PDD (NASDAQ:PDD) Stock Price Breaks Below 50 Day Moving Average Following Analyst Downgrade

PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD)’s share price crossed below its 50-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 50-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 also recently commented on PDD. Arete Research downgraded PDD from a “buy” rating to a “neutral” rating and set a $93.00 target price on the stock. in a report on Monday, September 7th. Weiss Ratings raised shares of PDD from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, October 27th. JPMorgan Chase & Co. lowered their price objective on shares of PDD from $110.00 to $95.00 and set a “neutral” rating for the company in a research report on Thursday, September 10th. Bank of America reiterated a “neutral” rating on shares of PDD in a research note on Wednesday, August 26th. Finally, Deutsche Bank Aktiengesellschaft raised shares of PDD from a “hold” rating to a “buy” rating in a research report on Thursday, October 29th. Five investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $107.31.

Institutional Trading of PDD

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Nykredit A S acquired a new stake in shares of PDD during the 2nd quarter valued at approximately $10,042,000. Public Employees Retirement System of Ohio acquired a new position in PDD in the second quarter worth $9,491,000. Quantitative Investment Management LLC acquired a new position in PDD in the second quarter worth $2,599,000. Wasatch Advisors LP acquired a new position in PDD in the second quarter worth $3,658,000. Finally, NEOS Investment Management LLC increased its stake in PDD by 10.7% during the second quarter. NEOS Investment Management LLC now owns 404,232 shares of the company’s stock valued at $30,835,000 after purchasing an additional 38,930 shares during the last quarter. 39.83% of the stock is owned by hedge funds and other institutional investors.

PDD Stock Down 1.4%

The firm’s 50 day simple moving average is $79.63 and its two-hundred day simple moving average is $90.28. The stock has a market cap of $113.02 billion, a P/E ratio of 8.74, a price-to-earnings-growth ratio of 0.64 and a beta of -0.03.

PDD (NASDAQ:PDD) last posted its quarterly earnings results on Friday, August 14th. The company reported $2.84 earnings per share (EPS) for the quarter. PDD had a net margin of 20.73% and a return on equity of 22.29%. The company had revenue of $16.54 billion for the quarter. As a group, equities analysts predict that PDD Holdings Inc. Sponsored ADR will post 10.02 EPS for the current 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.