Is Pinduoduo Inc. (NASDAQ: PDD) Back In The Buying Zone?

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HSBC Global Asset Management (UK). recently announced the acquisition of new stake in Pinduoduo Inc. (NASDAQ:PDD). The institutional investor has increased its shareholding in the Consumer Cyclical company by 13.12% to 11.82 million shares with purchase of 1.37 million shares. This fresh investment now brings its stake to 1.74% valued currently at $1.08 billion. In addition, Renaissance Technologies LLC raised its holdings by 3.28 million to 11.15 million shares. And Hillhouse Capital Advisors Ltd. has lifted its position by 13.00% or 1.13 million shares – to 9.86 million shares.

With over 15.56 million Pinduoduo Inc. (PDD) shares trading Monday and a closing price of $83.16 on the day, the dollar volume was approximately $1.29 billion. The shares have shown a negative weekly performance of -6.75% and its price on 08/24/20 lost nearly -1.00%. Currently, there are 1.16B common shares owned by the public and among those 670.26M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 37 analysts who have offered their price forecasts for PDD have a consensus price objective of $617.08. The analysts have set the share’s price value over the next 12 months at a high of $1037.04 and a low of $276.54 should the stock experience a downside. Incidentally, analysts’ outlook for the Pinduoduo Inc. stock is 2.30 for the next 12 months. The average price target is -0.16% below its last price level and a downside to the estimated low will see the stock gain 69.93% over that period. But an upside of 91.98% will see the stock hit the forecast high price target while mean target price for the stock is $636.28.

The top 3 mutual fund holders in Pinduoduo Inc. are Vanguard Total International Stoc, Vanguard Emerging Markets Stock I, and Fidelity Inv. Trust – Emerging Ma. Vanguard Total International Stoc owns 4.64 million shares of the company’s stock, all valued at over $426.1 million. The company sold 3260.0 shares recently to bring their total holdings to about 0.68% of the shares outstanding. Vanguard Emerging Markets Stock I bought 9173.0 shares to see its total holdings expand to 3.74 million shares valued at over $343.72 million and representing 0.55% of the shares outstanding. Fidelity Inv. Trust – Emerging Ma sold -0.71 million shares to bring its total holdings to over 2.95 million shares at a value of $270.97 million. Fidelity Inv. Trust – Emerging Ma now owns shares totaling to 0.44% of the shares outstanding.

Shares of Pinduoduo Inc. (NASDAQ: PDD) opened at $85.62, up $1.62 from a prior closing price of $84.00. However, the script later closed the day at $83.16, down -1.00%. The company’s stock has a 5-day price change of -6.75% and 28.16% over the past three months. PDD shares are trading 119.88% year to date (YTD), with the 12-month market performance up to 181.99% higher. It has a 12-month low price of $29.06 and touched a high of $98.96 over the same period. Currently, 15.56 million shares have been traded, compared to an average intraday trading volume of 9.68 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.18%, -3.91%, and 54.60% respectively.

Institutional ownership of Pinduoduo Inc. (NASDAQ: PDD) shares accounts for 36.10% of the company’s 1.16B shares outstanding. Mutual fund holders own 23.35%, while other institutional holders and individual stakeholders account for 9.52% and — respectively.

It has a market capitalization of $115.16B. The earnings-per-share (ttm) stands at -$1.15. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.60% over the week and 5.07% over the month.

Analysts forecast that Pinduoduo Inc. (PDD) will achieve an EPS of -$0.15 for the current quarter, -$0.02 for the next quarter and $0.48 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.21 while analysts give the company a high EPS estimate of -$0.07. Comparatively, EPS for the current quarter was -$0.2 a year ago. Earnings per share for the fiscal year are expected to increase by 56.60%, and 175.00% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 37 brokerage firm advisors rate Pinduoduo Inc. (PDD) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 14 Wall Street analysts polled rate the stock as a buy, while 15 of the 37 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the PDD, a number of firms have released research notes about the stock. Barclays stated their Equal Weight rating for the stock in a research note on August 24, 2020, with the firm’s price target at $76-$75. UBS coverage for the Pinduoduo Inc. (PDD) stock in a research note released on August 24, 2020 offered a Neutral rating with a price target of $95. CLSA was of a view on August 24, 2020 that the stock is Outperform, while Bernstein gave the stock Outperform rating on June 08, 2020, issuing a price target of $89. Barclays on their part issued Equal Weight rating on May 27, 2020.

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