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LexinFintech Holdings Ltd. Announces Share Repurchase Program

1. LexinFintech announced a $50 million share repurchase program. 2. CEO plans to buy $10 million worth of shares to signal confidence. 3. Company's EBIT grew 104.7% YoY, indicating strong performance. 4. Dividend payout ratio to increase from 25% to 30% starting 2025. 5. Total shareholder return projected to rise to 13%, attractive for investors.

Shares Buyback
-6.87%Current Return
VS
+0.47%S&P 500
$7.4207/24 07:17 AM EDTEvent Start
$6.9107/25 01:46 PM EDTLatest Updated
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FAQ

Why Bullish?

Share buybacks generally indicate management confidence; similar programs historically uplift stock prices.

How important is it?

The repurchase program and increased dividends would reassure investors, likely boosting share value.

Why Short Term?

Immediate effects from buyback announcement typically influence stock price quickly, as seen with similar initiatives.

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Shenzhen, China, July 24, 2025 (GLOBE NEWSWIRE) -- On July 21, LexinFintech Holdings Ltd. (NASDAQ: LX), a leading technology-empowered personal financial service enabler in China, announced a share repurchase program. Specifically, the board of directors authorized the company to repurchase no more than US$50 million worth of its own shares over the next 12 months; meanwhile, CEO Xiao Wenjie plans to use his personal funds to purchase no more than US$10 million worth of the ADSs to increase his holdings of the company. This repurchase fully demonstrates the long-term confidence of Lexin’s management in the company’s development. Before this, the company’s profit margin has recorded notable quarter-over-quarter growth for four consecutive quarters. In the first quarter of 2025, its Non-GAAP EBIT reached RMB 580 million, up 104.7% year-over-year and 25.3% quarter-over-quarter, marking the highest level in 13 quarters. The management is fully optimistic about its performance guidance, which projects substantial year-over-year growth in 2025 full-year net profit.The company attaches great importance to shareholder returns and has raised its dividend payout ratio twice within the six months since it announced to raise dividend payout ratio in November 2024. Starting from the second half of 2025, the dividend payout ratio will be increased from 25% to 30% of net profit. Analyses indicate that if the repurchase scheme is fully executed and factoring into its current dividend policy, Lexin’s total shareholder return will rise to approximately 13%, placing it at the upper-middle tier of the industry. When viewed alongside its current forward PE (2025e) of less than 4x, Lexin demonstrates compelling investment value.

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