Systematic Alpha Investments LLC buys stake in China’s Fintech leader FinVolution Group
Systematic Alpha Investments LLC, a well-respected institutional investor, made a major move in the fourth quarter by purchasing a new stake in FinVolution Group (NYSE:FINV), according to the company’s most recent disclosure with the Securities and Exchange Commission. The investor used his expert knowledge and financial insight to purchase 34,100 shares of FINV at a whopping $169,000.
FinVolution Group is China’s online consumer finance platform that acts as the bridge between borrowers and financial institutions. Arguably, FinVolution Group is the epitome of fintech excellence due to its technological prowess and expertise in credit risk assessment, fraud detection, big data analytics and artificial intelligence. The company’s growth trajectory seems unencumbered with rosy prospects for the future, relying on its vastly accumulated experience.
This acquisition by Systematic Alpha Investments LLC was validated when FINV started trading on Friday, reaching $3.98 with a trading volume of 49,982 shares compared to its average volume of 870,707. Like other recognized stocks, FINV has experienced share price volatility with 50-day moving average of $4.33 and 200-day moving average of $4.76. However, it is clear that this fluctuating trend has not stopped investors from rallying around this company with hopes of steady returns.
As an active player in the market cap game, FINV boasts a one-year low of $3.40, but is also standing strong as it nears its one-year high of $5.92, expecting more exciting developments that will skyrocket earnings while it supports over $1 billion worth of resources! This goes hand-in-hand with an impressive price-to-earnings ratio of 3.37 along with a success-linked beta of 0.62.
In retrospect, Systematic Alpha Investments LLC made a stunning move that saw them gain valuable equity ownership in one of China’s leading fintech companies. As the market eagerly anticipates the growth of FINV in tandem with their invaluable experience, it is anyone’s guess how bright and lucrative the future will be for FinVolution Group.
Investors flock to FinVolution Group despite rating cut and market volatility amid covid-19 uncertainty
The China-based online consumer finance platform FinVolution Group has attracted a number of institutional investors over the past six months, including SG Americas Securities, which bought $64,000 worth of shares in the fourth quarter of 2019. Counterpoint Mutual Funds increased its stake in the company by 15.5% , and Ritholtz Wealth Management increased by a further 3.2% during the same period. Institutional investors now own about 16.73% of the shares in the firm that connects borrowers with financial institutions through big data, machine learning algorithms and AI-powered credit risk assessment measures. Despite recent rating cuts from Citigroup, which reduced price targets based on a lower rating for the stock from “buy” to “neutral”, UBS Group raised shares of FinVolution Group from a “neutral” to a “buy” rating.
The attractive dividend yield offered by FinVolution Group may have attracted some investors, with the company announcing a new annual dividend to be paid on Friday the 5th. May; However, it remains to be seen whether this will offset any negative sentiment as market volatility continues amid global uncertainty surrounding COVID-19. The firm reported strong earnings results on March 14 with Q4 revenue of $442.21 million and a net margin of 20.40%, along with a strong return on equity of 20.19%.
