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

Key Points

• Unusually large options activity: Traders bought 104,835 call options on PDD on Thursday, roughly a 61% increase versus the typical daily call volume of 65,204.
• Analyst outlook mixed with a Hold consensus: Five analysts rate PDD a Buy and ten rate it Hold, resulting in an average rating of "Hold" and an average price target of $140.27 (individual targets range roughly $136–$170).
• Stock and valuation snapshot: PDD traded up to $104.82 (up $2.85), with a market cap of about $145.9B, a P/E of 11.15, and a 1‑year range of $92.27–$139.41.

PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD - Get Free Report) was the target of unusually large options trading on Thursday. Stock traders acquired 104,835 call options on the company. This represents an increase of approximately 61% compared to the typical daily volume of 65,204 call options.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on PDD shares. Nomura upgraded PDD from a "neutral" rating to a "buy" rating and set a $136.00 price target on the stock in a report on Friday, March 27th. Morgan Stanley set a $148.00 price target on PDD in a report on Thursday, January 15th. Wall Street Zen cut PDD from a "buy" rating to a "hold" rating in a report on Saturday, January 31st. Citigroup reiterated a "neutral" rating on shares of PDD in a report on Wednesday, January 28th. Finally, Loop Capital set a $170.00 target price on PDD in a report on Tuesday, January 6th. Five research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat.com, PDD has an average rating of "Hold" and an average price target of $140.27.

PDD Price Performance

NASDAQ:PDD traded up $2.85 during trading hours on Thursday, reaching $104.82. 5,746,692 shares of the company traded hands, compared to its average volume of 8,017,722. The firm's 50-day moving average is $101.99 and its 200-day moving average is $113.88. The stock has a market cap of $145.93 billion, a P/E ratio of 11.15, a P/E/G ratio of 0.96 and a beta of 0.07. PDD has a 1-year low of $92.27 and a 1-year high of $139.41.

Institutional Investors Weigh In On PDD

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

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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