LX

Dividend Announcement: LexinFintech (NASDAQ: LX) has declared a semi-annual dividend of $0.11 per ADS, with a forward yield of 2.09%, payable on May 16 to shareholders of record as of April 17.

Market Insights: Despite a profit increase, caution is advised regarding LexinFintech's performance, while the financial sector continues to see momentum driven by stocks with high SA Quant Ratings.

Financial Performance: LexinFintech Holdings Ltd. reported a net income of RMB363 million for Q4 2024, marking a 17% increase from the previous quarter and a 54% rise compared to the same period last year, with total loan origination reaching RMB52 billion.

Future Outlook: The company anticipates flat to single-digit growth in total loan origination for 2025 while focusing on enhancing asset quality and profitability, alongside a planned increase in its cash dividend payout ratio to 25% of net income starting January 1, 2025.

Financial Performance: LexinFintech reported a Q4 total operating revenue of RMB 3,659 million, marking a 4.3% increase from the previous quarter, with an adjusted net income per ADS of RMB2.22 for ordinary shareholders.

Market Sentiment: Despite the profit increase, there are concerns regarding hidden risks associated with LexinFintech, leading to cautious optimism among analysts and investors.

U.S. Stock Market Performance: U.S. stocks rose, with the Dow Jones gaining about 1% on Friday, driven by strong earnings reports from several companies, including Semtech Corporation, which saw a 12.7% increase in its shares after exceeding financial expectations.

Notable Stock Gains: Other significant stock movements included Radius Recycling surging 103% due to a merger announcement, Applied Optoelectronics rising 37.7% after a deal with Amazon, and multiple companies like Rubrik and DocuSign also reporting better-than-expected quarterly results, leading to substantial share price increases.

Earnings Report Announcement: LexinFintech Holdings Ltd. will release its unaudited financial results for Q4 and fiscal year 2024 on March 18, 2025, after U.S. market close, followed by a conference call at 10:00 PM Eastern Time.

Company Overview: Lexin is a consumer financial service provider in China that leverages technology and risk management to enhance financing accessibility for young consumers, offering solutions for both consumers and financial institutions.

Financial Sector Inflows: Bank of America reports that the Financials sector has seen a significant inflow of $1.5 billion, marking the longest buying streak in seven weeks among S&P 500 sectors, with overall net buying of U.S. stocks reaching $3.6 billion last week.

Quant Ratings for Financial Stocks: A list of financial stocks with high Quant Ratings from Seeking Alpha includes LexinFintech Holdings and Federal Home Loan Mortgage Corp., while notable holdings in the Financial Select Sector SPDR Fund show Berkshire Hathaway leading with a rating of 4.83.

Overbought Stocks in Financial Sector: Two stocks, LexinFintech Holdings and AppTech Payments Corp, are identified as overbought with RSI values of 70 and 73 respectively, indicating potential caution for momentum-focused investors.

Recent Performance Highlights: LexinFintech's stock surged 76% following a dividend policy amendment, while AppTech Payments saw an 86% increase after securing a $5 million investment and restructuring its board.

Validea's Upgrade on Lexinfintech Holdings: The stock rating for Lexinfintech Holdings Ltd has improved from 70% to 100% based on Joseph Piotroski's value-quant strategy, indicating strong interest due to the company's solid financial fundamentals and valuation.

About Joseph Piotroski and Validea: Joseph Piotroski, an accounting professor, developed a successful stock-selection method that significantly outperformed the S&P 500. Validea utilizes strategies from investment legends to provide stock analysis and model portfolios.

U.S. Stock Market Performance: U.S. stocks showed mixed results with the Dow Jones index dropping over 200 points, while several companies like The J. M. Smucker Company and Hesai Group reported better-than-expected financial results, leading to significant gains in their stock prices.

Notable Stock Gains: Companies such as Embecta Corp, LexinFintech Holdings, and Semtech Corporation experienced substantial increases in their stock values after positive earnings reports and guidance updates, reflecting a generally optimistic sentiment among investors for these firms.

