Lufax (LU) Soars 2.65% on BNP Paribas Purchase

Lufax (LU) shares surged 2.65% today, marking the second consecutive day of gains, with a total increase of 6.16% over the past two days. The stock price reached its highest level since March 2025, despite an intraday decline.

The strategy of buying LU shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.47% annualized return and a 21.98% peak-to-trough gain. However, it underperformed the market by 1.53 percentage points and had a maximum drawdown of -11.47%, indicating it was not a robust strategy amid market downturns.

One of the key factors driving Lufax's recent stock price increase is the significant purchase by BNP Paribas Financial Markets. The financial institution acquired 856,066 shares of Lufax Holding Ltd, contributing to a 3.3% rise in the stock price. This acquisition underscores the confidence of major financial players in Lufax's potential for growth.

Lufax's stock price has shown resilience amidst mixed Q3 results and economic headwinds. The company's performance during this period has been a subject of investor scrutiny, with the mixed results reflecting the broader economic challenges. Despite these headwinds, Lufax has managed to maintain investor interest, as evidenced by the recent stock price movements.

Analyst activity has also played a role in shaping investor sentiment towards Lufax. BofA recently raised its target price for Lufax to $3.18 while maintaining a neutral stance. This adjustment, while not overly bullish, indicates a recognition of the company's potential and could influence investor decisions, contributing to the stock's upward trajectory.

Additionally, Lufax received a notice from the NYSE regarding the late filing of its annual report on Form 20-F. This regulatory issue could impact investor confidence and stock valuation, as timely reporting is crucial for maintaining transparency and trust with shareholders. However, the recent stock price performance suggests that investors may be looking beyond this short-term setback, focusing instead on the company's long-term prospects.