PDD (NASDAQ:PDD) Downgraded to “Hold” Rating by Nomura

Nomura lowered shares of PDD (NASDAQ:PDD) from a strong-buy rating to a hold rating in a report issued on Thursday,Zacks.com reports.

Several other research firms have also weighed in on PDD. Sanford C. Bernstein cut their target price on shares of PDD from $132.00 to $110.00 and set a “market perform” rating for the company in a report on Wednesday. The Goldman Sachs Group reaffirmed a “buy” rating on shares of PDD in a report on Thursday. Barclays reaffirmed an “equal weight” rating and set a $89.00 target price (down from $165.00) on shares of PDD in a report on Thursday. Wall Street Zen lowered shares of PDD from a “buy” rating to a “hold” rating in a report on Saturday, January 31st. Finally, Citigroup dropped their price target on shares of PDD from $142.00 to $123.00 and set a “buy” rating on the stock in a research note on Wednesday. Seven research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, PDD has an average rating of “Moderate Buy” and a consensus target price of $131.33.

PDD Trading Down 4.1%

Shares of NASDAQ:PDD opened at $83.03 on Thursday. The company has a market capitalization of $118.18 billion, a PE ratio of 8.97, a PEG ratio of 0.82 and a beta of 0.04. The business has a 50 day moving average of $98.70 and a two-hundred day moving average of $106.55. PDD has a 12-month low of $81.56 and a 12-month high of $139.41.

PDD (NASDAQ:PDD) last posted its earnings results on Friday, May 15th. The company reported $0.34 earnings per share for the quarter. The firm had revenue of $15.41 million during the quarter. PDD had a net margin of 21.86% and a return on equity of 25.04%. Equities research analysts predict that PDD will post 10.98 earnings per share for the current fiscal year.

Hedge Funds Weigh In On PDD

A number of hedge funds have recently made changes to their positions in the business. Oaktree Capital Management LP bought a new position in shares of PDD in the first quarter worth about $493,000. RBF Capital LLC bought a new position in shares of PDD in the first quarter worth about $2,044,000. H&H International Investment LLC boosted its stake in shares of PDD by 71.2% in the first quarter. H&H International Investment LLC now owns 19,748,294 shares of the company’s stock worth $2,017,881,000 after acquiring an additional 8,211,600 shares during the period. Oddo BHF Asset Management Sas boosted its stake in shares of PDD by 97.8% in the first quarter. Oddo BHF Asset Management Sas now owns 9,100 shares of the company’s stock worth $930,000 after acquiring an additional 4,500 shares during the period. Finally, California State Teachers Retirement System boosted its stake in shares of PDD by 17.2% in the first quarter. California State Teachers Retirement System now owns 362,290 shares of the company’s stock worth $37,019,000 after acquiring an additional 53,081 shares during the period. Institutional investors own 39.83% of the company’s stock.

PDD News Roundup

Here are the key news stories impacting PDD this week:

• Positive Sentiment: Some analysts still see meaningful upside, with Benchmark maintaining a buy rating even after lowering its price target, and another note describing the recent sell-off as potentially overdone. Benchmark price target update Seeking Alpha article
• Neutral Sentiment: PDD reported Q1 revenue growth of about 11% to 17% and transaction-services strength, but earnings and revenue still missed Wall Street estimates, showing the business is growing but not fast enough to meet expectations. Businesswire investigation Zacks earnings report
• Neutral Sentiment: The company is also facing multiple securities-fraud investigation notices from law firms, which can add headline risk but do not necessarily change fundamentals on their own. TMCnet investigation notice Howard G. Smith investigation
• Negative Sentiment: Investors are reacting to weaker-than-expected profit and revenue, plus management’s heavier spending on supply-chain expansion and Temu growth, which may pressure margins in the near term. MSN revenue miss article Proactive Investors article WSJ article
• Negative Sentiment: Wall Street has reset expectations lower, with Barclays sharply reducing its target and other coverage pointing to rising spending and tougher competition, reinforcing a more cautious outlook for PDD. Barclays target cut Supply chain push article

About PDD

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.