PDD Holdings Inc. Sponsored ADR $PDD Stake Decreased by Charles Lim Capital Ltd

Key Points

• Charles Lim Capital Ltd cut its PDD stake by 16.7% in the fourth quarter, selling 100,000 shares and leaving it with 500,000 shares worth about $56.7 million. Even after the sale, PDD remained its third-largest holding.
• PDD’s latest earnings disappointed, with EPS of $1.38 missing the $2.40 estimate and revenue of $15.41 billion coming in slightly below expectations. Revenue still rose 11% year over year, but analysts now expect softer performance ahead.
• Sentiment on PDD has turned more cautious as several analysts cut price targets and law firms continue securities-fraud investigations. The stock is trading well below its 52-week high, and Wall Street’s average rating is now only a “Moderate Buy.”

Charles Lim Capital Ltd lowered its position in PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Free Report) by 16.7% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 500,000 shares of the company's stock after selling 100,000 shares during the quarter. PDD comprises about 15.4% of Charles Lim Capital Ltd's portfolio, making the stock its 3rd largest position. Charles Lim Capital Ltd's holdings in PDD were worth $56,695,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. GAMMA Investing LLC grew its holdings in shares of PDD by 595.0% in the fourth quarter. GAMMA Investing LLC now owns 278 shares of the company's stock worth $32,000 after purchasing an additional 238 shares during the last quarter. Binnacle Investments Inc grew its holdings in shares of PDD by 281.7% in the third quarter. Binnacle Investments Inc now owns 271 shares of the company's stock worth $36,000 after purchasing an additional 200 shares during the last quarter. Wexford Capital LP bought a new position in shares of PDD in the third quarter worth about $44,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new position in shares of PDD in the fourth quarter worth about $44,000. Finally, Assetmark Inc. grew its holdings in shares of PDD by 314.4% in the third quarter. Assetmark Inc. now owns 402 shares of the company's stock worth $53,000 after purchasing an additional 305 shares during the last quarter. Hedge funds and other institutional investors own 39.83% of the company's stock.

PDD Price Performance

Shares of PDD stock opened at $81.56 on Friday. PDD Holdings Inc. Sponsored ADR has a 1 year low of $78.87 and a 1 year high of $139.41. The firm's 50-day moving average is $95.33 and its two-hundred day moving average is $103.40. The stock has a market cap of $116.09 billion, a price-to-earnings ratio of 8.81, a PEG ratio of 0.85 and a beta of -0.02.

PDD (NASDAQ:PDD - Get Free Report) last issued its earnings results on Wednesday, May 27th. The company reported $1.38 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.40 by ($1.02). PDD had a return on equity of 24.32% and a net margin of 21.86%.The business had revenue of $15.41 billion for the quarter, compared to the consensus estimate of $15.92 billion. During the same quarter in the previous year, the company earned $1.57 earnings per share. The firm's revenue was up 11.0% on a year-over-year basis. On average, equities analysts expect that PDD Holdings Inc. Sponsored ADR will post 9.92 earnings per share for the current year.

Key PDD News

Here are the key news stories impacting PDD this week:

• Negative Sentiment: Analysts have turned more cautious on PDD, with one report saying the stock’s modeled fair value was cut from US$148.52 to US$119.85, reflecting worries about heavier investment, softer monetization, and slower order growth. PDD Holdings (PDD) Stock Fair Value Falls After Analysts Cut Targets On Q1 Concerns
• Negative Sentiment: Multiple law firms are continuing securities fraud investigations into PDD Holdings, keeping legal and headline risk elevated for shareholders. Securities Fraud Investigation Into PDD Holdings Inc. (PDD) Continues
• Negative Sentiment: Another legal notice from Frank R. Cruz’s law firm said it is still investigating PDD, adding to concerns about possible federal securities-law violations. Securities Fraud Investigation Into PDD Holdings Inc. (PDD) Continues
• Neutral Sentiment: PDD is drawing unusual investor attention, with Zacks noting heavy web searches and option-market activity, which can signal rising speculation but does not by itself confirm a fundamental change. Investors Heavily Search PDD Holdings Inc. Sponsored ADR (PDD): Here is What You Need to Know
• Neutral Sentiment: Options-trading activity has also picked up around PDD, suggesting traders are positioning for a larger move, but the direction remains unclear. Do Options Traders Know Something About PDD Holdings Stock We Don't?

Wall Street Analysts Forecast Growth

PDD has been the topic of a number of research analyst reports. Benchmark cut their price target on shares of PDD from $160.00 to $127.00 and set a "buy" rating on the stock in a report on Thursday, May 28th. Arete Research upgraded shares of PDD from a "neutral" rating to a "buy" rating and set a $121.00 price target on the stock in a report on Friday, April 17th. Nomura cut shares of PDD from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 28th. The Goldman Sachs Group restated a "buy" rating on shares of PDD in a report on Thursday, May 28th. Finally, Barclays cut shares of PDD from an "overweight" rating to an "equal weight" rating and cut their price target for the stock from $165.00 to $89.00 in a report on Thursday, May 28th. Seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $131.33.

About PDD

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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