LexinFintech (NASDAQ:LX) Announces Earnings Results

LexinFintech (NASDAQ:LX) issued its quarterly earnings results on Monday. The company reported $0.10 EPS for the quarter, FiscalAI reports. LexinFintech had a net margin of 12.72% and a return on equity of 14.36%. The business had revenue of $479.95 million for the quarter.

Here are the key takeaways from LexinFintech’s conference call:

• Lexin said its diversified ecosystem is now accounting for nearly 50% of total loan volume, with installment e-commerce, offline inclusive finance and fintech empowerment growing faster than the core online loan business and becoming new growth drivers.
• First-quarter operating performance was solid, with loan volume up 15.9% QoQ and 12.2% YoY to RMB 57.9 billion, while active users rose to 5.17 million and net profit was RMB 201 million.
• Management highlighted improving asset quality, saying total-asset delinquency fell about 7% from Q4, and FPD30 on new loans is expected to decline about 6%, supported by tighter risk models and better customer screening.
• The company’s fintech empowerment business gained traction through its Yunxi Technology PRO solution, which connects traffic platforms and financial institutions; management said this segment is growing quickly but revenue recognition is still gradual.
• For the second quarter, Lexin expects loan originations to remain relatively stable as macro uncertainty persists, while it continues to prioritize prudent risk control, expense discipline, and gradual improvement in its business mix.

LexinFintech Price Performance

Shares of LX opened at $1.96 on Tuesday. The stock has a market capitalization of $328.30 million, a price-to-earnings ratio of 1.50 and a beta of 0.83. LexinFintech has a 1 year low of $1.79 and a 1 year high of $7.99. The business’s 50 day simple moving average is $2.20 and its 200-day simple moving average is $2.85. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.89 and a quick ratio of 1.89.

LexinFintech Announces Dividend

The company also recently disclosed a dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Friday, April 24th will be issued a dividend of $0.188 per share. This represents a dividend yield of 1,757.0%. The ex-dividend date of this dividend is Friday, April 24th. LexinFintech’s dividend payout ratio is 22.90%.

Institutional Trading of LexinFintech

Several hedge funds have recently modified their holdings of LX. Goldman Sachs Group Inc. raised its holdings in shares of LexinFintech by 201.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,482,060 shares of the company’s stock worth $14,954,000 after acquiring an additional 991,075 shares in the last quarter. Quantbot Technologies LP purchased a new stake in LexinFintech during the 2nd quarter valued at $107,000. Alliancebernstein L.P. raised its holdings in LexinFintech by 4.1% during the 2nd quarter. Alliancebernstein L.P. now owns 3,865,830 shares of the company’s stock valued at $27,873,000 after buying an additional 150,511 shares during the period. Canada Pension Plan Investment Board raised its holdings in LexinFintech by 41.3% during the 2nd quarter. Canada Pension Plan Investment Board now owns 531,900 shares of the company’s stock valued at $3,835,000 after buying an additional 155,400 shares during the period. Finally, Seldon Capital LP raised its holdings in LexinFintech by 61.9% during the 2nd quarter. Seldon Capital LP now owns 657,686 shares of the company’s stock valued at $4,742,000 after buying an additional 251,537 shares during the period.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “hold (c)” rating on shares of LexinFintech in a research note on Friday, March 27th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $3.50.

About LexinFintech

LexinFintech Holdings Ltd. (NASDAQ: LX) is a China-based consumer finance and digital banking platform primarily serving young, underbanked consumers. The company’s core offering is point-of-sale installment financing, enabling eligible customers to split purchases into fixed monthly payments with transparent fees. Leveraging proprietary data analytics and credit scoring models, LexinFintech underwrites consumer loans for online purchases and provides credit lines that support a variety of retail and e-commerce transactions.

In addition to its flagship installment loan service, LexinFintech has developed wealth management and fintech-as-a-service products.