LexinFintech Announces $50M Share Repurchase Program, CEO Invests $10M

LexinFintech Holdings has announced a share repurchase program to buy back up to $50 million worth of shares over the next year, with CEO Xiao Wenjie planning to invest up to $10 million in ADSs. This move follows strong financial performance, including a 104.7% YoY increase in Non-GAAP EBIT in Q1 2025 and an increased dividend payout ratio from 25% to 30% of net profit. The share repurchase program could result in a potential total shareholder return of approximately 13%.

LexinFintech Holdings Ltd., a leading technology-empowered personal financial service enabler in China, has announced a share repurchase program that authorizes the company to buy back up to $50 million worth of its shares over the next year. This move comes on the heels of strong financial performance, including a 104.7% year-over-year (YoY) increase in Non-GAAP EBIT in Q1 2025 and an increased dividend payout ratio from 25% to 30% of net profit [1].

The share repurchase program, authorized by the company's board of directors, reflects confidence in LexinFintech's business fundamentals and growth opportunities. The program allows the company to repurchase shares through various methods, depending on market conditions, and will be periodically reviewed and adjusted by the board [2].

CEO Jay Wenjie Xiao has also announced his intention to use personal funds to purchase up to $10 million worth of the company's American depository shares (ADSs) within the same timeframe. Mr. Xiao's decision to invest in the company's ADSs signals strong insider confidence in LexinFintech's prospects [2].

The share repurchase program is expected to enhance shareholder value by returning capital to shareholders. If successful, the program could result in a potential total shareholder return of approximately 13%. However, the announcement may also raise concerns about limited growth opportunities and a shift in capital allocation from new initiatives to share buybacks [1].

References:

[1] https://www.quiverquant.com/news/LexinFintech+Holdings+Ltd.+Announces+%2450+Million+Share+Repurchase+Program
[2] https://www.morningstar.com/news/globe-newswire/9499889/lexinfintech-holdings-ltd-announces-share-repurchase-program