Major Brokerage Firms Issue Research Notes on Lufax Holding Ltd (LU)

Lufax Holding Ltd (NYSE:LU) saw an upside of 1.23% on Wednesday at $7.41 after adding $0.09on Wednesday. The 5-day average trading volume is 6,474,595 shares of the company’s common stock. It has gained $7.89 in the past week. An average of 7,996,569 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 7,638,085.

LU’s 1-month performance is -13.48% or -$1.14 on its low of $7.16 reached on 09/20/21. The company’s shares have touched a 52-week low of $6.95 and high of $20.17. YTD, LU has lost -48.45% or -$6.88. However, the current price is down -63.26%% from the 52-week high price.

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Valuation Metrics

Lufax Holding Ltd (LU) has a trailing price-to-earnings (P/E) ratio of 7.76, compared to 13.92 for the broader industry and 12.41 for the sector, meaning that investors are optimistic about the stock’s future prospects. The company’s PE ratio for the last five years has touched a high of 25.97 and a low of 7.806. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.09 while the price-to-book (PB) in the most recent quarter is 1.29, with the price to cash flow ratio at 18.05.

Financial Health

As well, the company’s long term debt to equity for the quarter ending June 29 was 0.43, while the total debt to equity was 0.43 while for the period ending June 29; Lufax Holding Ltd’s operating margin was 40.60%. The firm’s gross profit as reported stood at $3.4 billion against revenue of $7.54 billion.

The effectiveness of a company’s management is also important for investors when it comes to determining the potential profitability of the investment. Lufax Holding Ltd’s return on assets over the past 12 months stands at 5.70%. Return on investment over the past year is 13.30%, while its return on equity (ROE) trailing 12 months is 18.70%. In comparison, the average ROE for the broader industry over the past year is 4.91.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected LU to announce $0.23 per share in earnings in its latest quarter, but it posted $0.29, representing a 26.10% surprise. EBITDA for the quarter stood at more than $1.2 billion. LU stock balance sheet for the quarter ending June 29 shows that, with total debt at $38.06 billion

Technical Picture

Let’s look briefly at Lufax Holding Ltd (LU) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 21 September was 27.36% to suggest the stock is trending oversold, with historical volatility in this time period at 33.28%.

The stock’s 5-day moving average is $7.51, reflecting a -4.87% or -$0.38 change from its current price. LU is currently trading -18.79% above its 20-day SMA, -38.45% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -22.24% and -49.93% respectively.

Stochastic %K and %D was 8.33% and 10.04% and the average true range (ATR) pointed at 0.40. The RSI (14) points at 33.72%, while the 14-day stochastic is at 8.51% with the period’s ATR at 0.43. The stock’s 9-day MACD Oscillator is pointing at -0.37 and -0.69 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Lufax Holding Ltd (NYSE: LU), Morgan Stanley upgraded it to an Overweight rating. They previously had an Equal-weight rating on the stock. Analysts offering their rating for LU stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate LU as a “sell,”, while 3 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 13 have offered a “buy” rating.

What is LU’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $63.27 and a high of $140.68, with their median price target at $83.99. Looking at these predictions, the average price target given by analysts is for Lufax Holding Ltd (LU) stock is $86.61.


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