PDD (NASDAQ:PDD) Trading Down 3.7% – Here’s Why

PDD Holdings Inc. (NASDAQ:PDD)’s stock price was down 3.7% during mid-day trading on Monday . The stock traded as low as $137.80 and last traded at $139.38. Approximately 5,954,163 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 10,715,357 shares. The stock had previously closed at $144.76.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the company. Daiwa America raised PDD to a “strong-buy” rating in a research report on Tuesday, August 27th. Nomura Securities raised shares of PDD to a “strong-buy” rating in a research note on Tuesday, August 27th. Citigroup lowered PDD from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $194.00 to $120.00 in a research note on Tuesday, August 27th. Jefferies Financial Group cut their price objective on PDD from $193.00 to $151.00 and set a “buy” rating on the stock in a research report on Monday, August 26th. Finally, Benchmark decreased their price objective on shares of PDD from $230.00 to $185.00 and set a “buy” rating for the company in a report on Tuesday, August 27th. One research analyst has rated the stock with a hold rating, nine have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $182.40.

PDD Trading Down 5.7 %

The company’s 50 day simple moving average is $121.88 and its two-hundred day simple moving average is $130.24. The company has a quick ratio of 2.11, a current ratio of 2.11 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $187.81 billion, a price-to-earnings ratio of 18.06, a P/E/G ratio of 0.35 and a beta of 0.71.

PDD (NASDAQ:PDD) last issued its quarterly earnings results on Monday, August 26th. The company reported $23.24 earnings per share for the quarter, topping analysts’ consensus estimates of $2.66 by $20.58. The business had revenue of $97.06 billion for the quarter, compared to analyst estimates of $100.17 billion. PDD had a return on equity of 48.14% and a net margin of 28.92%. The company’s revenue was up 85.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.27 earnings per share. As a group, research analysts anticipate that PDD Holdings Inc. will post 11.05 earnings per share for the current fiscal year.

Institutional Trading of PDD

Large investors have recently added to or reduced their stakes in the company. Los Angeles Capital Management LLC boosted its stake in shares of PDD by 149.0% in the first quarter. Los Angeles Capital Management LLC now owns 296,786 shares of the company’s stock worth $34,501,000 after buying an additional 177,600 shares during the last quarter. Vanguard Group Inc. raised its position in shares of PDD by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 24,163,927 shares of the company’s stock worth $3,535,424,000 after acquiring an additional 62,312 shares during the period. Jupiter Asset Management Ltd. grew its position in shares of PDD by 63.7% during the 2nd quarter. Jupiter Asset Management Ltd. now owns 230,917 shares of the company’s stock valued at $30,700,000 after acquiring an additional 89,853 shares during the period. Assenagon Asset Management S.A. increased its stake in shares of PDD by 16.2% in the 2nd quarter. Assenagon Asset Management S.A. now owns 5,913,780 shares of the company’s stock valued at $786,237,000 after purchasing an additional 826,525 shares in the last quarter. Finally, Sei Investments Co. boosted its position in PDD by 130.6% during the second quarter. Sei Investments Co. now owns 498,237 shares of the company’s stock worth $66,240,000 after purchasing an additional 282,199 shares in the last quarter. Hedge funds and other institutional investors own 29.07% of the company’s stock.

About PDD

PDD Holdings Inc, a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace.