LexinFintech Shares Plunge 3.56% Despite Record Q1 Net Income

Lexinfintech (LX) shares rose 0.14% today, marking the second consecutive day of gains, with a total increase of 1.15% over the past two days. However, the share price fell to its lowest level since April 2025 today, with an intraday decline of 3.56%.

The strategy of buying Lexinfintech (LX) shares after they reached a recent low and holding for 1 week yielded an average annual return of 20.6% over the past 5 years, outperforming the market by 6.28% annually. This indicates a solid long-term holding strategy could have been profitable for LX shares. However, it's important to note that this strategy may not guarantee future returns, as market conditions and other factors can change over time. Investors should consider their own risk tolerance and investment goals before making any investment decisions.

On June 27th, Wall Street Zen downgraded shares of LexinFintech from a "strong-buy" rating to a "buy" rating. This change in analyst rating could influence investor perception and impact stock price. The downgrade may have contributed to the recent volatility in LexinFintech's stock price, as investors reassess their positions based on the revised outlook.

Despite the recent downgrade, LexinFintech Holdings Ltd reported a record high for Q1 2025 in net income. This positive financial performance is a strong indicator of the company's robust growth and profitability. The record net income could help mitigate the impact of the rating change and provide a foundation for future stock price appreciation. Investors may view this financial milestone as a sign of the company's resilience and long-term potential, potentially offsetting the negative sentiment from the rating downgrade.