Conference Call Overview: LexinFintech Holdings held its Q3 2024 earnings conference call on November 25, 2024, featuring key executives discussing the company's performance and financial results.

Presentation Format: The CEO, Jay Xiao, delivered his remarks in Chinese, with an English version provided through AI voice technology, while updates on risk management and detailed financial statements were presented by other executives.

Q3 Earnings Overview: Lexinfintech reported stable loan origination of RMB51.0 billion in Q3 2024, a 19.5% year-over-year decrease, but net profit increased by 36.7% to RMB310 million from the previous quarter, with operating revenue growing by 4.4% to RMB3.7 billion.

Future Outlook: The company is focused on reducing funding costs and enhancing asset quality, remains optimistic about government stimulus effects, and plans to revise its dividend policy to increase shareholder value starting in 2025.

Financial Performance: LexinFintech reported a stable loan origination of RMB51.0 billion for Q3 2024, despite a year-over-year decrease of 19.5%. However, net profit increased by 36.7% to RMB310 million, attributed to improved asset quality and reduced funding costs.

Operational Highlights: The company saw a growth in its user base with registered users reaching 223 million, while active users decreased to 4.3 million. An amended dividend policy was approved, increasing the payout ratio to 25% of net profit starting in 2025.

Earnings Reports: Major companies such as Agilent, Bath & Body Works, and Zoom Video Communications are set to report earnings today, with expected stock movements indicated by options prices.

Implied Moves: The article provides a list of companies reporting before and after market close, along with their respective implied price moves based on options trading, highlighting the importance of thorough research due to associated risks.

Earnings Report Announcement: LexinFintech Holdings Ltd. will release its unaudited financial results for Q3 2024 on November 25, 2024, after U.S. market close, followed by an earnings conference call at 9 PM Eastern Time.

Company Overview: Lexin is a consumer financial service provider in China that utilizes technology and risk management to enhance financing accessibility for younger consumers, offering a blend of online and offline services.

Market Performance: The S&P 500 index has shown strength since the U.S. presidential election, with a target near 6,050 based on the modified Bollinger Band.

Support Levels: The index has support at 5,870; closing below this level could shift the outlook to bearish, although further support exists at 5,670, which is not anticipated to be tested soon due to positive seasonal trends approaching Thanksgiving.

Market Performance: The S&P 500 has reached two consecutive new highs, indicating a breakout with no overhead resistance, and the modified Bollinger Bands are expanding, suggesting a target near 6,020.

Technical Analysis: An "island reversal" pattern has formed on the SPX chart, which is considered highly bullish, but could be negated if the index drops to 5,783.

U.S. Stock Market Performance: U.S. stocks declined, with the Dow Jones dropping approximately 300 points on Monday, while several companies like Integra LifeSciences and Neurogene saw significant gains due to positive financial results and investment agreements.

Notable Stock Gains: Companies such as Air Transport Services Group and Disc Medicine experienced substantial stock price increases following acquisition announcements and favorable FDA meetings, respectively, alongside other firms reporting better-than-expected quarterly earnings.

Current Trading Range: The S&P 500 is trading between 5,760 and 5,870 as it anticipates the U.S. presidential election, with a breakout above 5,870 indicating bullish momentum and a drop below 5,670 suggesting bearish conditions.

Volatility Signal: The McMillan volatility band buy signal remains active, with the target set at approximately 5,920, following multiple adjustments to the position since early August.

Current Status of S&P 500 Index: The S&P 500 Index (SPX) has encountered resistance around the 5,860 mark, having stalled out after testing this level six times recently.

Internal Indicators Weakening: Some internal indicators of the SPX are showing signs of weakness, suggesting potential challenges ahead for the index.

S&P 500 Performance: The S&P 500 Index is reaching new all-time highs, with support identified between 5,670 and 5,770, while the +4σ modified Bollinger Band target is currently near 5,900.

Volatility Signal: The McMillan Volatility Band buy signal from early August remains active, also targeting the +4σ Band as a potential goal.