PDD (NASDAQ:PDD) Shares Gap Down – Here’s Why

PDD Holdings Inc. (NASDAQ:PDD)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $136.03, but opened at $131.06. PDD shares last traded at $130.93, with a volume of 4,608,733 shares changing hands.

Analysts Set New Price Targets

A number of research analysts recently commented on PDD shares. Citigroup downgraded shares of PDD from a “buy” rating to a “neutral” rating and lowered their price target for the company from $194.00 to $120.00 in a report on Tuesday, August 27th. Sanford C. Bernstein lowered their price target on shares of PDD from $235.00 to $170.00 and set an “outperform” rating for the company in a report on Tuesday, August 27th. Benchmark lowered their price target 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. Bank of America lowered their price target on shares of PDD from $206.00 to $170.00 and set a “buy” rating for the company in a report on Tuesday, August 27th. Finally, Macquarie raised shares of PDD from a “neutral” rating to an “outperform” rating and increased their price target for the company from $126.00 to $224.00 in a report on Monday, October 7th. One investment analyst has rated the stock with a hold rating, nine have given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, PDD presently has a consensus rating of “Buy” and an average target price of $182.40.

PDD Trading Down 0.6 %

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 firm has a market cap of $175.29 billion, a P/E ratio of 16.87, a P/E/G ratio of 0.35 and a beta of 0.71. The company’s 50 day simple moving average is $121.87 and its 200-day simple moving average is $130.44.

PDD (NASDAQ:PDD) last issued its earnings results on Monday, August 26th. The company reported $23.24 EPS 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 net margin of 28.92% and a return on equity of 48.14%. The company’s quarterly revenue was up 85.7% compared to the same quarter last year. During the same period last year, the company posted $1.27 earnings per share. As a group, research analysts predict that PDD Holdings Inc. will post 11.05 earnings per share for the current fiscal year.

Hedge Funds Weigh In On PDD

Several institutional investors have recently bought and sold shares of the business. Baillie Gifford & Co. increased its holdings in PDD by 1.0% during the second quarter. Baillie Gifford & Co. now owns 35,128,410 shares of the company’s stock valued at $4,670,322,000 after buying an additional 348,130 shares during the period. Vanguard Group Inc. grew its holdings in PDD by 0.4% in the first quarter. Vanguard Group Inc. now owns 24,261,575 shares of the company’s stock worth $2,820,408,000 after purchasing an additional 97,648 shares during the last quarter. Hhlr Advisors LTD. grew its holdings in PDD by 16.6% in the first quarter. Hhlr Advisors LTD. now owns 11,791,547 shares of the company’s stock worth $1,370,767,000 after purchasing an additional 1,680,600 shares during the last quarter. Assenagon Asset Management S.A. grew its holdings in PDD by 16.2% in the second quarter. Assenagon Asset Management S.A. now owns 5,913,780 shares of the company’s stock worth $786,237,000 after purchasing an additional 826,525 shares during the last quarter. Finally, Tairen Capital Ltd grew its holdings in PDD by 49.8% in the second quarter. Tairen Capital Ltd now owns 5,378,376 shares of the company’s stock worth $715,055,000 after purchasing an additional 1,788,076 shares during the last quarter. 29.07% of the stock is owned by hedge funds and other institutional investors.

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.