PDD (NASDAQ:PDD) Stock Rating Lowered by Nomura

Key Points

• Nomura downgraded PDD from “strong-buy” to “hold,” adding to a wave of more cautious analyst commentary on the stock.
• Other firms also turned more conservative, including Barclays cutting its target to $89 and Sanford C. Bernstein lowering its price target to $110, though the broader consensus still sits at Moderate Buy.
• PDD is trading near its 12-month low after recent results showed weaker-than-expected earnings and revenue, with investors also concerned about heavier spending and competitive pressure.

PDD (NASDAQ:PDD - Get Free Report) was downgraded by equities research analysts at Nomura from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

A number of other research analysts also recently commented on the stock. Barclays reaffirmed an "equal weight" rating and issued a $89.00 target price (down from $165.00) on shares of PDD in a research report on Thursday. The Goldman Sachs Group reaffirmed a "buy" rating on shares of PDD in a report on Thursday. 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. Morgan Stanley set a $129.00 target price on shares of PDD in a report on Wednesday. Finally, Wall Street Zen cut shares of PDD from a "buy" rating to a "hold" rating in a report on Saturday, January 31st. Seven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $131.33.

PDD Price Performance

NASDAQ PDD opened at $83.03 on Thursday. The firm's fifty day moving average price is $98.70 and its 200 day moving average price is $106.55. The company has a market capitalization of $118.18 billion, a price-to-earnings ratio of 8.97, a price-to-earnings-growth ratio of 0.82 and a beta of 0.04. PDD has a 12 month low of $81.56 and a 12 month high of $139.41.

PDD (NASDAQ:PDD - Get Free Report) last posted 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 net margin of 21.86% and a return on equity of 25.04%. As a group, sell-side analysts forecast that PDD will post 10.98 earnings per share for the current year.

Institutional Trading of PDD

Hedge funds have recently made changes to their positions in the company. GAMMA Investing LLC lifted its stake in shares of PDD by 595.0% in the 4th quarter. GAMMA Investing LLC now owns 278 shares of the company's stock worth $32,000 after acquiring an additional 238 shares during the period. Binnacle Investments Inc lifted its stake in shares of PDD by 281.7% in the 3rd quarter. Binnacle Investments Inc now owns 271 shares of the company's stock worth $36,000 after acquiring an additional 200 shares during the period. Smartleaf Asset Management LLC lifted its stake in shares of PDD by 230.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 377 shares of the company's stock worth $43,000 after acquiring an additional 263 shares during the period. Wexford Capital LP acquired a new position in shares of PDD during the 3rd quarter worth $44,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in shares of PDD during the 4th quarter worth $44,000. Institutional investors and hedge funds own 39.83% of the company's stock.

Key PDD News

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 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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