Qudian Inc (NYSE:QD) stock Continues to Fall: What’s The Buzz?

This past Friday the Qudian Inc (NYSE:QD) stock was in the middle of a steady decline and ended the day with losses of as much as 8%. However, investors are possibly a bit confounded by the decline considering the fact that there was no news about the company at all that might have led to that selloff.

In this situation, it might be a good move for investors to perhaps take a look at the company’s fiscal first quarter results that were announced back on June 15, 2021. It should be noted that the results announced by Qudian were unaudited.

In the loan book business, the total number of outstanding borrowers actually went down by as much as 8% on a sequential basis and stood at 3 million. In the quarter that ended on December 31, 2020, the total number of borrowers had been 3.2 million.

Qudian revealed that the drop in the number of borrowers was a consequence of the conservative lending strategy that has been implemented at the company. On the other hand, the total outstanding loan balance from the same business stood at RMB 4.1 billion at the end of the quarter. The represented a drop of 15.1% sequentially.

Market Reaction:

On Friday, QD stock fell 8.37% at $1.86 with more than 3.30 million shares, compared to its average volume of 3.30 million shares. The stock has moved within a range of $1.8600 – 1.9800 after opening the trade at $1.94. Over the past 52-week, the stock has been trading within a range of $1.1700 – 3.8200.