In a move suggesting rising confidence in the stock, 360 Finance, Inc. (NASDAQ: QFIN) has said the company and its major shareholder, FountainVest Partners, as well as the board Chairman Hongyi Zhou would raise their holding in the stock over the next 12 months by up to $60 million.
This comes in the backdrop of better-than-expected revenues in the third quarter, backed by a steady increase in loan originations. Despite relatively consistent earnings performance, the stock has taken a beating due to unfavorable market conditions.
The latest announcement is an indication that the management feels the stock is highly undervalued, given its upside potential and stable growth. QFIN stock ended Wednesday’s trading session up almost 9%.
Zhou, who is also the CEO of internet security firm Qihoo 360, said in a statement, “This reflects our confidence in the company’s business prospects and our long-term commitment to its strategy. I’m proud of the achievements the company has made over the past few years in serving inclusive finance.”
360 Finance is a spin-off of Qihoo 360, which is one of the largest internet companies in China.
Last month, the Chinese fintech company had inked a deal with Ruby Finance Investment, which is the investment arm of FountainVest Partners. As part of the deal, the latter purchased over 11.5 million ADS of 360 Finance stock from multiple holders. Continued collaboration with FountainVest is likely to ensure sustained investment flow in the coming quarters.
360 Finance facilitates the delivery of unsecured, online loans to borrowers, mainly for consumption-spending and as a supplement to credit cards. Most of the funding comes from financial institution partners who serve the borrowers through the company’s digital platform.
The company had earlier this year announced its plans to enter into the highly-competitive group buying e-commerce sector. Though there have been uncertainties around this ambitious move, the latest reports indicate that talks are heading in the right direction.
Listen to on-demand earnings calls and hear how management responds to analysts’ questions
Key takeaways from General Mills’ Q3 2023 earnings report
Shares of General Mills Inc. (NYSE: GIS) were up nearly 3% on Thursday after the company delivered better-than-expected results for the third quarter of 2023 and raised its full-year guidance
FIVE Stock: Five Below is likely to continue the good show this year
For Five Below Inc. (NASDAQ: FIVE), the holiday season was more rewarding than expected as the high inflation and stressed personal finances made customers seek value. Earlier, the discount store
Earnings: Chewy (CHWY) swings to profit in Q4 on higher revenues
Chewy Inc. (NYSE: CHWY) has reported higher sales for the fourth quarter of 2022. Reflecting the strong top-line growth, the pet food company turned to profit from a loss last