LexinFintech Raises Dividend 76.4%, Analysts Predict 80% Upside, GuruFocus Suggests 52% Downside.

LexinFintech Holdings Ltd (LX) raised its dividend by 76.4% to $0.194 per ADS. Wall Street analysts predict a potential upside of nearly 80% with an average price target of $11.53. However, GuruFocus GF Value suggests a possible downside of approximately 52%. The consensus from six brokerage firms places LX in a favorable position with an average brokerage recommendation of 1.5, denoting a "Buy" rating.

LexinFintech Holdings Ltd (LX) recently announced a significant increase in its dividend, raising it by 76.4% to $0.194 per ADS. This move comes after the company reported robust second quarter earnings, with net income rising to CNY 511.4 million and a dividend of US$0.097 per share, payable in September 2025 [1]. The company's dividend payout ratio has increased to 30%, signaling management's confidence in the company's financial health and future prospects.

Analysts have responded positively to the dividend increase and the company's overall performance. Wall Street analysts predict a potential upside of nearly 80%, with an average price target of $11.53. This optimism is driven by LexinFintech's strategic shift towards high-margin tech services and improved asset quality, supported by AI-driven risk models [3]. However, GuruFocus GF Value suggests a possible downside of approximately 52%, highlighting the importance of considering both optimistic and pessimistic views.

The consensus from six brokerage firms places LX in a favorable position, with an average brokerage recommendation of 1.5, denoting a "Buy" rating. This recommendation is based on the company's strong earnings growth, disciplined risk management, and operational efficiency, despite modest revenue fluctuations [1].

In the short term, the stock price has been volatile, with a gain of 6.08% on Monday, August 11, 2025, rising from $6.41 to $6.80. However, technical indicators suggest a potential downfall in the next three months, with a predicted price range of $4.61 to $5.60 [2]. Despite this, the buy signal from the short-term Moving Average indicates further potential gains.

Investors should carefully consider both the positive and negative signals surrounding LexinFintech Holdings Ltd. The company's dividend increase and strong earnings growth present attractive opportunities, but the short-term technical indicators and potential downside risks should not be ignored.

References:
[1] https://simplywall.st/stocks/us/diversified-financials/nasdaq-lx/lexinfintech-holdings/news/why-lexinfintech-holdings-lx-is-up-104-after-doubling-q2-pro
[2] https://stockinvest.us/stock/LX
[3] https://www.ainvest.com/news/lexinfintech-q2-2025-earnings-prudent-turnaround-shareholder-friendly-measures-driving-long-term-2508/