JD.com (NASDAQ:JD) Lowered to Hold Rating by Zacks Research

Zacks Research lowered shares of JD.com (NASDAQ:JD) from a strong-buy rating to a hold rating in a research report released on Tuesday morning,Zacks.com reports.

Other equities research analysts have also recently issued reports about the stock. Daiwa Securities Group reaffirmed a “hold” rating and set a $27.00 price objective on shares of JD.com in a research report on Tuesday, June 23rd. Wall Street Zen raised JD.com from a “sell” rating to a “hold” rating in a report on Saturday, April 18th. Citigroup raised their price target on JD.com from $35.00 to $36.00 and gave the company a “buy” rating in a research note on Tuesday, April 14th. Susquehanna lifted their price target on JD.com from $30.00 to $35.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Finally, Weiss Ratings upgraded JD.com from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, July 13th. Nine analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $36.42.

JD.com Stock Down 1.0%

Shares of NASDAQ:JD opened at $31.61 on Tuesday. JD.com has a fifty-two week low of $24.51 and a fifty-two week high of $36.86. The firm’s 50 day moving average price is $29.12 and its 200 day moving average price is $29.06. The company has a quick ratio of 0.87, a current ratio of 1.18 and a debt-to-equity ratio of 0.22. The stock has a market cap of $39.46 billion, a price-to-earnings ratio of 24.70 and a beta of 0.38.

JD.com (NASDAQ:JD) last posted its quarterly earnings results on Thursday, August 13th. The information services provider reported $0.92 EPS for the quarter, topping the consensus estimate of $0.86 by $0.06. JD.com had a net margin of 1.04% and a return on equity of 5.90%. The company had revenue of $50.99 billion during the quarter, compared to analysts’ expectations of $50.38 billion. As a group, equities research analysts predict that JD.com will post 2.78 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Binnacle Investments Inc raised its stake in JD.com by 365.8% during the 3rd quarter. Binnacle Investments Inc now owns 750 shares of the information services provider’s stock worth $26,000 after acquiring an additional 589 shares in the last quarter. Root Financial Partners LLC lifted its holdings in shares of JD.com by 1,020.0% in the 4th quarter. Root Financial Partners LLC now owns 1,120 shares of the information services provider’s stock valued at $32,000 after purchasing an additional 1,020 shares during the last quarter. Wexford Capital LP purchased a new stake in shares of JD.com in the 3rd quarter valued at about $43,000. Caitong International Asset Management Co. Ltd boosted its position in shares of JD.com by 191.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,241 shares of the information services provider’s stock valued at $36,000 after purchasing an additional 815 shares during the period. Finally, EFG International AG purchased a new position in JD.com during the 4th quarter worth approximately $36,000. 15.98% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting JD.com

Here are the key news stories impacting JD.com this week:

• Positive Sentiment: Adjusted earnings were $0.92 per share, exceeding the $0.86 analyst consensus, while revenue reached $50.99 billion versus expectations of $50.38 billion. The longer 618 shopping-festival sales period helped support revenue growth. JD.com Second Quarter Results Press Release
• Positive Sentiment: Losses at JD.com’s food-delivery operation narrowed, signaling progress in reducing the drag from newer growth initiatives. Services, JD Logistics and international operations remain important potential growth drivers. JD.com Profit, Revenue Beat Expectations as Food-Delivery Losses Narrow
• Neutral Sentiment: The company is increasing investment in artificial intelligence, international operations and other services. These initiatives could expand JD.com’s longer-term addressable market, but their financial benefits have not yet fully offset the associated spending.
• Neutral Sentiment: JD.com is also expanding direct sourcing of Korean consumer goods and establishing a sourcing unit in South Korea, supporting product selection and cross-border commerce while adding to its international-growth commitments. JD.com Expands Direct Buying of Korean Consumer Goods
• Negative Sentiment: Investors appeared to view the earnings beat as insufficient because promotional activity, food delivery, AI and overseas expansion can pressure margins. JD.com’s reported net margin was only 1.04%, highlighting the limited cushion for higher costs. JD.com Posts Earnings Beat but Stock Drops
• Negative Sentiment: The market reaction suggests that much of the expected benefit from the 618 promotion and recovery initiatives may already have been reflected in the shares, leaving investors focused on sustainable margin improvement and execution risks.

JD.com Company Profile

JD.com is a major Chinese e-commerce company that operates a comprehensive online retail platform selling a wide range of consumer goods, including electronics, appliances, apparel, groceries and everyday household items. The company combines direct retailing—purchasing inventory and selling products itself—with a marketplace for third-party merchants, offering consumers both self-operated and third-party choices. In addition to its core retail business, JD.com has expanded into adjacent services such as digital marketplaces for cross-border commerce, online pharmacy and healthcare services, and enterprise-facing cloud and technology solutions.

A distinctive feature of JD.com’s business model is its integrated logistics and fulfillment network.