Should You Invest in Lufax Holding Ltd ADR (LU) Now?

The 36-month beta value for LU is at 0.87. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 3 rating it as “overweight,” 6 as “hold,” and 1 as “sell.”

The public float for LU is 837.75M, and currently, shorts hold a 1.33% of that float. The average trading volume for LU on September 19, 2024 was 3.10M shares.

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LU) stock’s latest price update

Lufax Holding Ltd ADR (NYSE: LU) has seen a rise in its stock price by 1.59 in relation to its previous close of 2.21. However, the company has experienced a 3.46% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-09-10 that Lufax’s Q2 net loss and interim dividend omission were disappointing, but LU is expected to resume dividend payouts and deliver positive earnings in fiscal 2025. LU’s strategic pivot towards the 100% guarantee business model and consumer finance loans have yielded decent results, considering the take rate improvement and consumer finance loans’ strong growth. My Buy rating for Lufax remains intact, taking into account the potential turnaround next year and the significant progress made with its strategic pivot.

LU’s Market Performance

Lufax Holding Ltd ADR (LU) has experienced a 3.46% rise in stock performance for the past week, with a -15.60% drop in the past month, and a 1.13% rise in the past quarter. The volatility ratio for the week is 2.95%, and the volatility levels for the past 30 days are at 3.77% for LU. The simple moving average for the past 20 days is -1.08% for LU’s stock, with a 17.71% simple moving average for the past 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 -13.14% 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 -27.58% of loss for the given period.

Volatility was left at 3.77%, however, over the last 30 days, the volatility rate increased by 2.95%, as shares sank -17.77% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -21.78% lower at present.

During the last 5 trading sessions, LU rose by +3.46%, which changed the moving average for the period of 200-days by -38.59% in comparison to the 20-day moving average, which settled at $2.25. In addition, Lufax Holding Ltd ADR saw 63.42% 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:

  • -0.04 for the present operating margin
  • 0.51 for the gross margin

The net margin for Lufax Holding Ltd ADR stands at -0.11. The total capital return value is set at -0.0. Equity return is now at value -2.79, with -0.98 for asset returns.

Based on Lufax Holding Ltd ADR (LU), the company’s capital structure generated 0.37 points at debt to capital in total, while cash flow to debt ratio is standing at 0.28. The debt to equity ratio resting at 0.58. The interest coverage ratio of the stock is -0.07.

Currently, EBITDA for the company is 2.1 billion with net debt to EBITDA at -23.99. When we switch over and look at the enterprise to sales, we see a ratio of 1.53. The receivables turnover for the company is 5.99for trailing twelve months and the total asset turnover is 0.1.

Conclusion

In conclusion, Lufax Holding Ltd ADR (LU) has had a better performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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