Luckin Coffee (OTCMKTS:LKNCY) Sees Unusually-High Trading Volume Following Strong Earnings

Luckin Coffee Inc. Sponsored ADR (OTCMKTS:LKNCY) shares saw an uptick in trading volume on Monday after the company announced better than expected quarterly earnings. 4,081,653 shares were traded during trading, an increase of 169% from the previous session’s volume of 1,519,885 shares.The stock last traded at $37.00 and had previously closed at $35.00.

The company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.60 by $0.04. Luckin Coffee had a net margin of 6.74% and a return on equity of 25.48%.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on LKNCY. Zacks Research raised Luckin Coffee from a “strong sell” rating to a “hold” rating in a research report on Monday, April 6th. Jefferies Financial Group assumed coverage on Luckin Coffee in a research report on Tuesday, June 9th. They set a “buy” rating and a $43.60 target price for the company. Finally, The Goldman Sachs Group set a $49.00 price target on shares of Luckin Coffee and gave the company a “buy” rating in a research report on Sunday, June 21st. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $48.20.

Luckin Coffee Stock Performance

The company has a market capitalization of $10.61 billion, a P/E ratio of 23.13 and a beta of -0.33. The company has a 50-day simple moving average of $31.52 and a 200 day simple moving average of $33.15.

Luckin Coffee Company Profile

Luckin Coffee Inc is a China-based coffeehouse chain that combines a digitally driven ordering platform with a network of physical outlets. The company’s mobile app and in-store kiosks enable customers to place orders for takeaway or delivery, while its proprietary supply chain supports rapid store expansion and consistent product quality. Luckin’s retail portfolio includes “grab-and-go” pickup points, delivery-only kitchens and full-service cafés designed to meet the varied needs of urban consumers.

Luckin’s menu features a broad range of espresso-based drinks, including lattes, Americanos and cold brews, complemented by tea-based beverages, fruit juices and a selection of light food items such as sandwiches and pastries.