Uxin Limited [UXIN] Revenue clocked in at $87.60 million, up 280.52% YTD: What’s Next?

Uxin Limited [NASDAQ: UXIN] loss -7.78% or -0.28 points to close at $3.32 with a heavy trading volume of 2452692 shares. The company report on July 13, 2021 that Uxin Announces Closing of First Tranche of Financing Transaction for US$100 million and Changes to the Board.

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Uxin Limited (“Uxin” or the “Company”) (NASDAQ: UXIN), a leading nationwide online used car dealer in China, announced the closing of the first tranche of its financing transaction of up to US$315 million announced on June 15, 2021, pursuant to which the Company has issued a total of 291,290,416 senior convertible preferred shares, equivalent to 97,096,805 American Depositary Shares (“ADSs”) of the Company, to NIO Capital and Joy Capital for an aggregate purchase amount of US$100 million. The Company’s convertible notes holders, including 58.com, TPG and Warburg Pincus, have converted their convertible notes in an aggregate principal amount of US$69 million into 66,990,291 Class A ordinary shares of the Company, equivalent to 22,330,097 ADSs. Concurrently, more than ten important investors, including NIO Capital, Joy Capital and the above-mentioned convertible notes holders have agreed not to sell their shares of the Company for a period of nine months starting July 12, 2021. Closings of the remaining tranches are subject to the terms and conditions stipulated in the agreements.

In addition, Uxin announced changes to its Board of Directors (the “Board”) pursuant to the arrangements stipulated in the agreements. Mr. William Bin Li and Mr. Erhai Liu have been appointed as directors of the Board, and Mr. Cheng Lu and Dr. Zhuang Yang have been appointed as independent directors of the Board, effective on July 12, 2021. Concurrently, Mr. Cheng Cheung Lun Julian, Mr. Qiang Chang Sun, Mr. Lin Cong, Mr. Muyuan Wang, Mr. Shun Lam Steven Tang and Mr. Yong Zhong Huang have resigned from their positions on the Board. Mr. Shun Lam Steven Tang and Mr. Yong Zhong Huang have also stepped down as members of the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee of the Board, effective on July 12, 2021.

It opened the trading session at $3.572, the shares rose to $3.60 and dropped to $3.29, the range by which the price of stock traded the whole day. The daily chart for UXIN points out that the company has recorded 201.82% gains over the past six months. However, it is still -361.11% lower than its most recent low trading price.

If we look at the average trading volume of 14.45M shares, UXIN reached to a volume of 2452692 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Uxin Limited [UXIN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UXIN shares is $2.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UXIN stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for Uxin Limited shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on October 23, 2019. While these analysts kept the previous recommendation, Credit Suisse raised their target price to Outperform. The new note on the price target was released on March 12, 2019, representing the official price target for Uxin Limited stock.

The Average True Range (ATR) for Uxin Limited is set at 0.42, with the Price to Sales ratio for UXIN stock in the period of the last 12 months amounting to 12.06.

Trading performance analysis for UXIN stock

Uxin Limited [UXIN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.05. With this latest performance, UXIN shares dropped by -15.74% in over the last four-week period, additionally plugging by 201.82% over the last 6 months – not to mention a rise of 118.42% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UXIN stock in for the last two-week period is set at 42.47, with the RSI for the last a single of trading hit 38.52, and the three-weeks RSI is set at 46.06 for Uxin Limited [UXIN]. The present Moving Average for the last 50 days of trading for this stock 3.70, while it was recorded at 3.49 for the last single week of trading, and 1.87 for the last 200 days.

Uxin Limited [UXIN]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Uxin Limited [UXIN] shares currently have an operating margin of -70.66 and a Gross Margin at +56.59. Uxin Limited’s Net Margin is presently recorded at -83.51.

Return on Total Capital for UXIN is now -37.58, given the latest momentum, and Return on Invested Capital for the company is -55.87. Return on Equity for this stock declined to -284.96, with Return on Assets sitting at -24.84. When it comes to the capital structure of this company, Uxin Limited [UXIN] has a Total Debt to Total Equity ratio set at 542.42. Additionally, UXIN Total Debt to Total Capital is recorded at 84.43, with Total Debt to Total Assets ending up at 47.27. Long-Term Debt to Equity for the company is recorded at 410.07, with the Long-Term Debt to Total Capital now at 63.83.

Receivables Turnover for the company is 0.69 with a Total Asset Turnover recorded at a value of 0.30.Uxin Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 0.80.

An analysis of insider ownership at Uxin Limited [UXIN]

There are presently around $198 million, or 38.30% of UXIN stock, in the hands of institutional investors. The top three institutional holders of UXIN stocks are: WARBURG PINCUS LLC with ownership of 37,399,103, which is approximately 0% of the company’s market cap and around 16.12% of the total institutional ownership; WELLS FARGO & COMPANY/MN, holding 10,121,028 shares of the stock with an approximate value of $33.6 million in UXIN stocks shares; and HILLHOUSE CAPITAL ADVISORS, LTD., currently with $7.63 million in UXIN stock with ownership of nearly 0% of the company’s market capitalization.

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Positions in Uxin Limited stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 25 institutional holders increased their position in Uxin Limited [NASDAQ:UXIN] by around 3,870,250 shares. Additionally, 17 investors decreased positions by around 1,298,095 shares, while 7 investors held positions by with 54,521,612 shares. The mentioned changes placed institutional holdings at 59,689,957 shares, according to the latest SEC report filing. UXIN stock had 14 new institutional investments in for a total of 2,342,851 shares, while 7 institutional investors sold positions of 172,850 shares during the same period.

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