Lufax Holding Ltd ADR (LU) Shares Rise Despite Market Challenges

Lufax Holding Ltd ADR (NYSE: LU)’s stock price has soared by 2.49 in relation to previous closing price of 2.77. Nevertheless, the company has seen a gain of 4.76% in its stock price over the last five trading days. seekingalpha.com reported 2024-07-06 that Two Chinese companies, Lufax Holdings and DouYu, recently announced special dividends that yielded 50% for shareholders who held immediately after the payouts were announced. The Lufax special dividend has already been paid. The DouYu special hasn’t been paid and is not ex-dividend yet. Although the stock has responded to the dividend announcement, the forward yield is still over 50%.

Is It Worth Investing in Lufax Holding Ltd ADR (NYSE: LU) Right Now?

The 36-month beta value for LU is also noteworthy at 0.90. There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”

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The public float for LU is 544.59M, and at present, short sellers hold a 2.01% of that float. The average trading volume of LU on July 24, 2024 was 6.08M shares.

LU’s Market Performance

LU’s stock has seen a 4.76% increase for the week, with a 25.62% rise in the past month and a 45.51% gain in the past quarter. The volatility ratio for the week is 4.61%, and the volatility levels for the past 30 days are at 8.22% for Lufax Holding Ltd ADR The simple moving average for the last 20 days is 4.16% for LU’s stock, with a simple moving average of 61.84% for the last 200 days.

Analysts’ Opinion of LU

UBS, on the other hand, stated in their research note that they expect to see LU reach a price target of $1, previously predicting the price at $1.60. The rating they have provided for LU stocks is “Sell” according to the report published on August 24th, 2023.

Bernstein gave a rating of “Outperform” to LU, setting the target price at $2.50 in the report published on June 08th of the previous year.

LU Trading at 20.49% from the 50-Day Moving Average

After a stumble in the market that brought LU to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.96% of loss for the given period.

Volatility was left at 8.22%, however, over the last 30 days, the volatility rate increased by 4.61%, as shares surge +26.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -37.91% lower at present.

During the last 5 trading sessions, LU rose by +4.24%, which changed the moving average for the period of 200-days by -33.37% in comparison to the 20-day moving average, which settled at $2.75. In addition, Lufax Holding Ltd ADR saw 106.65% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for LU

Current profitability levels for the company are sitting at:

  • 0.03 for the present operating margin
  • 0.51 for the gross margin

The net margin for Lufax Holding Ltd ADR stands at -0.03. The total capital return value is set at 0.0. Equity return is now at value -0.67, with -0.22 for asset returns.

Based on Lufax Holding Ltd ADR (LU), the company’s capital structure generated 0.35 points at debt to capital in total, while cash flow to debt ratio is standing at 0.25. The debt to equity ratio resting at 0.53. The interest coverage ratio of the stock is 0.09.

Currently, EBITDA for the company is 2.1 billion with net debt to EBITDA at 10.33. When we switch over and look at the enterprise to sales, we see a ratio of 0.82. The receivables turnover for the company is 4.03for trailing twelve months and the total asset turnover is 0.11.

Conclusion

In summary, Lufax Holding Ltd ADR (LU) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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