JD.com (NASDAQ:JD) Stock Price Down 4.1% - Here's Why

Key Points

• JD.com shares fell 4.1% to about $25.65, with trading volume 59% below the stock’s average daily volume.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $35.33, despite recent target-price cuts from Bank of America, Susquehanna and Barclays.
• JD.com’s latest quarter exceeded earnings and revenue expectations, but revenue declined 2.9% year over year and net margin remained low at 1.13%; institutional investors own 15.98% of the company.

JD.com, Inc. (NASDAQ:JD - Get Free Report) shares fell 4.1% on Wednesday. The company traded as low as $25.75 and last traded at $25.6530. 3,719,700 shares traded hands during mid-day trading, a decline of 59% from the average daily volume of 8,990,881 shares. The stock had previously closed at $26.76.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on JD. Bank of America dropped their price objective on JD.com from $38.00 to $37.00 and set a "buy" rating for the company in a research note on Tuesday, October 13th. Susquehanna decreased their target price on JD.com from $35.00 to $30.00 and set a "neutral" rating on the stock in a research report on Monday, August 17th. Barclays decreased their target price on JD.com from $41.00 to $38.00 and set an "overweight" rating on the stock in a research report on Wednesday, October 14th. Weiss Ratings raised JD.com from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, October 6th. Finally, Sanford C. Bernstein restated an "outperform" rating on shares of JD.com in a research report on Friday, August 14th. Eight investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $35.33.

JD.com Stock Down 4.0%

The company has a market cap of $32.08 billion, a PE ratio of 17.84 and a beta of 0.33. The company has a quick ratio of 0.82, a current ratio of 1.14 and a debt-to-equity ratio of 0.19. The firm's fifty day simple moving average is $27.61 and its 200-day simple moving average is $28.94.

JD.com (NASDAQ:JD - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The information services provider reported $0.93 EPS for the quarter, beating the consensus estimate of $0.86 by $0.07. JD.com had a net margin of 1.13% and a return on equity of 6.78%. The business had revenue of $50.99 billion for the quarter, compared to analyst estimates of $50.38 billion. During the same period in the prior year, the business earned $4.97 earnings per share. The company's quarterly revenue was down 2.9% on a year-over-year basis. As a group, equities research analysts expect that JD.com, Inc. will post 2.90 earnings per share for the current fiscal year.

Hedge Funds Weigh In On JD.com

Several hedge funds have recently bought and sold shares of the stock. First Pacific Financial lifted its stake in shares of JD.com by 2.9% during the first quarter. First Pacific Financial now owns 14,210 shares of the information services provider's stock valued at $420,000 after buying an additional 395 shares during the period. Anchyra Partners LLC boosted its position in JD.com by 5.8% during the first quarter. Anchyra Partners LLC now owns 7,413 shares of the information services provider's stock worth $219,000 after acquiring an additional 404 shares during the last quarter. Quintet Private Bank Europe S.A. boosted its position in JD.com by 5.8% during the third quarter. Quintet Private Bank Europe S.A. now owns 8,263 shares of the information services provider's stock worth $220,000 after acquiring an additional 450 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in JD.com by 52.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,713 shares of the information services provider's stock worth $51,000 after acquiring an additional 589 shares during the period. Finally, Bank of New York Mellon Corp grew its stake in JD.com by 1.2% in the 1st quarter. Bank of New York Mellon Corp now owns 61,939 shares of the information services provider's stock worth $1,832,000 after acquiring an additional 743 shares during the period. Hedge funds and other institutional investors own 15.98% of the company's stock.

JD.com Company Profile

JD.com, Inc NASDAQ: JD is a technology and e-commerce company headquartered in Beijing, China. The company operates an online retail platform offering consumer electronics, appliances, computers, mobile devices, apparel, groceries, healthcare products and other consumer goods. Its business includes both direct sales of products and a marketplace that enables third-party merchants to reach customers.

Founded in 1998 by Richard Liu, JD.com has developed an integrated retail and logistics model designed to support product sourcing, warehousing, order fulfillment and delivery.

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