PDD Holdings Inc. Sponsored ADR $PDD is Green Court Capital Management Ltd's 2nd Largest Position

Key Points

• Green Court Capital Management cut its PDD stake by 19.2% in the fourth quarter, but PDD still remains its second-largest holding and makes up 38.2% of the portfolio.
• Analyst sentiment is mixed but generally constructive: several firms trimmed price targets, while others maintained or upgraded to buy, leaving PDD with a consensus Moderate Buy rating and a $131.33 target.
• PDD faces near-term pressure from profit and revenue misses, heavier spending on supply-chain expansion and Temu growth, and multiple securities-fraud investigation notices that add headline risk.

Green Court Capital Management Ltd lessened its position in shares of PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Free Report) by 19.2% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 856,958 shares of the company's stock after selling 203,842 shares during the quarter. PDD comprises 38.2% of Green Court Capital Management Ltd's portfolio, making the stock its 2nd biggest holding. Green Court Capital Management Ltd owned approximately 0.06% of PDD worth $99,476,000 at the end of the most recent reporting period.

Several other large investors also recently added to or reduced their stakes in PDD. GAMMA Investing LLC increased its stake in PDD by 595.0% during the fourth quarter. GAMMA Investing LLC now owns 278 shares of the company's stock worth $32,000 after acquiring an additional 238 shares during the last quarter. Binnacle Investments Inc increased its stake in PDD by 281.7% during the third quarter. Binnacle Investments Inc now owns 271 shares of the company's stock worth $36,000 after acquiring an additional 200 shares during the last quarter. Wexford Capital LP bought a new stake in PDD during the third quarter worth approximately $44,000. Assetmark Inc. increased its stake in PDD by 314.4% during the third quarter. Assetmark Inc. now owns 402 shares of the company's stock worth $53,000 after acquiring an additional 305 shares during the last quarter. Finally, Larson Financial Group LLC increased its stake in PDD by 720.4% during the third quarter. Larson Financial Group LLC now owns 402 shares of the company's stock worth $53,000 after acquiring an additional 353 shares during the last quarter. 39.83% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on PDD. Barclays reissued an "equal weight" rating and set a $89.00 price objective (down from $165.00) on shares of PDD in a research note on Thursday. Sanford C. Bernstein reduced their price objective on PDD from $132.00 to $110.00 and set a "market perform" rating on the stock in a research note on Wednesday. Arete Research raised PDD from a "neutral" rating to a "buy" rating and set a $121.00 price objective on the stock in a research note on Friday, April 17th. Citigroup reduced their price objective on PDD from $142.00 to $123.00 and set a "buy" rating on the stock in a research note on Wednesday. Finally, Nomura raised PDD from a "neutral" rating to a "buy" rating and set a $136.00 price objective on the stock in a research note on Friday, March 27th. Eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, PDD has a consensus rating of "Moderate Buy" and a consensus price target of $131.33.

Key Headlines Impacting PDD

Here are the key news stories impacting PDD this week:

• Positive Sentiment: Some analysts still see meaningful upside, with Benchmark maintaining a buy rating even after lowering its price target, and another note describing the recent sell-off as potentially overdone. Benchmark price target update Seeking Alpha article
• Neutral Sentiment: PDD reported Q1 revenue growth of about 11% to 17% and transaction-services strength, but earnings and revenue still missed Wall Street estimates, showing the business is growing but not fast enough to meet expectations. Businesswire investigation Zacks earnings report
• Neutral Sentiment: The company is also facing multiple securities-fraud investigation notices from law firms, which can add headline risk but do not necessarily change fundamentals on their own. TMCnet investigation notice Howard G. Smith investigation
• Negative Sentiment: Investors are reacting to weaker-than-expected profit and revenue, plus management’s heavier spending on supply-chain expansion and Temu growth, which may pressure margins in the near term. MSN revenue miss article Proactive Investors article WSJ article
• Negative Sentiment: Wall Street has reset expectations lower, with Barclays sharply reducing its target and other coverage pointing to rising spending and tougher competition, reinforcing a more cautious outlook for PDD. Barclays target cut Supply chain push article

PDD Stock Performance

PDD opened at $83.03 on Friday. The stock has a market cap of $118.18 billion, a price-to-earnings ratio of 8.97, a P/E/G ratio of 0.82 and a beta of 0.04. The stock's 50 day moving average price is $98.70 and its 200-day moving average price is $106.55. PDD Holdings Inc. Sponsored ADR has a one year low of $81.56 and a one year high of $139.41.

PDD (NASDAQ:PDD - Get Free Report) last released its earnings results on Friday, May 15th. The company reported $0.34 EPS for the quarter. The firm had revenue of $15.41 million for the quarter. PDD had a return on equity of 25.04% and a net margin of 21.86%. As a group, analysts predict that PDD Holdings Inc. Sponsored ADR will post 10.98 earnings per share for the current fiscal year.

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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