Capital Today Evergreen Fund L.P. Reduces Position in PDD Holdings Inc. Sponsored ADR $PDD

Key Points

• Capital Today Evergreen Fund L.P. cut its PDD Holdings stake by 34.5% in the fourth quarter, selling 859,509 shares and leaving it with 1,634,077 shares worth about $185.3 million. PDD still represents 85.7% of the fund’s portfolio, making it its largest holding.
• Other institutions also moved in PDD: some, like Nomura Asset Management, added shares, while Norges Bank established a very large new position. Overall, institutional investors own about 39.83% of the stock.
• PDD’s stock has weakened recently, opening at $84.44 versus a 52-week high of $139.41, while analyst opinions remain mixed. Wall Street currently has a Moderate Buy consensus, but Barclays downgraded the stock and lowered its price target sharply amid concerns including weaker earnings, an EU fine on Temu, and securities-fraud investigations.

Capital Today Evergreen Fund L.P. trimmed its stake in PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Free Report) by 34.5% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,634,077 shares of the company's stock after selling 859,509 shares during the quarter. PDD accounts for 85.7% of Capital Today Evergreen Fund L.P.'s portfolio, making the stock its biggest holding. Capital Today Evergreen Fund L.P. owned about 0.12% of PDD worth $185,288,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also added to or reduced their stakes in PDD. Nomura Asset Management Co. Ltd. lifted its holdings in shares of PDD by 4.9% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 128,886 shares of the company's stock valued at $14,614,000 after purchasing an additional 6,033 shares in the last quarter. Crake Asset Management LLP bought a new position in shares of PDD during the fourth quarter valued at $5,216,000. Norges Bank bought a new position in shares of PDD during the fourth quarter valued at $1,065,446,000. Eurizon SLJ Capital Ltd bought a new position in shares of PDD during the fourth quarter valued at $583,000. Finally, Belvedere Trading LLC bought a new position in shares of PDD during the fourth quarter valued at $269,000. 39.83% of the stock is owned by institutional investors.

PDD Stock Performance

PDD stock opened at $84.44 on Monday. The stock has a market cap of $120.19 billion, a PE ratio of 9.12, a price-to-earnings-growth ratio of 0.80 and a beta of -0.01. PDD Holdings Inc. Sponsored ADR has a one year low of $81.56 and a one year high of $139.41. The stock has a fifty day moving average of $98.37 and a 200 day moving average of $106.17.

PDD (NASDAQ:PDD - Get Free Report) last posted its quarterly earnings data on Friday, May 15th. The company reported $0.34 EPS for the quarter. The company had revenue of $15.41 million during the quarter. PDD had a return on equity of 24.32% and a net margin of 21.86%. As a group, sell-side analysts predict that PDD Holdings Inc. Sponsored ADR will post 10.98 EPS for the current fiscal year.

Key Headlines Impacting PDD

Here are the key news stories impacting PDD this week:

• Positive Sentiment: One commentary piece argued the recent sell-off may be overdone and maintained a bullish view on PDD Holdings, suggesting some investors still see upside after the pullback. PDD Holdings: Unjustified Sell-Off, Strong Buy
• Neutral Sentiment: Benchmark lowered its price target on PDD but kept a buy rating, indicating Wall Street still sees meaningful upside even after trimming expectations. Benchmark price target cut
• Neutral Sentiment: Barclays cut its rating to equal weight and sharply reduced its price target, reflecting a more cautious stance on the stock’s near-term setup. Barclays downgrade
• Negative Sentiment: PDD’s latest quarterly results missed EPS and revenue estimates, even though revenue still rose year over year; investors focused on the miss as a sign growth is becoming harder to sustain. PDD Holdings Q1 Earnings Lag Estimates
• Negative Sentiment: Temu was hit with a €200 million EU fine over compliance issues, adding a fresh regulatory overhang for PDD’s fast-growing international business. Temu Hit With €200 Million EU Fine
• Negative Sentiment: Multiple law firms announced or continued securities-fraud investigations tied to PDD, which can weigh on sentiment and increase headline risk for shareholders. Securities Fraud Investigation Continues

Wall Street Analyst Weigh In

PDD has been the topic of a number of research analyst reports. The Goldman Sachs Group reaffirmed a "buy" rating on shares of PDD in a report on Thursday. Citigroup reduced their price objective on PDD from $142.00 to $123.00 and set a "buy" rating for the company in a research report on Wednesday. Morgan Stanley set a $129.00 price objective on PDD in a research report on Wednesday. Jefferies Financial Group reiterated a "buy" rating on shares of PDD in a research report on Wednesday. Finally, Barclays cut PDD from an "overweight" rating to an "equal weight" rating and reduced their price objective for the company from $165.00 to $89.00 in a research report on Thursday. Seven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, PDD has a consensus rating of "Moderate Buy" and an average target price of $131.33.

PDD Company Profile

PDD NASDAQ: PDD is the holding company best known for operating Pinduoduo, a China-based, mobile-first e-commerce platform that emphasizes interactive, social shopping and group-buying mechanics to drive user engagement and low prices. Founded in 2015 by entrepreneur Colin Huang, the business has grown by connecting consumers directly with merchants and manufacturers, with particular emphasis on value-oriented goods and fresh agricultural produce. The company is based in Shanghai and completed a U.S.

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