Lufax Holding Ltd ADR [LU] is -15.96% lower this YTD. Is it still time to buy?

Lufax Holding Ltd ADR [NYSE: LU] loss -1.53% on the last trading session, reaching $2.58 price per share at the time. The company report on December 15, 2023 at 4:30 PM that Lufax Announces Receipt of Notice Regarding NYSE Continued Listing Standards and Effectiveness of its ADS Ratio Change.

Lufax Holding Ltd (“Lufax” or the “Company”) (NYSE: LU and HKEX: 6623), a leading financial services enabler for small business owners in China, today announced that it received a letter from the New York Stock Exchange (the “NYSE”) dated November 30, 2023, notifying the Company that it is below the NYSE’s continued listing standards due to the trading price of Lufax’s American depositary shares (the “ADSs”). The notice had no immediate impact on the listing of the Company’s ADSs, which will continue to be listed and traded on the NYSE, subject to the Company’s compliance with other NYSE continued listing standards and other rights of the NYSE to delist the ADSs. The NYSE notification does not affect the Company’s business operations, its U.S. Securities and Exchange Commission reporting requirements or contractual obligations.

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Pursuant to Section 802.01C of the NYSE’s Listed Company Manual, a company will be considered to be below compliance standards if the average closing price of its security as reported on the consolidated tape is less than US$1.00 over a consecutive 30 trading-day period. The Company has six months (the “Cure Period”) following receipt of the notice to regain compliance with the minimum share price requirement. The Company can regain compliance at any time during the Cure Period if on the last trading day of any calendar month during the Cure Period the Company has a closing share price of at least US$1.00 per ADS and an average closing share price of at least US$1.00 per ADS over the 30 trading-day period ending on the last trading day of that month. In the event that at the expiration of the six-month Cure Period, both a US$1.00 per ADS closing share price on the last trading day of the Cure Period and a US$1.00 per ADS average closing share price over the 30 trading-day period ending on the last trading day of the Cure Period are not attained, the NYSE will commence suspension and delisting procedures.

Lufax Holding Ltd ADR represents 573.00 million in outstanding shares, while the company has a total market value of $1.48 billion with the latest information. LU stock price has been found in the range of $2.535 to $2.63.

If compared to the average trading volume of 7.21M shares, LU reached a trading volume of 3001885 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 Lufax Holding Ltd ADR [LU]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LU shares is $4.49 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LU stock is a recommendation set at 2.81. 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.

UBS have made an estimate for Lufax Holding Ltd ADR shares, keeping their opinion on the stock as Sell, with their previous recommendation back on August 24, 2023.

The Average True Range (ATR) for Lufax Holding Ltd ADR is set at 0.20, with the Price to Sales ratio for LU stock in the period of the last 12 months amounting to 0.26. The Price to Book ratio for the last quarter was 0.12, with the Price to Cash per share for the same quarter was set at 13.89.

Trading performance analysis for LU stock

Lufax Holding Ltd ADR [LU] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.83. With this latest performance, LU shares dropped by -25.64% in over the last four-week period, additionally sinking by -60.43% over the last 6 months – not to mention a drop of -73.13% 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 LU stock in for the last two-week period is set at 32.86, with the RSI for the last a single of trading hit 28.49, and the three-weeks RSI is set at 35.39 for Lufax Holding Ltd ADR [LU]. The present Moving Average for the last 50 days of trading for this stock 3.45, while it was recorded at 2.72 for the last single week of trading, and 5.26 for the last 200 days.

Lufax Holding Ltd ADR [LU]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Lufax Holding Ltd ADR [LU] shares currently have an operating margin of +21.41 and a Gross Margin at +73.84. Lufax Holding Ltd ADR’s Net Margin is presently recorded at +12.56.

Return on Total Capital for LU is now 10.25, given the latest momentum, and Return on Invested Capital for the company is 8.11. Return on Equity for this stock inclined to 9.26, with Return on Assets sitting at 2.43. When it comes to the capital structure of this company, Lufax Holding Ltd ADR [LU] has a Total Debt to Total Equity ratio set at 57.00. Additionally, LU Total Debt to Total Capital is recorded at 36.30, with Total Debt to Total Assets ending up at 15.21. Long-Term Debt to Equity for the company is recorded at 8.19, with the Long-Term Debt to Total Capital now at 5.22.

Reflecting on the efficiency of the workforce at the company, Lufax Holding Ltd ADR [LU] managed to generate an average of $142,415 per employee. Receivables Turnover for the company is 5.69 with a Total Asset Turnover recorded at a value of 0.19.

Lufax Holding Ltd ADR [LU]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for LU. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Lufax Holding Ltd ADR go to -8.55%.

An analysis of Institutional ownership at Lufax Holding Ltd ADR [LU]

The top three institutional holders of LU stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in LU stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in LU stock with ownership which is approximately 5.8325%.