PDD (NASDAQ:PDD) Shares Gap Down After Analyst Downgrade

PDD Holdings Inc. (NASDAQ:PDD)’s stock price gapped down before the market opened on Thursday after Benchmark lowered their price target on the stock from $185.00 to $160.00. The stock had previously closed at $116.49, but opened at $104.43. Benchmark currently has a buy rating on the stock. PDD shares last traded at $106.29, with a volume of 6,255,358 shares trading hands.

PDD has been the subject of a number of other research reports. Bank of America reduced their price objective on shares of PDD from $206.00 to $170.00 and set a “buy” rating for the company in a research note on Tuesday, August 27th. Citigroup downgraded shares of PDD from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $194.00 to $120.00 in a research note on Tuesday, August 27th. JPMorgan Chase & Co. downgraded shares of PDD from an “overweight” rating to a “neutral” rating and reduced their price objective for the stock from $170.00 to $105.00 in a research note on Friday. Macquarie raised shares of PDD from a “neutral” rating to an “outperform” rating and boosted their price objective for the stock from $126.00 to $224.00 in a research note on Monday, October 7th. Finally, Sanford C. Bernstein reduced their price objective on shares of PDD from $235.00 to $170.00 and set an “outperform” rating for the company in a research note on Tuesday, August 27th. Two investment analysts have rated the stock with a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Buy” and a consensus price target of $173.40.

Hedge Funds Weigh In On PDD

Hedge funds have recently made changes to their positions in the company. TB Alternative Assets Ltd. increased its position in shares of PDD by 33.7% in the 3rd quarter. TB Alternative Assets Ltd. now owns 173,148 shares of the company’s stock valued at $23,342,000 after acquiring an additional 43,648 shares during the period. Vontobel Holding Ltd. increased its position in shares of PDD by 13.3% in the 3rd quarter. Vontobel Holding Ltd. now owns 234,325 shares of the company’s stock valued at $31,589,000 after acquiring an additional 27,567 shares during the period. Jupiter Asset Management Ltd. increased its position in shares of PDD by 63.7% in 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. BOCHK Asset Management Ltd increased its position in shares of PDD by 3,391.7% in the 3rd quarter. BOCHK Asset Management Ltd now owns 41,900 shares of the company’s stock valued at $5,649,000 after acquiring an additional 40,700 shares during the period. Finally, M&G PLC increased its position in shares of PDD by 14.2% in the 3rd quarter. M&G PLC now owns 247,417 shares of the company’s stock valued at $33,401,000 after acquiring an additional 30,817 shares during the period. 29.07% of the stock is owned by institutional investors and hedge funds.

PDD Stock Performance

The company has a current ratio of 2.11, a quick ratio of 2.11 and a debt-to-equity ratio of 0.02. The firm has a 50-day moving average of $123.24 and a 200-day moving average of $129.77. The stock has a market capitalization of $137.68 billion, a price-to-earnings ratio of 10.78, a P/E/G ratio of 0.28 and a beta of 0.71.

PDD (NASDAQ:PDD) last posted 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 28.92% and a return on equity of 48.14%. The company had revenue of $97.06 billion for the quarter, compared to analyst estimates of $100.17 billion. During the same period in the prior year, the company earned $1.27 earnings per share. The firm’s revenue was up 85.7% on a year-over-year basis. As a group, sell-side analysts predict that PDD Holdings Inc. will post 11.19 earnings per share for the current 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.