Traders Buy High Volume of Call Options on PDD (NASDAQ:PDD)

Key Points

• PDD Holdings Inc. experienced a significant rise in options trading, with 115,434 call options purchased, reflecting a 29% increase over its average daily volume.
• Institutional investors made notable movements, including National Bank of Canada FI increasing its stake by 536.7%, acquiring over 1.8 million shares, which now constitutes nearly 40% of the company’s stock.
• Wall Street analysts have mixed views on PDD, with price targets ranging from $105 to $160, indicating varying levels of confidence in the company's growth potential.

PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Traders acquired 115,434 call options on the stock. This represents an increase of 29% compared to the average daily volume of 89,660 call options.

Hedge Funds Weigh In On PDD

A number of hedge funds have recently added to or reduced their stakes in the business. Krane Funds Advisors LLC raised its holdings in shares of PDD by 78.3% in the 1st quarter. Krane Funds Advisors LLC now owns 5,036,389 shares of the company's stock worth $596,057,000 after purchasing an additional 2,211,286 shares in the last quarter. Myriad Asset Management US LP purchased a new position in PDD during the first quarter valued at approximately $4,496,000. OVERSEA CHINESE BANKING Corp Ltd grew its position in PDD by 4,562.1% in the first quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 14,419,327 shares of the company's stock worth $1,706,527,000 after acquiring an additional 14,110,042 shares in the last quarter. Edmond DE Rothschild Holding S.A. grew its position in PDD by 54.1% in the first quarter. Edmond DE Rothschild Holding S.A. now owns 26,216 shares of the company's stock worth $3,103,000 after acquiring an additional 9,206 shares in the last quarter. Finally, Banco BTG Pactual S.A. acquired a new stake in shares of PDD in the first quarter worth $537,000. Institutional investors and hedge funds own 39.83% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. Benchmark reaffirmed a "buy" rating and set a $160.00 price target (up from $128.00) on shares of PDD in a research note on Tuesday, August 26th. Citigroup reissued a "buy" rating on shares of PDD in a research report on Monday, August 25th. New Street Research cut shares of PDD from a "buy" rating to a "neutral" rating and set a $120.00 price target on the stock. in a research report on Tuesday, August 26th. Jefferies Financial Group set a $146.00 price target on shares of PDD and gave the company a "buy" rating in a research report on Monday, August 25th. Finally, Bank of America lifted their price target on shares of PDD from $120.00 to $141.00 and gave the company a "neutral" rating in a research report on Tuesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $137.82.

PDD Trading Down 2.6%

PDD stock traded down $3.49 during mid-day trading on Friday, reaching $129.47. The company's stock had a trading volume of 17,397,871 shares, compared to its average volume of 11,173,270. The firm has a market cap of $180.24 billion, a price-to-earnings ratio of 14.04, a PEG ratio of 1.53 and a beta of 0.46. The business has a 50 day moving average price of $118.89 and a 200-day moving average price of $111.85. PDD has a twelve month low of $87.11 and a twelve month high of $155.67.

About PDD

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.