Hopefully you got into Luckin Coffee Inc. (NASDAQ:LK) early, as today the stock is trading 5.38% or 2.43 points up from last closing price of $45.13, reaching $47.56 at last check. The LK share price has risen in 2 of the last 5 days and is up 130.26% over the past week. It will be exciting to see whether the stock manages to continue increasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -5,975,911 shares, and in total 4.67 million shares valued at $222.124 million were seen changing hands compared with 10.646 million shares valued at $480.468 million recorded at the previous session. You should take into consideration that a falling volume on higher prices causes divergence and may be an early warning about possible changes in LK stock for the next couple of days.
Luckin Coffee Inc. (LK) shares have notched a 3-month gain of about 130.26%, but has still advanced 14.66% year to date. By comparison, the stock sank 0% over the past 12 months, while it jumped 46.48% over the 1 month. The company’s market cap is around $11.11B, with its short interest ratio standing at 2.06%.
In the current trading session for LK, the stock witnessed two major price actions, it rose to a high of $48.39 and was down as much as $46.58 at one point. The high recorded is very low when compared to their 52-week high which is $13.71. The 52-week high is now at -1.56 distance from current price. Their recent low of $48.65 represents a 249.31% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for LK is $32.27, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of Luckin Coffee Inc. earned $-2.3 per share in the trailing 12 months and has a P/E ratio of -20.68. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 32.31 and lower compared to the sector’s average of 38.06. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. LK also has P/S multiple of 23.9. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.89x.
LK‘s last price was up 104.45% as compared to the average trading price of 50 days recorded at $23.26 while enlarging the period to 200 trading days, the average closing price was $30.92. At present, there are 246.15 million in the total number of common shares owned by the public and among those 38.61 million shares have been available to trade. The percentage of shares being held by the company management was 0% while institutions stake was 0%. The company has generated negative returns on equity over the last 12 months (-170.8%). It managed to keep its gross profit margin at 6.5% over the past 12 months.
When assessing the full upside of the LK stock, there is another set of technicals that should be looked into and considered. Its 26.98% gain from moving average of $37.45 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 0 to the stock. With the beta been less than one, this implies that the company shares are theoretically less volatile than the market, something that the traders definitely are keeping an eye on.