Lufax (NYSE:LU) Trading Up 7% – Time to Buy?

Shares of Lufax Holding Ltd. Sponsored ADR (NYSE:LU) were up 7% on Thursday . The stock traded as high as $2.13 and last traded at $2.0750. Approximately 966,459 shares traded hands during mid-day trading, a decline of 32% from the average daily volume of 1,418,987 shares. The stock had previously closed at $1.94.

Lufax News Roundup

Here are the key news stories impacting Lufax this week:

• Neutral Sentiment: JPMorgan initiated coverage on LU with a Neutral rating and a $2.00 price target, signaling limited upside from current levels and providing an analyst anchor but not a bullish catalyst. JPMorgan Coverage
• Negative Sentiment: Multiple law firms have filed or announced class actions and are soliciting lead plaintiffs against Lufax, increasing legal risk, potential future settlement costs and reputational damage that can pressure the share price. Representative filings and solicitations include notices from Rosen Law Firm and others. Rosen Notice Hagens Berman Filing
• Negative Sentiment: Some complaints specifically allege inadequate disclosures and cite the company’s firing of an auditor who purportedly raised red flags, which heightens governance and internal-control concerns that investors view as a material risk. Expect continued downward pressure until clarity on allegations, regulatory or auditor developments, or company responses emerge. SueWallSt Disclosure Scrutiny

Analysts Set New Price Targets

Several analysts have weighed in on LU shares. JPMorgan Chase & Co. started coverage on Lufax in a research report on Friday. They issued a “neutral” rating and a $2.00 price objective for the company. Wall Street Zen downgraded Lufax from a “hold” rating to a “sell” rating in a research report on Saturday, February 21st. One investment analyst has rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Sell” and an average target price of $2.00.

Lufax Stock Down 6.7%

The company has a market cap of $1.64 billion, a P/E ratio of -2.43 and a beta of 0.76. The business has a fifty day moving average of $2.30 and a 200 day moving average of $2.68.

Lufax (NYSE:LU) last announced its earnings results on Tuesday, February 17th. The company reported ($1.19) EPS for the quarter. The company had revenue of $724.89 million during the quarter. On average, sell-side analysts anticipate that Lufax Holding Ltd. Sponsored ADR will post -0.41 EPS for the current fiscal year.

Hedge Funds Weigh In On Lufax

Hedge funds and other institutional investors have recently made changes to their positions in the business. Scientech Research LLC bought a new position in shares of Lufax during the third quarter valued at approximately $46,000. Hudson Bay Capital Management LP bought a new position in shares of Lufax during the second quarter valued at approximately $58,000. Headlands Technologies LLC raised its holdings in shares of Lufax by 245.1% during the second quarter. Headlands Technologies LLC now owns 26,928 shares of the company’s stock valued at $75,000 after acquiring an additional 19,126 shares in the last quarter. Profund Advisors LLC grew its stake in Lufax by 26.1% in the third quarter. Profund Advisors LLC now owns 31,714 shares of the company’s stock worth $129,000 after purchasing an additional 6,565 shares during the period. Finally, Virtu Financial LLC purchased a new stake in Lufax in the fourth quarter worth $96,000. Institutional investors own 69.14% of the company’s stock.

Lufax Company Profile

Lufax (NYSE: LU) is a leading provider of online wealth management and personal finance services in China. Established in 2011 as a spin-off from Ping An Insurance (Group) Company of China, Lufax has developed a digital ecosystem designed to match retail and institutional investors with a diverse array of financial products. The company went public on the New York Stock Exchange in October 2020, underscoring its ambition to expand beyond its domestic market.

The firm’s core business activities include peer-to-peer lending, consumer finance, supply chain and small-business lending, as well as online asset management.