WCM Investment Management LLC Grows Stake in PDD Holdings Inc. Sponsored ADR $PDD

Key Points

• WCM Investment Management increased its PDD Holdings stake by 49.6% in the first quarter, adding 113,300 shares to reach 341,815 shares valued at about $33.6 million.
• Several other hedge funds also boosted or initiated positions in PDD, and institutional investors now hold about 39.83% of the stock.
• Analysts remain mixed on PDD after its latest earnings miss: the company posted $1.38 EPS versus the $2.40 estimate, while the consensus rating sits at Hold with a price target of $124.64.

WCM Investment Management LLC raised its stake in PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Free Report) by 49.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 341,815 shares of the company's stock after acquiring an additional 113,300 shares during the period. WCM Investment Management LLC's holdings in PDD were worth $33,641,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently made changes to their positions in the company. GAMMA Investing LLC raised its position in PDD by 595.0% in the 4th quarter. GAMMA Investing LLC now owns 278 shares of the company's stock valued at $32,000 after purchasing an additional 238 shares during the last quarter. Binnacle Investments Inc boosted its stake in shares of PDD by 281.7% during the third quarter. Binnacle Investments Inc now owns 271 shares of the company's stock worth $36,000 after buying an additional 200 shares during the period. Smartleaf Asset Management LLC boosted its stake in shares of PDD by 230.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 377 shares of the company's stock worth $43,000 after buying an additional 263 shares during the period. Wexford Capital LP purchased a new position in shares of PDD during the third quarter worth about $44,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of PDD during the fourth quarter worth about $44,000. Hedge funds and other institutional investors own 39.83% of the company's stock.

Wall Street Analyst Weigh In

PDD has been the subject of several analyst reports. Jefferies Financial Group restated a "buy" rating on shares of PDD in a research note on Wednesday, May 27th. Barclays cut shares of PDD from an "overweight" rating to an "equal weight" rating and dropped their price objective for the company from $165.00 to $89.00 in a research note on Thursday, May 28th. BNP Paribas Exane initiated coverage on shares of PDD in a research note on Monday, June 15th. They issued an "underperform" rating and a $89.00 target price for the company. Sanford C. Bernstein lowered their target price on shares of PDD from $132.00 to $110.00 and set a "market perform" rating on the stock in a report on Wednesday, May 27th. Finally, Benchmark cut their price target on shares of PDD from $160.00 to $127.00 and set a "buy" rating for the company in a report on Thursday, May 28th. Seven equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $124.64.

PDD Price Performance

NASDAQ:PDD opened at $84.14 on Monday. The firm has a market capitalization of $119.76 billion and a P/E ratio of 9.09. The business has a 50 day simple moving average of $85.72 and a 200 day simple moving average of $97.60. PDD Holdings Inc. Sponsored ADR has a 12-month low of $71.94 and a 12-month high of $139.41.

PDD (NASDAQ:PDD - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The company reported $1.38 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.40 by ($1.02). PDD had a net margin of 21.86% and a return on equity of 24.32%. The firm had revenue of $15.41 billion for the quarter, compared to the consensus estimate of $15.92 billion. During the same period in the previous year, the business posted $1.57 earnings per share. The business's revenue for the quarter was up 11.0% compared to the same quarter last year. Research analysts anticipate that PDD Holdings Inc. Sponsored ADR will post 9.7 EPS for the current fiscal year.

PDD 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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