JD.com (NASDAQ:JD) Shares Gap Up – Should You Buy?

JD.com, Inc. (NASDAQ:JD) shares gapped up prior to trading on Wednesday . The stock had previously closed at $26.49, but opened at $27.47. JD.com shares last traded at $27.4490, with a volume of 2,071,672 shares trading hands.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Weiss Ratings cut shares of JD.com from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, June 23rd. Nomura increased their target price on shares of JD.com from $40.00 to $41.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Morgan Stanley raised their target price on JD.com from $25.00 to $27.00 and gave the company an “underweight” rating in a research report on Wednesday, May 13th. Susquehanna upped their price target on JD.com from $30.00 to $35.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Finally, Benchmark increased their price objective on shares of JD.com from $38.00 to $42.00 and gave the company a “buy” rating in a report on Wednesday, May 13th. Nine research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, JD.com presently has an average rating of “Moderate Buy” and an average target price of $37.62.

JD.com Stock Performance

The stock has a market capitalization of $34.47 billion, a PE ratio of 21.55 and a beta of 0.40. The company has a quick ratio of 0.87, a current ratio of 1.18 and a debt-to-equity ratio of 0.22. The stock has a fifty day moving average of $28.99 and a 200-day moving average of $28.77.

JD.com (NASDAQ:JD) last posted its quarterly earnings results on Tuesday, March 31st. The information services provider reported $0.37 earnings per share for the quarter. The company had revenue of $45.79 billion for the quarter. JD.com had a return on equity of 5.90% and a net margin of 1.04%. Equities analysts anticipate that JD.com, Inc. will post 2.77 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. SG Americas Securities LLC boosted its position in JD.com by 139.0% in the 1st quarter. SG Americas Securities LLC now owns 4,334,816 shares of the information services provider’s stock valued at $128,181,000 after buying an additional 2,521,045 shares during the last quarter. SIH Partners LLLP increased its holdings in JD.com by 74.1% in the fourth quarter. SIH Partners LLLP now owns 4,991,448 shares of the information services provider’s stock valued at $143,255,000 after buying an additional 2,125,212 shares during the last quarter. Syquant Capital Sas bought a new position in JD.com during the fourth quarter worth $35,323,000. Northwestern Mutual Wealth Management Co. lifted its holdings in JD.com by 1,172.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,234,636 shares of the information services provider’s stock worth $35,434,000 after acquiring an additional 1,137,592 shares during the last quarter. Finally, HighTower Advisors LLC lifted its stake in JD.com by 197.2% in the fourth quarter. HighTower Advisors LLC now owns 1,384,810 shares of the information services provider’s stock valued at $39,744,000 after buying an additional 918,880 shares during the last quarter. Hedge funds and other institutional investors own 15.98% of the company’s stock.

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.