Luckin Coffee (OTCMKTS:LKNCY) Sees Strong Trading Volume After Earnings Beat

Shares of Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY) saw unusually-strong trading volume on Wednesday following a stronger than expected earnings report. 2,053,329 shares traded hands during mid-day trading, an increase of 47% from the average daily volume of 1,401,532 shares. The stock last traded at $33.48 and had previously closed at $32.90.

The company reported $0.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.06. Luckin Coffee had a net margin of 6.78% and a return on equity of 24.91%. The company had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.72 billion.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Zacks Research downgraded Luckin Coffee from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. BNP Paribas Exane upgraded Luckin Coffee to an “outperform” rating and set a $48.00 price target for the company in a report on Tuesday, September 15th. Two investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and an average price target of $46.87.

Luckin Coffee Stock Up 3.6%

The stock has a market cap of $9.78 billion, a price-to-earnings ratio of 20.30, a price-to-earnings-growth ratio of 0.44 and a beta of -0.32. The stock’s 50 day moving average price is $33.64 and its two-hundred day moving average price is $33.46.

Luckin Coffee Company Profile

Luckin Coffee Inc is a China-based coffeehouse operator that sells freshly prepared coffee, tea-based beverages, fruit drinks and light food. Its menu includes espresso-based drinks, cold beverages, snacks and seasonal products, with orders placed primarily through its mobile application and fulfilled through company-operated locations and delivery or pickup services.

Founded in 2017, Luckin Coffee built its business around a technology-focused, convenience-oriented model that emphasizes mobile ordering, digitally managed stores and delivery.