The stock of LexinFintech Holdings Ltd. (NASDAQ:LX) is now priced at $7.77 and the shares are -0.19 points down or -2.39% lower compared to its previous closing price of $7.96. The stock had 1.488 million contracts set over the past session. LX shares’ daily volume is compared to its average trading volume at 2.177 million shares. However, it has a float of 29.32 million and although its performance was -10.79% over the week, it’s one to watch. Analysts have given the LX stock a yearly average price target of $12.75 per share. It means the stock’s upside potential is 64.09% with the LX share price recently placing at $7.74 to $7.9999. However, some brokerage firms have priced the stock below the average, including one that has called $¥61.80.
The shorts are running away from the LexinFintech Holdings Ltd. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the LX shares have declined. Short interest in the stock represents just 21.37% of its float, but the volume has dropped by -301577. The volume of shorted shares dropped to 6.267 million from 6.568 million shares over the last two weeks. The average intraday trading volume has been 1.145 million shares, which means that days to cover moved to roughly 5.473232.
In the last trading session, LexinFintech Holdings Ltd. (NASDAQ:LX) dropped by -$0.94 over the week and lost -$0.74 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $16.93. The stock recorded its established 52-week high on 01/22/20.
Since 05/06/20, the stock has traded to a low of $6.98 at 11.32%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, LexinFintech Holdings Ltd.’s two-week RSI is 38.43. This suggests that the stock is neutral at the moment and that LX shares’ price movement remains stable. The stochastic readings are equally revealing at 21.69% meaning the LX share price is currently in overbought territory.
The technical chart shows that the LX stock will likely settle at between $7.93 and $8.1 per share. However, if the stock dips below $7.67, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $7.58.
Currently, the stock is trading in the red of MACD, with a reading of -0.3. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Maxim Group assigned LX a rating of Outperform in their intiating review released on July 16. China Renaissance analysts upgraded their recommendation of the stock from Hold to Buy while keeping its target price at $13 in a flash note released to investors on June 16. Citigroup seeing the improvements upgraded the stock from Neutral to Buy on June 09.
The average rating for the LX equity is 1.8 and is currently gathering a bullish momentum. Of 10 analysts tracking LexinFintech Holdings Ltd. polled by Reuters, 1 rated LX as a hold. The remaining 9 analysts were split evenly. However, the split wasn’t equal as a majority (9) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the LX stock price is 3.78X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 10.6 below the group’s average of 35.6. LexinFintech Holdings Ltd. has its P/E ratio at 2.1, which means that the stock is currently trading at a discount relative to the 5.5 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for LexinFintech Holdings Ltd. (NASDAQ:LX) will decrease by about -99.88%, which will see them reach $526 million. The company’s full-year revenues are, however, expected to increase by about 23.68%, up from $1520 million to $1880 million. LX’s expected adjusted earnings should drop almost -25.93% to end up at $0.4 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -52.46% to record $0.87/share.