Pinduoduo (NASDAQ:PDD) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Pinduoduo (NASDAQ:PDD) from a buy rating to a hold rating in a research report released on Wednesday morning, Zacks.com reports.

According to Zacks, “Pinduoduo Inc. provides an e-commerce platform allowing users to participate in group buying deals, primarily through Tencent’s Wechat app. Pinduoduo Inc. is based in Shanghai, China. “

A number of other equities analysts also recently issued reports on PDD. Bank of America lifted their price objective on shares of Pinduoduo from $29.00 to $34.00 and gave the stock a buy rating in a report on Thursday, August 22nd. Macquarie assumed coverage on shares of Pinduoduo in a report on Friday, July 5th. They set an outperform rating and a $30.00 price objective on the stock. KeyCorp boosted their price target on shares of Pinduoduo from $32.00 to $40.00 and gave the stock an overweight rating in a report on Thursday, August 22nd. CLSA assumed coverage on shares of Pinduoduo in a report on Friday, September 6th. They issued a buy rating and a $40.00 price target on the stock. Finally, Benchmark boosted their price target on shares of Pinduoduo from $28.00 to $39.00 and gave the stock a buy rating in a report on Thursday, August 22nd. Three analysts have rated the stock with a sell rating, four have assigned a hold rating and ten have given a buy rating to the stock. Pinduoduo currently has a consensus rating of Hold and an average price target of $32.51.

PDD traded up $4.46 during mid-day trading on Wednesday, reaching $39.96. 17,591,700 shares of the stock were exchanged, compared to its average volume of 7,427,867. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.77 and a current ratio of 1.77. The stock has a market capitalization of $38.29 billion, a PE ratio of -19.98 and a beta of 1.41. The company has a 50 day moving average price of $33.71 and a two-hundred day moving average price of $25.26. Pinduoduo has a 1 year low of $16.53 and a 1 year high of $40.00.

Pinduoduo (NASDAQ:PDD) last posted its quarterly earnings data on Wednesday, August 21st. The company reported ($0.12) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.25) by $0.13. The firm had revenue of $7.29 billion for the quarter, compared to the consensus estimate of $6.15 billion. Pinduoduo had a negative net margin of 30.74% and a negative return on equity of 28.55%. Pinduoduo’s quarterly revenue was up 169.1% compared to the same quarter last year. Sell-side analysts expect that Pinduoduo will post -0.62 EPS for the current fiscal year.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Comerica Bank lifted its holdings in Pinduoduo by 4.5% during the second quarter. Comerica Bank now owns 37,164 shares of the company’s stock valued at $742,000 after purchasing an additional 1,589 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Pinduoduo by 2.7% during the second quarter. Charles Schwab Investment Management Inc. now owns 136,500 shares of the company’s stock valued at $2,816,000 after purchasing an additional 3,540 shares during the last quarter. Quadrant Capital Group LLC purchased a new stake in Pinduoduo during the third quarter valued at about $130,000. Aviva PLC lifted its holdings in Pinduoduo by 8.7% during the second quarter. Aviva PLC now owns 58,500 shares of the company’s stock valued at $1,207,000 after purchasing an additional 4,700 shares during the last quarter. Finally, Steward Partners Investment Advisory LLC purchased a new stake in Pinduoduo during the second quarter valued at about $107,000. 13.00% of the stock is currently owned by institutional investors and hedge funds.

About Pinduoduo

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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