Lufax Holding Ltd ADR [LU] Is Currently 2.88 below its 200 Period Moving Avg: What Does This Mean?

Lufax Holding Ltd ADR [NYSE: LU] gained 2.88% or 0.08 points to close at $2.86 with a heavy trading volume of 5641051 shares. 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.

The daily chart for LU points out that the company has recorded -37.83% loss over the past six months.

If we look at the average trading volume of 6.05M shares, LU reached to a volume of 5641051 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 $4.06 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 2.80. 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.

BofA Securities have made an estimate for Lufax Holding Ltd ADR shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on January 25, 2024. While these analysts kept the previous recommendation, UBS dropped their target price from $1.60 to $1. The new note on the price target was released on August 24, 2023, representing the official price target for Lufax Holding Ltd ADR stock. Previously, the target price had yet another raise to $2.50, while Bernstein analysts kept a Outperform rating on LU stock.

The Average True Range (ATR) for Lufax Holding Ltd ADR is set at 0.14, with the Price to Sales ratio for LU stock in the period of the last 12 months amounting to 0.29. The Price to Book ratio for the last quarter was 0.13, 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] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 11.28. With this latest performance, LU shares gained by 13.49% in over the last four-week period, additionally sinking by -37.83% over the last 6 months – not to mention a drop of -69.18% 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 64.01, with the RSI for the last a single of trading hit 74.23, and the three-weeks RSI is set at 56.76 for Lufax Holding Ltd ADR [LU]. The present Moving Average for the last 50 days of trading for this stock 2.64, while it was recorded at 2.69 for the last single week of trading, and 4.48 for the last 200 days.

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

With the latest financial reports released by the company, Lufax Holding Ltd ADR posted -0.2/share EPS, while the average EPS was predicted by analysts to be reported at 0.12/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -266.70%. 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%.