Luckin Coffee (OTCMKTS:LKNCY) Shares Down 5.8% on Disappointing Earnings

Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY)’s stock price dropped 5.8% during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $37.44 and last traded at $37.69. Approximately 1,561,755 shares changed hands during trading, a decline of 30% from the average daily volume of 2,218,015 shares. The stock had previously closed at $40.00.

The company reported $0.64 earnings per share for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.01). The company had revenue of $2.15 billion for the quarter, compared to analysts’ expectations of $1.94 billion. Luckin Coffee had a net margin of 9.59% and a return on equity of 36.80%.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on LKNCY shares. Wall Street Zen cut shares of Luckin Coffee from a “buy” rating to a “hold” rating in a research note on Friday, August 8th. Macquarie set a $52.00 target price on shares of Luckin Coffee in a report on Friday, September 5th. Finally, Dbs Bank raised Luckin Coffee to a “moderate buy” rating in a research note on Thursday, August 14th. One research analyst has rated the stock with a Buy rating, According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $52.00.

Luckin Coffee Stock Performance

The firm has a market capitalization of $10.20 billion, a PE ratio of 20.43 and a beta of -0.29. The company has a fifty day moving average price of $39.24 and a 200-day moving average price of $37.08.

Luckin Coffee Company Profile

Luckin Coffee Inc offers retail services of freshly brewed drinks, and pre-made food and beverage items in the People's Republic of China. It offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and Mocha, as well as specialty coffee based on market and seasonal trends; coconut milk latte products; tea drinks; pre-made beverages; and pre-made food items, such as pastries, sandwiches, and snacks.