What happened
Shares of the Chinese fintech company FinVolution Group (FINV -1.02%) were trading more than 11% down midmorning after a big day of gains yesterday. An analyst from Citigroup also upgraded the company's stock today.
So what
FinVolution, a fintech platform in China that connects borrowers with financial institutions, reported its fourth-quarter and full-year results from 2020 yesterday.
The company reported the equivalent of $284 million of revenue and $76.2 million in net income in the fourth quarter of 2020, both up significantly from the fourth quarter of 2019.
Image source: Getty Images.
For the full year, FinVolution reported the equivalent of nearly $1.2 billion in revenue, up nearly 27% from 2019, and net income of more than $301 million, down 17% from 2019.
This morning, Citigroup analyst Daphne Poon upgraded the company from a neutral to a buy rating and also increased her price target from $5.72 to $7 per share.
Now what
FinVolution saw its stock price climb roughly 93% yesterday and currently trades at $8.68 per share, well above Poon's price target.
The company has given guidance projecting loan volume in 2021 to significantly exceed loan growth in 2020, so FinVolution looks to be in good shape, but it may have overheated a little bit yesterday.
