PDD (NASDAQ:PDD) Trading Down 5.6% on Analyst Downgrade

Shares of PDD Holdings Inc. (NASDAQ:PDD) were down 5.6% on Wednesday after Barclays lowered their price target on the stock from $224.00 to $158.00. Barclays currently has an overweight rating on the stock. PDD traded as low as $90.47 and last traded at $90.50. Approximately 15,344,788 shares changed hands during trading, an increase of 68% from the average daily volume of 9,137,335 shares. The stock had previously closed at $95.91.

A number of other research analysts have also weighed in on PDD. Jefferies Financial Group decreased their price objective on PDD from $193.00 to $151.00 and set a “buy” rating on the stock in a report on Monday. UBS Group boosted their price target on shares of PDD from $248.00 to $272.00 and gave the stock a “buy” rating in a research report on Wednesday, May 22nd. Benchmark decreased their target price on shares of PDD from $230.00 to $185.00 and set a “buy” rating on the stock in a research note on Tuesday. Bank of America reduced their price objective on PDD from $206.00 to $170.00 and set a “buy” rating on the stock in a research report on Tuesday. Finally, Citigroup downgraded PDD from a “buy” rating to a “neutral” rating and cut their target price for the stock from $194.00 to $120.00 in a research note on Tuesday. Two analysts have rated the stock with a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $163.33.

Institutional Investors Weigh In On PDD

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Ashton Thomas Private Wealth LLC acquired a new position in PDD in the second quarter valued at $32,000. Richardson Financial Services Inc. lifted its holdings in shares of PDD by 3,883.3% in the 2nd quarter. Richardson Financial Services Inc. now owns 239 shares of the company’s stock valued at $32,000 after purchasing an additional 233 shares during the last quarter. Future Financial Wealth Managment LLC acquired a new stake in shares of PDD in the 1st quarter valued at about $29,000. Mather Group LLC. grew its stake in PDD by 1,106.3% during the 2nd quarter. Mather Group LLC. now owns 386 shares of the company’s stock worth $51,000 after buying an additional 354 shares during the last quarter. Finally, Gordian Capital Singapore Pte Ltd acquired a new position in PDD during the fourth quarter worth approximately $59,000. 29.07% of the stock is currently owned by institutional investors and hedge funds.

PDD Stock Performance

The company has a market cap of $123.73 billion, a price-to-earnings ratio of 11.99, a price-to-earnings-growth ratio of 0.26 and a beta of 0.63. The firm has a 50-day simple moving average of $136.31 and a 200 day simple moving average of $132.92. The company has a quick ratio of 2.09, a current ratio of 2.09 and a debt-to-equity ratio of 0.02.

PDD (NASDAQ:PDD) last released its quarterly earnings results on Monday, August 26th. The company reported $23.24 EPS for the quarter, beating the consensus estimate of $2.66 by $20.58. PDD had a net margin of 26.93% and a return on equity of 45.04%. The firm had revenue of $97.06 billion during the quarter, compared to the consensus estimate of $100.17 billion. During the same quarter in the prior year, the firm earned $1.27 EPS. PDD’s revenue for the quarter was up 85.7% on a year-over-year basis. On average, sell-side analysts predict that PDD Holdings Inc. will post 11.41 earnings per share for the current fiscal year.

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.