Headwater Capital Co Ltd Acquires 100,000 Shares of PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD)

Key Points

• Headwater Capital Co Ltd more than doubled its holdings in PDD Holdings Inc., increasing its stake by 100% to 200,000 shares, which now constitutes 10.6% of its portfolio.
• PDD recently posted earnings of $1.37 per share, missing expectations of $2.25, while quarterly revenue reached $13.19 billion, also below estimates.
• Analyst ratings for PDD vary significantly, with Citigroup upgrading it to a "buy" with a price target of $165.00, while others lowered targets, resulting in a consensus rating of "Moderate Buy" with a target price of $144.55.

Headwater Capital Co Ltd increased its position in shares of PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Free Report) by 100.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 200,000 shares of the company's stock after buying an additional 100,000 shares during the period. PDD comprises approximately 10.6% of Headwater Capital Co Ltd's holdings, making the stock its 4th largest holding. Headwater Capital Co Ltd's holdings in PDD were worth $23,670,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of PDD. Hollencrest Capital Management purchased a new position in PDD in the first quarter worth approximately $26,000. IFP Advisors Inc boosted its stake in shares of PDD by 245.8% in the first quarter. IFP Advisors Inc now owns 408 shares of the company's stock valued at $48,000 after buying an additional 290 shares in the last quarter. Siemens Fonds Invest GmbH acquired a new stake in shares of PDD in the 4th quarter worth approximately $192,000. OneDigital Investment Advisors LLC purchased a new stake in PDD during the 1st quarter worth about $204,000. Finally, Gunderson Capital Management Inc. purchased a new position in shares of PDD during the 1st quarter worth $218,000. Hedge funds and other institutional investors own 39.83% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Benchmark cut their price objective on PDD from $160.00 to $128.00 and set a "buy" rating on the stock in a research report on Wednesday, May 28th. Macquarie restated an "outperform" rating on shares of PDD in a research note on Tuesday, May 27th. Jefferies Financial Group set a $121.00 price objective on shares of PDD and gave the stock a "buy" rating in a report on Tuesday, May 27th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $112.00 price target on shares of PDD in a research report on Wednesday, May 28th. Finally, JPMorgan Chase & Co. decreased their target price on shares of PDD from $125.00 to $105.00 and set a "neutral" rating for the company in a research report on Wednesday, May 28th. Seven investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $144.55.

PDD Stock Performance

NASDAQ:PDD traded up $1.98 during trading hours on Monday, reaching $112.04. The company's stock had a trading volume of 3,833,438 shares, compared to its average volume of 6,733,549. The firm has a 50-day simple moving average of $105.72 and a 200-day simple moving average of $110.23. The firm has a market capitalization of $155.98 billion, a price-to-earnings ratio of 12.06, a PEG ratio of 1.54 and a beta of 0.42. PDD Holdings Inc. Sponsored ADR has a 1 year low of $87.11 and a 1 year high of $155.67.

PDD (NASDAQ:PDD - Get Free Report) last announced its earnings results on Tuesday, May 27th. The company reported $1.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.25 by ($0.88). The firm had revenue of $13.19 billion during the quarter, compared to analysts' expectations of $103.37 billion. PDD had a return on equity of 33.76% and a net margin of 24.63%. The company's revenue for the quarter was up 10.2% on a year-over-year basis. During the same period in the previous year, the business posted $20.72 earnings per share. Equities analysts anticipate that PDD Holdings Inc. Sponsored ADR will post 10.24 earnings per share for the current fiscal year.

PDD Company Profile

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.