Luckin Coffee (OTCMKTS:LKNCY) Shares Gap Up on Strong Earnings

Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY) shares gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $31.06, but opened at $32.94. Luckin Coffee shares last traded at $33.01, with a volume of 541,250 shares changing hands.

The company reported $0.24 earnings per share for the quarter, beating analysts’ consensus estimates of $0.14 by $0.10. Luckin Coffee had a net margin of 7.23% and a return on equity of 28.50%.

Wall Street Analyst Weigh In

Separately, Zacks Research raised shares of Luckin Coffee from a “strong sell” rating to a “hold” rating in a research report on Monday, April 6th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $52.00.

Luckin Coffee Trading Up 6.2%

The business has a fifty day moving average of $33.88 and a 200-day moving average of $35.45. The firm has a market cap of $9.46 billion, a PE ratio of 20.62 and a beta of -0.37.

About Luckin Coffee

Luckin Coffee Inc is a China-based coffeehouse chain that combines a digitally driven ordering platform with a network of physical outlets. The company’s mobile app and in-store kiosks enable customers to place orders for takeaway or delivery, while its proprietary supply chain supports rapid store expansion and consistent product quality. Luckin’s retail portfolio includes “grab-and-go” pickup points, delivery-only kitchens and full-service cafés designed to meet the varied needs of urban consumers.

Luckin’s menu features a broad range of espresso-based drinks, including lattes, Americanos and cold brews, complemented by tea-based beverages, fruit juices and a selection of light food items such as sandwiches and pastries.