PDD (NASDAQ:PDD) Stock Rating Lowered by Nomura

PDD (NASDAQ:PDD) was downgraded by equities research analysts at Nomura from a “strong-buy” rating to a “hold” rating in a report issued on Thursday,Zacks.com reports.

PDD has been the subject of several other reports. Wall Street Zen downgraded shares of PDD from a “buy” rating to a “hold” rating in a report on Saturday, January 31st. Benchmark dropped their target price on shares of PDD from $160.00 to $127.00 and set a “buy” rating for the company in a report on Thursday. Barclays restated an “equal weight” rating and set a $89.00 target price (down from $165.00) on shares of PDD in a report on Thursday. The Goldman Sachs Group restated a “buy” rating on shares of PDD in a report on Thursday. Finally, Morgan Stanley set a $129.00 target price on shares of PDD in a report on Wednesday. Seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $131.33.

PDD Stock Down 4.1%

NASDAQ:PDD opened at $83.03 on Thursday. PDD has a fifty-two week low of $81.56 and a fifty-two week high of $139.41. The stock has a market cap of $118.18 billion, a PE ratio of 8.97, a price-to-earnings-growth ratio of 0.82 and a beta of 0.04. The firm’s fifty day simple moving average is $98.70 and its 200-day simple moving average is $106.55.

PDD (NASDAQ:PDD) last released its quarterly earnings data on Friday, May 15th. The company reported $0.34 EPS for the quarter. PDD had a net margin of 21.86% and a return on equity of 25.04%. The business had revenue of $15.41 million for the quarter. Equities analysts anticipate that PDD will post 10.98 earnings per share for the current year.

Institutional Investors Weigh In On PDD

Several hedge funds have recently modified their holdings of the stock. Advisory Services Network LLC lifted its position in PDD by 0.7% during the 3rd quarter. Advisory Services Network LLC now owns 15,458 shares of the company’s stock worth $2,043,000 after acquiring an additional 102 shares during the last quarter. West Family Investments Inc. lifted its position in PDD by 2.8% during the 3rd quarter. West Family Investments Inc. now owns 4,026 shares of the company’s stock worth $532,000 after acquiring an additional 110 shares during the last quarter. Wealthfront Advisers LLC lifted its position in PDD by 3.6% during the 1st quarter. Wealthfront Advisers LLC now owns 3,609 shares of the company’s stock worth $369,000 after acquiring an additional 127 shares during the last quarter. Range Financial Group LLC lifted its position in PDD by 3.8% during the 4th quarter. Range Financial Group LLC now owns 3,620 shares of the company’s stock worth $410,000 after acquiring an additional 131 shares during the last quarter. Finally, Focus Partners Wealth lifted its position in PDD by 1.0% during the 4th quarter. Focus Partners Wealth now owns 13,886 shares of the company’s stock worth $1,512,000 after acquiring an additional 142 shares during the last quarter. 39.83% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting PDD

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.