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SHENZHEN - LexinFintech Holdings Ltd. (NASDAQ:LX), which has seen its stock surge over 350% in the past year, announced Monday a share repurchase program authorizing the buyback of up to $50 million of its shares over the next 12 months.
In addition to the company’s repurchase plan, CEO Xiao Wenjie intends to purchase up to $10 million worth of American Depositary Shares using personal funds.
The China-based financial services company also plans to increase its dividend payout ratio from 25% to 30% of net profit starting in the second half of 2025. This marks the second dividend ratio increase in six months, following an initial raise announced in November 2024.
LexinFintech reported first-quarter 2025 Non-GAAP EBIT of RMB 580 million ($80.5 million), representing a 104.7% year-over-year increase and a 25.3% quarter-over-quarter rise. This quarterly result is the company’s highest in over three years, according to the press release statement.
The financial technology firm has recorded profit margin growth for four consecutive quarters and projects continued profit growth throughout 2025.
LexinFintech provides technology-empowered personal financial services in China. The company currently trades at a forward price-to-earnings ratio of less than 4 times expected 2025 earnings.
In other recent news, LexinFintech Holdings Ltd. announced the authorization of a share repurchase program valued at up to $50 million. This initiative will take place over the next twelve months. The company plans to execute these repurchases through various methods, including open market transactions and privately negotiated deals. This decision comes amidst ongoing market conditions and will adhere to applicable regulations. The repurchase program reflects the company’s strategic financial decisions aimed at enhancing shareholder value. Investors may view this as a significant development, considering the scale of the repurchase. The announcement underscores the company’s commitment to leveraging its financial resources effectively.
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