Qfin (NASDAQ:QFIN) Trading Down 4.6% on Analyst Downgrade

Qfin Holdings Inc. – Sponsored ADR (NASDAQ:QFIN) was down 4.6% during mid-day trading on Thursday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. Morgan Stanley now has a $13.00 price target on the stock. Qfin traded as low as $8.91 and last traded at $8.92. 529,338 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 1,598,217 shares. The stock had previously closed at $9.35.

Several other brokerages have also issued reports on QFIN. JPMorgan Chase & Co. lowered Qfin from a “neutral” rating to an “underweight” rating and lowered their target price for the company from $13.50 to $9.00 in a research note on Wednesday. Bank of America reiterated a “neutral” rating and issued a $15.33 target price on shares of Qfin in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft set a $13.00 price target on shares of Qfin in a research report on Wednesday, August 12th. Weiss Ratings cut shares of Qfin from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday, July 13th. Finally, Citigroup downgraded Qfin from a “buy” rating to a “sell” rating and set a $8.00 price objective on the stock. in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $12.29.

Insider Buying and Selling

In other Qfin news, Director Xiaohuan Chen bought 4,000 shares of the company’s stock in a transaction dated Tuesday, June 9th. The shares were purchased at an average price of $14.41 per share, for a total transaction of $57,640.00. Following the acquisition, the director owned 19,000 shares in the company, valued at approximately $273,790. This represents a 26.67% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 17.10% of the company’s stock.

More Qfin News

Here are the key news stories impacting Qfin this week:

• Positive Sentiment: Qfin declared a semi-annual dividend alongside its second-quarter results, providing income support for shareholders. The company reported $524.96 million in quarterly revenue, a 22.23% net margin and 15.44% return on equity. Qfin second-quarter results and dividend announcement
• Positive Sentiment: Morgan Stanley’s revised $13 price target remains materially above the current trading level, indicating potential upside if Qfin’s operating performance stabilizes, although the firm lowered its rating from Overweight to Equal Weight. Morgan Stanley rating update

Institutional Investors Weigh In On Qfin

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. FountainVest China Capital Partners GP3 Ltd. bought a new stake in shares of Qfin in the 2nd quarter worth approximately $95,483,341,000. Triata Capital Ltd raised its stake in Qfin by 188.3% during the fourth quarter. Triata Capital Ltd now owns 3,125,331 shares of the company’s stock valued at $60,225,000 after buying an additional 2,041,351 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in Qfin by 9.8% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,988,999 shares of the company’s stock valued at $38,350,000 after buying an additional 176,754 shares during the last quarter. Bank of America Corp DE boosted its holdings in Qfin by 48.5% in the first quarter. Bank of America Corp DE now owns 1,987,457 shares of the company’s stock worth $25,658,000 after acquiring an additional 649,492 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its stake in shares of Qfin by 198.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,842,278 shares of the company’s stock worth $35,501,000 after acquiring an additional 1,224,164 shares during the last quarter. Hedge funds and other institutional investors own 74.81% of the company’s stock.

Qfin Price Performance

The firm has a fifty day moving average price of $13.54 and a two-hundred day moving average price of $13.89. The company has a quick ratio of 2.22, a current ratio of 2.22 and a debt-to-equity ratio of 0.03. The stock has a market capitalization of $1.08 billion, a P/E ratio of 2.13 and a beta of 0.63.

Qfin (NASDAQ:QFIN) last issued its earnings results on Friday, August 14th. The company reported $0.55 EPS for the quarter. The business had revenue of $524.96 million for the quarter. Qfin had a return on equity of 15.44% and a net margin of 22.23%. On average, analysts expect that Qfin Holdings Inc. – Sponsored ADR will post 3.74 EPS for the current year.

About Qfin

360 DigiTech, Inc (NASDAQ: QFIN) is a China‐based fintech company that specializes in providing digital lending solutions to underserved consumer and small business markets. Leveraging proprietary credit assessment technologies and big data analytics, the company connects borrowers with a network of financial institutions and investors through its online platform. Its services encompass unsecured consumer loans, installment credit products, and working capital financing for micro and small enterprises.

The company’s flagship platform offers an end‐to‐end digital lending experience, from application and credit evaluation to disbursement and repayment.