PDD (NASDAQ:PDD) Shares Gap Down – Time to Sell?

PDD Holdings Inc. (NASDAQ:PDD)’s stock price 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.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on PDD. Citigroup lowered PDD from a “buy” rating to a “neutral” rating and dropped their target price for the company from $194.00 to $120.00 in a research report on Tuesday, August 27th. Bank of America decreased their price target on PDD from $206.00 to $170.00 and set a “buy” rating for the company in a research note on Tuesday, August 27th. Nomura Securities raised shares of PDD to a “strong-buy” rating in a research report on Tuesday, August 27th. Benchmark decreased their price objective on shares of PDD from $230.00 to $185.00 and set a “buy” rating for the company in a research report on Tuesday, August 27th. Finally, Macquarie upgraded PDD from a “neutral” rating to an “outperform” rating and upped their price objective for the company from $126.00 to $224.00 in a research note on Monday. One investment analyst has rated the stock with a hold rating, nine have issued a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $182.40.

PDD Price Performance

The business’s 50 day simple moving average is $121.00 and its 200-day simple moving average is $129.74. The stock has a market capitalization of $195.54 billion, a price-to-earnings ratio of 19.19, a P/E/G ratio of 0.37 and a beta of 0.71. The company has a quick ratio of 2.11, a current ratio of 2.11 and a debt-to-equity ratio of 0.02.

PDD (NASDAQ:PDD) last released its quarterly earnings data on Monday, August 26th. The company reported $23.24 earnings per share for the quarter, beating the consensus estimate of $2.66 by $20.58. PDD had a return on equity of 48.14% and a net margin of 28.92%. The business had revenue of $97.06 billion for the quarter, compared to analyst estimates of $100.17 billion. PDD’s revenue was up 85.7% compared to the same quarter last year. During the same period last year, the firm posted $1.27 earnings per share. On average, research analysts forecast that PDD Holdings Inc. will post 11.05 earnings per share for the current year.

Hedge Funds Weigh In On PDD

A number of hedge funds have recently modified their holdings of the business. Hhlr Advisors LTD. increased its position in shares of PDD by 37.5% during the fourth quarter. Hhlr Advisors LTD. now owns 10,110,947 shares of the company’s stock worth $1,479,333,000 after buying an additional 2,760,100 shares during the period. Acadian Asset Management LLC boosted its position in shares of PDD by 107.8% during the 2nd quarter. Acadian Asset Management LLC now owns 3,670,799 shares of the company’s stock valued at $487,984,000 after purchasing an additional 1,904,155 shares in the last quarter. Tairen Capital Ltd grew its stake in PDD by 49.8% during the second quarter. Tairen Capital Ltd now owns 5,378,376 shares of the company’s stock worth $715,055,000 after purchasing an additional 1,788,076 shares during the period. Dragoneer Investment Group LLC lifted its stake in PDD by 142.6% in the second quarter. Dragoneer Investment Group LLC now owns 2,620,838 shares of the company’s stock valued at $348,440,000 after buying an additional 1,540,346 shares during the period. Finally, Renaissance Technologies LLC bought a new position in shares of PDD during the 2nd quarter worth approximately $176,332,000. Institutional investors and hedge funds own 29.07% of the company’s stock.

About PDD

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.