PDD (NASDAQ:PDD) Stock Price Breaks Below Fifty Day Moving Average Following Analyst Downgrade

Key Points

• Morgan Stanley downgraded PDD to Equal Weight from Overweight and cut its price target sharply to $90 from $129.
• PDD shares fell below their 50-day moving average of $79.63, trading as low as $79.01 and last at $79.40.
• Analyst views are mixed, but the consensus rating is Hold, with an average price target of $107.31.

PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Get Free Report)'s share price passed below its fifty day moving average during trading on Tuesday after Morgan Stanley downgraded the stock from an overweight rating to an equal weight rating. The stock has a fifty day moving average of $79.63 and traded as low as $79.01. Morgan Stanley now has a $90.00 price target on the stock, down from their previous price target of $129.00. PDD shares last traded at $79.40, with a volume of 5,183,680 shares.

Several other equities research analysts have also commented on the company. Deutsche Bank Aktiengesellschaft upgraded PDD from a "hold" rating to a "buy" rating in a research note on Thursday, October 29th. Weiss Ratings raised shares of PDD from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, October 27th. Benchmark reduced their target price on PDD from $127.00 to $114.00 and set a "buy" rating on the stock in a research report on Tuesday, August 25th. JPMorgan Chase & Co. decreased their price objective on shares of PDD from $110.00 to $95.00 and set a "neutral" rating on the stock in a report on Thursday, September 10th. Finally, Arete Research lowered PDD from a "buy" rating to a "neutral" rating and set a $93.00 target price on the stock. in a research note on Monday, September 7th. Five research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $107.31.

Institutional Investors Weigh In On PDD

A number of institutional investors and hedge funds have recently modified their holdings of the company. H&H International Investment LLC lifted its holdings in PDD by 71.2% in the 1st quarter. H&H International Investment LLC now owns 19,748,294 shares of the company's stock valued at $2,017,881,000 after purchasing an additional 8,211,600 shares in the last quarter. Temasek Holdings Private Ltd grew its stake in shares of PDD by 5.2% during the 1st quarter. Temasek Holdings Private Ltd now owns 4,926,061 shares of the company's stock valued at $503,345,000 after buying an additional 243,167 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of PDD by 7.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,737,229 shares of the company's stock valued at $381,496,000 after buying an additional 252,537 shares during the period. Perseverance Asset Management International increased its holdings in shares of PDD by 10.2% during the 1st quarter. Perseverance Asset Management International now owns 2,161,676 shares of the company's stock worth $220,880,000 after buying an additional 199,584 shares during the last quarter. Finally, Assenagon Asset Management S.A. purchased a new position in shares of PDD in the 3rd quarter worth $202,907,000. Institutional investors and hedge funds own 39.83% of the company's stock.

PDD Trading Down 1.4%

The firm has a market capitalization of $113.02 billion, a PE ratio of 8.74, a price-to-earnings-growth ratio of 0.64 and a beta of -0.03. The firm has a 50-day moving average of $79.63 and a two-hundred day moving average of $90.28.

PDD (NASDAQ:PDD - Get Free Report) last posted its quarterly earnings results on Friday, August 14th. The company reported $2.84 earnings per share (EPS) for the quarter. The firm 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%. Equities research analysts expect that PDD Holdings Inc. Sponsored ADR will post 10.02 earnings per share for the current fiscal year.

PDD Company Profile

PDD Holdings Inc. operates e-commerce platforms that connect consumers with merchants and other suppliers. Its businesses include Pinduoduo, a marketplace focused on China, and Temu, an international online marketplace. Pinduoduo uses interactive shopping features, including group buying, and offers products across categories such as groceries, apparel, home goods and electronics. The platform has also emphasized agricultural products, connecting farmers with consumers and other buyers. Temu serves customers in multiple markets outside China and offers a wide range of merchandise from suppliers and brands.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.