Morgan Stanley Has Lowered Expectations for JD.com (NASDAQ:JD) Stock Price

JD.com (NASDAQ:JD) had its price objective cut by investment analysts at Morgan Stanley from $28.00 to $24.00 in a research note issued to investors on Wednesday,MarketScreener reports. The brokerage currently has an “underweight” rating on the information services provider’s stock. Morgan Stanley’s price target would suggest a potential downside of 18.40% from the company’s previous close.

Several other equities research analysts also recently weighed in on JD. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $38.00 price objective on shares of JD.com in a report on Friday, November 14th. Arete Research set a $32.00 price target on shares of JD.com in a research note on Tuesday, December 9th. Wall Street Zen lowered shares of JD.com from a “hold” rating to a “sell” rating in a research note on Saturday, November 22nd. Benchmark dropped their target price on JD.com from $42.00 to $38.00 and set a “buy” rating on the stock in a report on Friday, November 14th. Finally, Mizuho set a $41.00 target price on JD.com in a research report on Wednesday, October 22nd. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $38.40.

JD.com Stock Performance

Shares of NASDAQ JD traded down $0.42 during midday trading on Wednesday, hitting $29.41. 9,564,136 shares of the company’s stock were exchanged, compared to its average volume of 10,473,514. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.20 and a quick ratio of 0.88. The stock’s 50 day moving average price is $29.61 and its 200-day moving average price is $31.72. The firm has a market cap of $42.13 billion, a P/E ratio of 10.00, a PEG ratio of 5.43 and a beta of 0.40. JD.com has a twelve month low of $28.21 and a twelve month high of $46.44.

JD.com (NASDAQ:JD) last announced its earnings results on Thursday, November 13th. The information services provider reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.08. JD.com had a return on equity of 10.99% and a net margin of 2.46%.The firm had revenue of $41.98 billion for the quarter, compared to the consensus estimate of $40.87 billion. During the same quarter in the previous year, the business earned $8.68 EPS. The firm’s revenue for the quarter was up 14.9% on a year-over-year basis. Equities research analysts anticipate that JD.com will post 3.91 EPS for the current year.

Hedge Funds Weigh In On JD.com

Hedge funds have recently modified their holdings of the stock. Marshall Wace LLP boosted its position in shares of JD.com by 48.9% in the 2nd quarter. Marshall Wace LLP now owns 5,335,961 shares of the information services provider’s stock valued at $174,166,000 after purchasing an additional 1,753,236 shares during the period. Evergreen Capital Management LLC acquired a new stake in JD.com during the 3rd quarter worth about $51,741,000. Crake Asset Management LLP purchased a new stake in JD.com during the second quarter valued at about $41,975,000. Syquant Capital Sas acquired a new position in shares of JD.com in the fourth quarter worth about $35,323,000. Finally, Assenagon Asset Management S.A. purchased a new position in shares of JD.com in the third quarter worth approximately $36,749,000. 15.98% of the stock is currently owned by institutional investors and hedge funds.

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.