PDD (NASDAQ:PDD) Shares Gap Down – Should You Sell?

Shares of PDD Holdings Inc. (NASDAQ:PDD) gapped down before the market opened on Wednesday . The stock had previously closed at $144.86, but opened at $139.98. PDD shares last traded at $141.53, with a volume of 4,673,409 shares traded.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Sanford C. Bernstein dropped their price target on shares of PDD from $235.00 to $170.00 and set an “outperform” rating for the company in a research report on Tuesday, August 27th. Macquarie raised PDD from a “neutral” rating to an “outperform” rating and raised their target price for the stock from $126.00 to $224.00 in a research report on Monday. Citigroup lowered shares of PDD from a “buy” rating to a “neutral” rating and reduced their price objective for the company from $194.00 to $120.00 in a research note on Tuesday, August 27th. Daiwa America upgraded shares of PDD to a “strong-buy” rating in a research note on Tuesday, August 27th. Finally, Barclays dropped their price target on PDD from $224.00 to $158.00 and set an “overweight” rating on the stock in a research note on Tuesday, August 27th. One investment analyst has rated the stock with a hold rating, nine have issued a buy rating and two have given a strong buy rating to the company’s stock. According to data from MarketBeat.com, PDD presently has an average rating of “Buy” and a consensus target price of $182.40.

PDD Price Performance

The company has a market cap of $194.80 billion, a P/E ratio of 15.26, a PEG ratio of 0.35 and a beta of 0.71. The business’s fifty day moving average is $121.25 and its 200 day moving average is $129.82. The company has a current ratio of 2.11, a quick ratio of 2.11 and a debt-to-equity ratio of 0.02.

PDD (NASDAQ:PDD) last posted its quarterly earnings results on Monday, August 26th. The company reported $23.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.66 by $20.58. The company had revenue of $97.06 billion for the quarter, compared to analyst estimates of $100.17 billion. PDD had a net margin of 28.92% and a return on equity of 48.14%. The company’s quarterly revenue was up 85.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.27 earnings per share. As a group, sell-side analysts anticipate that PDD Holdings Inc. will post 11.05 EPS for the current year.

Hedge Funds Weigh In On PDD

Large investors have recently modified their holdings of the company. Los Angeles Capital Management LLC grew its holdings in shares of PDD by 149.0% during the first quarter. Los Angeles Capital Management LLC now owns 296,786 shares of the company’s stock worth $34,501,000 after purchasing an additional 177,600 shares in the last quarter. Vanguard Group Inc. increased its holdings in shares of PDD by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 24,163,927 shares of the company’s stock worth $3,535,424,000 after buying an additional 62,312 shares during the period. Jupiter Asset Management Ltd. boosted its holdings in PDD by 63.7% during the 2nd quarter. Jupiter Asset Management Ltd. now owns 230,917 shares of the company’s stock valued at $30,700,000 after acquiring an additional 89,853 shares during the period. Assenagon Asset Management S.A. boosted its stake in shares of PDD by 16.2% during the second quarter. Assenagon Asset Management S.A. now owns 5,913,780 shares of the company’s stock valued at $786,237,000 after purchasing an additional 826,525 shares during the period. Finally, Sei Investments Co. boosted its position in PDD by 130.6% during the 2nd quarter. Sei Investments Co. now owns 498,237 shares of the company’s stock valued at $66,240,000 after buying an additional 282,199 shares during the period. 29.07% of the stock is currently owned by institutional investors.

PDD Company Profile

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.