Yirendai Ltd. (NYSE:YRD) Sees Significant Increase in Short Interest

Yirendai Ltd. (NYSE:YRD) saw a significant growth in short interest in the month of October. As of October 15th, there was short interest totaling 2,563,242 shares, a growth of 1,932.2% from the September 30th total of 126,131 shares. Based on an average daily trading volume, of 12,592,145 shares, the days-to-cover ratio is presently 0.2 days. Currently, 5.1% of the shares of the stock are short sold.

Analyst Ratings Changes

Separately, Weiss Ratings restated a “sell (d)” rating on shares of Yirendai in a report on Wednesday, August 19th. One investment analyst has rated the stock with a Sell rating. Based on data from MarketBeat.com, the company has a consensus rating of “Sell”.

Yirendai Stock Performance

Shares of YRD stock traded down $0.09 during mid-day trading on Monday, reaching $0.58. The company’s stock had a trading volume of 204,895 shares, compared to its average volume of 7,079,442. The company’s 50 day simple moving average is $0.95 and its 200-day simple moving average is $1.95. Yirendai has a 12-month low of $0.36 and a 12-month high of $6.08.

Yirendai (NYSE:YRD) last issued its quarterly earnings data on Wednesday, September 30th. The technology company reported ($0.75) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.38 by ($1.13). Yirendai had a negative net margin of 35.36% and a negative return on equity of 17.30%. The firm had revenue of $131.00 million during the quarter, compared to analyst estimates of $237.57 million.

Yirendai announced that its board has authorized a share repurchase program on Thursday, July 2nd that authorizes the company to repurchase outstanding shares. This buyback authorization authorizes the technology company to repurchase shares of its stock through open market purchases. Share buyback programs are often a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of YRD. Ramsey Quantitative Systems purchased a new stake in Yirendai in the 2nd quarter worth approximately $110,000. Dimensional Fund Advisors LP raised its holdings in Yirendai by 3.1% during the first quarter. Dimensional Fund Advisors LP now owns 1,116,961 shares of the technology company’s stock valued at $1,917,000 after buying an additional 33,490 shares in the last quarter. Finally, GSA Capital Partners LLP lifted its position in shares of Yirendai by 10.3% in the second quarter. GSA Capital Partners LLP now owns 100,741 shares of the technology company’s stock worth $84,000 after buying an additional 9,391 shares during the last quarter. 1.99% of the stock is owned by institutional investors and hedge funds.

About Yirendai

Yirendai, now known as Yiren Digital Limited, is a China-based fintech company that provides digital financial services. The company operates an online platform focused primarily on consumer finance, helping individual borrowers access credit and providing related financial products and services through digital channels.

Founded in 2012 as a subsidiary of CreditEase, Yirendai was among the early Chinese online lending platforms to access international public markets. In response to regulatory changes affecting China’s peer-to-peer lending industry, the company broadened its business beyond its original online lending marketplace and developed additional consumer finance and wealth management offerings.

Yiren Digital primarily serves customers in mainland China.