PDD (NASDAQ:PDD) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded PDD to “strong sell” from “hold,” while other analysts also lowered price targets or issued cautious ratings. Despite this, the broader analyst consensus remains “hold,” with an average target price of $124.64.
• PDD shares opened at $85.71, near the lower end of their 52-week range of $71.94 to $139.41. The stock trades at a price-to-earnings ratio of 9.26 and is below its 200-day moving average of $95.99.
• The company’s latest quarterly results missed expectations, reporting $1.38 in EPS versus the $2.40 consensus estimate and revenue of $15.41 billion versus $15.92 billion expected, although revenue increased 11% year over year.

PDD (NASDAQ:PDD - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Monday,Zacks.com reports.

A number of other equities analysts have also recently commented on PDD. Sanford C. Bernstein cut 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. BNP Paribas Exane began coverage on shares of PDD in a research note on Monday, June 15th. They set an "underperform" rating and a $89.00 price target for the company. Citigroup lowered their price objective on shares of PDD from $142.00 to $123.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. Morgan Stanley set a $129.00 price objective on shares of PDD in a research note on Wednesday, May 27th. Finally, Daiwa Securities Group reiterated a "hold" rating and set a $80.00 target price on shares of PDD in a research note on Tuesday, June 23rd. Seven equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $124.64.

PDD Stock Up 1.0%

Shares of NASDAQ PDD opened at $85.71 on Monday. The business has a 50-day moving average price of $83.99 and a 200 day moving average price of $95.99. The stock has a market cap of $122.00 billion and a PE ratio of 9.26. PDD has a 52-week low of $71.94 and a 52-week high of $139.41.

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

Institutional Investors Weigh In On PDD

A number of hedge funds have recently added to or reduced their stakes in PDD. Binnacle Investments Inc increased its position in PDD by 281.7% during the 3rd quarter. Binnacle Investments Inc now owns 271 shares of the company's stock worth $36,000 after purchasing an additional 200 shares during the period. GAMMA Investing LLC lifted its holdings in shares of 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 buying an additional 238 shares during the period. Wexford Capital LP purchased a new stake in shares of PDD in the third quarter valued at approximately $44,000. Smartleaf Asset Management LLC boosted its stake in shares of PDD by 230.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 377 shares of the company's stock valued at $43,000 after buying an additional 263 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in PDD during the fourth quarter worth $44,000. Institutional investors and hedge funds own 39.83% of the company's stock.

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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