of 1.70 and a beta of 0.83. The stock’s fifty day moving average is $2.20 and its 200 day moving average is $2.83.

LexinFintech Announces Dividend

The business also recently declared a dividend, which will be paid on Wednesday, June 3rd. Investors of record on Friday, April 24th will be given a $0.188 dividend. The ex-dividend date is Friday, April 24th. This represents a dividend yield of 1,757.0%. LexinFintech’s dividend payout ratio (DPR) is presently 22.90%.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings restated a “hold (c)” rating on shares of LexinFintech in a research report on Friday, March 27th. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, LexinFintech has a consensus rating of “Hold” and an average price target of $3.50.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of LX. Bank of America Corp DE increased its position in shares of LexinFintech by 320.4% in the third quarter. Bank of America Corp DE now owns 3,861,508 shares of the company’s stock worth $20,582,000 after purchasing an additional 2,942,964 shares during the period. Man Group plc grew its position in LexinFintech by 207.0% in the second quarter. Man Group plc now owns 3,419,971 shares of the company’s stock valued at $24,658,000 after acquiring an additional 2,306,088 shares during the last quarter. Anatole Investment Management Ltd grew its position in LexinFintech by 79.6% in the fourth quarter. Anatole Investment Management Ltd now owns 4,870,383 shares of the company’s stock valued at $15,926,000 after acquiring an additional 2,159,246 shares during the last quarter. UBS Group AG grew its position in LexinFintech by 337.4% in the third quarter. UBS Group AG now owns 2,563,047 shares of the company’s stock valued at $13,661,000 after acquiring an additional 1,977,021 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its position in LexinFintech by 67.6% in the third quarter. JPMorgan Chase & Co. now owns 3,528,164 shares of the company’s stock valued at $18,805,000 after acquiring an additional 1,423,034 shares during the last quarter.

LexinFintech Company Profile

LexinFintech Holdings Ltd. (NASDAQ: LX) is a China-based consumer finance and digital banking platform primarily serving young, underbanked consumers. The company’s core offering is point-of-sale installment financing, enabling eligible customers to split purchases into fixed monthly payments with transparent fees. Leveraging proprietary data analytics and credit scoring models, LexinFintech underwrites consumer loans for online purchases and provides credit lines that support a variety of retail and e-commerce transactions.

In addition to its flagship installment loan service, LexinFintech has developed wealth management and fintech-as-a-service products.