PDD (NASDAQ:PDD) Downgraded by Arete Research to Hold

Key Points

• Arete Research downgraded PDD from “strong buy” to “hold” and set a $93 price target, implying 16.61% potential upside from the prior close.
• Analyst sentiment is mixed but leans toward caution: PDD has a consensus “hold” rating from five Buy, nine Hold and one Sell recommendations, with an average target of $114.83.
• PDD shares opened at $79.75, well below their 52-week high of $139.41. The company recently reported quarterly EPS of $2.84 on $16.54 billion in revenue, with a 20.73% net margin.

PDD (NASDAQ:PDD - Get Free Report) was downgraded by research analysts at Arete Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday, MarketBeat Ratings reports. They presently have a $93.00 target price on the stock. Arete Research's price target would indicate a potential upside of 16.61% from the stock's previous close.

PDD has been the topic of a number of other research reports. The Goldman Sachs Group reiterated a "buy" rating on shares of PDD in a research report on Thursday, May 28th. Sanford C. Bernstein reduced their price target on shares of PDD from $132.00 to $110.00 and set a "market perform" rating for the company in a report on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $105.00 price target on shares of PDD in a research note on Monday, August 24th. BNP Paribas Exane began coverage on shares of PDD in a report on Monday, June 15th. They set an "underperform" rating and a $89.00 price objective on the stock. Finally, Morgan Stanley set a $129.00 price objective on shares of PDD in a research report on Wednesday, May 27th. Five research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $114.83.

PDD Stock Performance

Shares of PDD stock opened at $79.75 on Monday. The company has a market cap of $113.52 billion, a P/E ratio of 8.78, a PEG ratio of 0.62 and a beta of -0.01. The stock has a 50 day simple moving average of $85.91 and a two-hundred day simple moving average of $91.96. PDD has a fifty-two week low of $71.94 and a fifty-two week high of $139.41.

PDD (NASDAQ:PDD - Get Free Report) last posted its quarterly earnings results on Friday, August 14th. The company reported $2.84 earnings per share (EPS) for the quarter. The firm had revenue of $16.54 billion for the quarter. PDD had a return on equity of 22.29% and a net margin of 20.73%. On average, research analysts predict that PDD will post 10.5 earnings per share for the current year.

Hedge Funds Weigh In On PDD

Institutional investors have recently modified their holdings of the company. Advisory Services Network LLC grew its position in PDD by 0.7% in the 3rd quarter. Advisory Services Network LLC now owns 15,458 shares of the company's stock valued at $2,043,000 after purchasing an additional 102 shares during the period. Wealthfront Advisers LLC raised its holdings in PDD by 3.6% during the first quarter. Wealthfront Advisers LLC now owns 3,609 shares of the company's stock worth $369,000 after buying an additional 127 shares during the last quarter. NewEdge Advisors LLC lifted its stake in shares of PDD by 2.9% in the first quarter. NewEdge Advisors LLC now owns 4,677 shares of the company's stock valued at $478,000 after buying an additional 134 shares in the last quarter. Focus Partners Wealth lifted its stake in shares of PDD by 1.0% in the fourth quarter. Focus Partners Wealth now owns 13,886 shares of the company's stock valued at $1,512,000 after buying an additional 142 shares in the last quarter. Finally, Mariner LLC lifted its stake in shares of PDD by 0.8% in the fourth quarter. Mariner LLC now owns 22,092 shares of the company's stock valued at $2,506,000 after buying an additional 165 shares in the last quarter. 39.83% of the stock is owned by institutional investors and hedge funds.

About PDD

PDD Holdings Inc is a multinational commerce group that operates technology platforms connecting consumers, merchants, producers and suppliers. The company's businesses focus on online retail, agricultural commerce and value-oriented shopping experiences, using interactive features, data and consumer demand to support transactions and product discovery.

Its flagship platform, Pinduoduo, serves consumers in China and offers a broad selection of products, including agricultural goods, groceries, household items, apparel, electronics and other consumer merchandise.

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