Pinduoduo Inc (NASDAQ:PDD)’s share price shot up 16% during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $30.20 and last traded at $30.11, 42,210,695 shares changed hands during mid-day trading. An increase of 467% from the average session volume of 7,440,196 shares. The stock had previously closed at $25.96.
The company reported ($0.12) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.25) by $0.13. Pinduoduo had a negative net margin of 73.90% and a negative return on equity of 76.66%. The business had revenue of $7.29 billion during the quarter, compared to analyst estimates of $6.15 billion. Pinduoduo’s revenue for the quarter was up 169.1% on a year-over-year basis.
A number of brokerages have issued reports on PDD. New Street Research began coverage on shares of Pinduoduo in a report on Thursday, June 20th. They set a “buy” rating for the company. Zacks Investment Research downgraded Pinduoduo from a “buy” rating to a “hold” rating in a research report on Thursday, August 1st. Credit Suisse Group downgraded Pinduoduo from an “outperform” rating to a “neutral” rating in a research report on Tuesday, July 16th. KeyCorp increased their target price on Pinduoduo from $32.00 to $40.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Benchmark increased their target price on Pinduoduo from $28.00 to $39.00 and gave the company a “buy” rating in a research report on Thursday. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and ten have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus price target of $30.09.
The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.01. The business has a 50 day simple moving average of $22.03 and a two-hundred day simple moving average of $23.27. The firm has a market cap of $28.76 billion and a PE ratio of -15.11.
About Pinduoduo (NASDAQ:PDD)
Pinduoduo Inc operates an e-commerce platform in the People's Republic of China. It also operates Pinduoduo, a mobile platform that offers a range of priced merchandise. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc in July 2018. Pinduoduo Inc was founded in 2015 and is based in Shanghai, the People's Republic of China.
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