Wall Street’s most bullish Qudian Inc. (NYSE:QD) analysts are predicting the share price to blow past $11.7 per share during the next 12 months. The current median share price forecast by them is $7.39, suggesting that the stock could increase 43.22% in that time frame. The average price target of $7.8 calls for a nearly 51.16% increase in the stock price.
Qudian Inc. (QD) trading activity significantly improved as the volume at ready counter increased to 3,731,292 shares versus 1,998,640 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,066,373 shares. The share price rose 2.79% in recent trade and currently has a stock-market value of $1.71B. The shares finished at $5.16, after trading as low as $5 earlier in the session. It hit an intraday high Tuesday at $5.18. The stock is now 29% above against its bear-market low of $4 on October 31, 2018. It has retreated -244.96% since it’s 52-week high of $17.8 reached in March. Now the market price is down -60.43% on the year and up 20.28% YTD.
QD’s 50 day simple moving average (SMA 50) price is $5.06 and its 200-day simple moving average (SMA 200) price is $6.6. The company’s stock currently has a total float of 2.95M shares. Its weekly volatility is hovering around 3.21% and felt 4.73% volatility in price over a month. On the upside, the share price will test short term resistance at around $5.23. On a downside, the stock is likely to find some support, which begins at $5.05. The failure to get near-term support could push it to $4.93.
It had seen a negative analyst call from Macquarie, which downgraded the stock from Outperform to Neutral on August 27. Analysts at Bernstein, shed their positive views on August 23 by lowering it fromOutperform to Mkt Perform. Brokerage firm Needham, looks cautious as they stick to prior recommendation of Buy, in a call on May 22. However, they did change the target price from $20 to $13. Deutsche Bank, released new analyst coverage on April 10, calling the stock is Hold.
When looking at valuations, Qudian Inc. (QD) has a cheap P/E of 5.01x as compared to industry average of 42.96x. Moreover, it trades for 3.95 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.05x price/book and 1.56x price/sales. Compared to others, Qudian Inc. is in a different league with regards to profitability, having net margins of 30.7%. To put some perspective around this, the industry’s average net margin is 6.55%. QD’s ROE is 22.6%, which is also considerably better than the industry’s ROE of 9.05%. It’s also very liquid in the near term, with a current ratio of 2.7. The stock has a debt/capital of 0.47.
Shares of Qudian Inc. (QD) have gained 17% since the company’s last earnings report. Over the past 3 fiscal quarters, Qudian Inc. (NYSE:QD) has topped consensus earnings estimates in 1 quarters (20%), missed earnings in 2 quarters (40%), whereas at 0 occasion EPS met analyst expectations. QD last reported earnings on November 21, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.34 per share, -91.85% change on the same period last year. That was worse than consensus for $0.35. Revenue for the recent quarter stood at $277.75 million, up 27% on last year and below the $617.01 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $304.65 million to $1.38 billion, which should be compared with $1.38 billion generated last year. EPS is seen in a range of $0.27 to $0.55, against the $0.49 reported a year ago.