PDD (NASDAQ:PDD) Sees Unusually-High Trading Volume - Here's Why

Key Points

• PDD Holdings Inc. experienced a significant increase in trading volume, with 18.7 million shares traded on Monday, marking a 109% rise from the previous session.
• Several analysts have adjusted their price targets for PDD, with Benchmark setting a new target at $128.00 and JPMorgan lowering it to $105.00, while the consensus price target stands at $144.55.
• PDD reported disappointing earnings, with an EPS of $1.37 compared to expectations of $2.25, alongside a revenue of $13.19 billion for the quarter.

PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Get Free Report) shares saw unusually-strong trading volume on Monday . Approximately 18,726,033 shares traded hands during mid-day trading, an increase of 109% from the previous session's volume of 8,965,379 shares.The stock last traded at $127.57 and had previously closed at $127.11.

Analysts Set New Price Targets

Several analysts have weighed in on PDD shares. Bank of America lifted their price objective on shares of PDD from $120.00 to $141.00 and gave the stock a "neutral" rating in a research note on Tuesday. Macquarie set a $165.00 price objective on shares of PDD and gave the stock an "outperform" rating in a research note on Monday. China Renaissance reiterated a "hold" rating and issued a $107.00 price objective on shares of PDD in a research note on Wednesday, May 28th. JPMorgan Chase & Co. dropped their price objective on shares of PDD from $125.00 to $105.00 and set a "neutral" rating for the company in a research note on Wednesday, May 28th. Finally, Citigroup reissued a "buy" rating on shares of PDD in a report on Monday. Five investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $137.82.

PDD Stock Performance

The company has a market capitalization of $170.15 billion, a P/E ratio of 13.26, a price-to-earnings-growth ratio of 1.66 and a beta of 0.42. The firm's fifty day moving average is $112.09 and its 200-day moving average is $111.33.

PDD (NASDAQ:PDD - Get Free Report) last announced its quarterly 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 company had revenue of $13.19 billion for the quarter, compared to the consensus estimate of $103.37 billion. PDD had a net margin of 23.93% and a return on equity of 30.57%. The company's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period last year, the firm posted $20.72 earnings per share. As a group, analysts expect that PDD Holdings Inc. Sponsored ADR will post 10.24 EPS for the current fiscal year.

Institutional Investors Weigh In On PDD

Several hedge funds and other institutional investors have recently made changes to their positions in PDD. Hollencrest Capital Management bought a new stake in shares of PDD during the 1st quarter valued at approximately $26,000. Westside Investment Management Inc. grew its holdings in shares of PDD by 398.0% during the 2nd quarter. Westside Investment Management Inc. now owns 249 shares of the company's stock valued at $26,000 after purchasing an additional 199 shares during the last quarter. Ameritas Advisory Services LLC acquired a new stake in PDD during the 2nd quarter worth approximately $28,000. IFP Advisors Inc boosted its position in PDD by 245.8% during the 1st quarter. IFP Advisors Inc now owns 408 shares of the company's stock worth $48,000 after buying an additional 290 shares during the period. Finally, EMC Capital Management acquired a new stake in PDD during the 2nd quarter worth approximately $52,000. 39.83% of the stock is owned by institutional investors.

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.