PDD (NASDAQ:PDD) Shares Down 4.1% - Should You Sell?

Key Points

• PDD shares fell 4.1% to about $78.32, with trading volume roughly 79% below the average. The stock remains below its 50-day and 200-day moving averages of $81.60 and $87.12, respectively.
• Analyst sentiment is mixed but leans toward Hold: five analysts rate the stock Buy, nine Hold and two Sell. The average price target is $110.31, although recent targets include Deutsche Bank’s $105 and Daiwa’s $80.
• PDD reported quarterly earnings of $2.84 per share on $16.54 billion in revenue, with a 20.73% net margin and 22.29% return on equity. Institutional ownership stands at 39.83%, with several funds increasing or initiating positions during the third quarter.

PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Get Free Report)'s share price traded down 4.1% during trading on Wednesday. The company traded as low as $78.09 and last traded at $78.3160. 1,648,161 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 7,695,279 shares. The stock had previously closed at $81.63.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Zacks Research upgraded PDD from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 25th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $105.00 price target on shares of PDD in a research report on Monday, August 24th. Bank of America reiterated a "neutral" rating on shares of PDD in a report on Wednesday, August 26th. Daiwa Securities Group reiterated a "hold" rating and set a $80.00 price target on shares of PDD in a report on Tuesday, June 23rd. Finally, Weiss Ratings cut PDD from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, October 9th. Five equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $110.31.

PDD Price Performance

The firm has a 50 day moving average of $81.60 and a 200-day moving average of $87.12. The stock has a market capitalization of $112.01 billion, a P/E ratio of 8.67, a price-to-earnings-growth ratio of 0.64 and a beta of -0.05.

PDD (NASDAQ:PDD - Get Free Report) last announced its quarterly earnings data on Friday, August 14th. The company reported $2.84 EPS for the quarter. The company had revenue of $16.54 billion during the quarter. PDD had a return on equity of 22.29% and a net margin of 20.73%. As a group, equities analysts expect that PDD Holdings Inc. Sponsored ADR will post 10.02 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Robeco Institutional Asset Management B.V. boosted its stake in shares of PDD by 40.8% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 1,121,534 shares of the company's stock valued at $87,412,000 after purchasing an additional 325,066 shares in the last quarter. Frank Rimerman Advisors LLC lifted its holdings in PDD by 9.2% during the 3rd quarter. Frank Rimerman Advisors LLC now owns 4,951 shares of the company's stock valued at $386,000 after purchasing an additional 416 shares during the last quarter. Assenagon Asset Management S.A. bought a new position in PDD during the 3rd quarter valued at about $202,907,000. Ninety One UK Ltd acquired a new position in PDD in the third quarter valued at about $285,000. Finally, GK Wealth Management LLC acquired a new stake in shares of PDD during the third quarter worth approximately $55,000. 39.83% of the stock is owned by institutional investors.

PDD Company Profile

PDD Holdings Inc is a multinational commerce group that operates online marketplace platforms connecting consumers with merchants, manufacturers and agricultural producers. The company's platforms use interactive shopping features, including group purchasing and personalized product discovery, to offer a broad range of merchandise at competitive prices.

PDD Holdings' businesses include Pinduoduo, an e-commerce platform serving consumers in China, and Temu, an online marketplace launched in 2022 that serves consumers across multiple international markets, including North America, Europe and other regions.

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