Look For Institutional Buying In Pinduoduo Inc. (NASDAQ: PDD)


HSBC Global Asset Management (UK).. has recently announced that it has increased stake in Pinduoduo Inc. (NASDAQ:PDD) by 13.12%. After grabbing 11.82 million shares, the institutional investor is now in possession of 1.37 million shares of the Consumer Cyclical Company. The new investment brought the stake of investor firm to 1.74% having worth around $1.08 billion. Moreover, Renaissance Technologies LLC increased its share by 3.28 million to have a control over 11.15 million shares. And Hillhouse Capital Advisors Ltd. raised its holdings to 1.13 million shares by acquiring 9.86 million shares or 1.45% of the stake.

Pinduoduo Inc. (PDD) concluded trading on 08/27/20 at a closing price of $88.82, with 7.1 million shares of worth about $630.66 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -8.56% during that period and on Thursday the price saw a loss of about -0.48%. Currently the company’s common shares owned by public are about 1.16B shares, out of which, 670.26M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 37 analysts are covering the PDD stock and their offered price forecasts bring an average price target of $622.67. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $1036.92 and could fall to a lowest price of $276.54. Analysts also issued an outlook of 2.30 for the Pinduoduo Inc. stock for next 12 months. The stock’s current price level is -6.97% below of average price target set by the analysts, while a dip to estimated low would result in gain of 67.88 for the stock. However, touching the estimated high of $1036.92 would mean a gain of 91.43% for the stock.

Vanguard Total International Stoc, Vanguard Emerging Markets Stock I, and Fidelity Inv. Trust – Emerging Ma are the top 3 mutual funds which are holding stakes in Pinduoduo Inc. Vanguard Total International Stoc is currently holding 4.64 million shares of worth totaling $426.1 million. The company recently came selling 3260.0 shares which brought its stake up to 0.68% of the company’s outstanding shares. Vanguard Emerging Markets Stock I bought 9173.0 shares, after which its hold over company’s outstanding shares expand to 0.55%, leaving 3.74 million shares with the mutual fund that have a worth of about $343.72 million. Fidelity Inv. Trust – Emerging Ma, after selling 2.95 million shares, have now control over 0.44% of the stake in the company. It holds -0.71 million shares of worth $270.97 million.

Pinduoduo Inc. (NASDAQ: PDD) started trading at $89.00, below -$0.25 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $88.82, or with a loss of -0.48%. Stock saw a price change of -8.56% in past 5 days and over the past one month there was a price change of 5.70%. Year-to-date (YTD), PDD shares are showing a performance of 134.85% which increased to 187.16% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $30.02 but also hit the highest price of $98.96 during that period. While comparing its average daily trading volume of 9.54 million shares, we see that about 7.1 million changed hands on the day. The stock is currently trading -1.33% below its 20-day simple moving average (SMA20), while that difference is up 1.90% for SMA50 and it goes to 63.16% higher than SMA200.

HSBC Global Asset Management (UK).. acquired 11.82 million shares of Pinduoduo Inc. having value of about $1.08 billion. Data submitted at the U.S SEC by HSBC Global Asset Management (UK).. revealed that the firm now holds 1.37 million shares in the company valued at close to $121738201.94, or have control over 13.12% stake in the company. Pinduoduo Inc. (NASDAQ: PDD) currently have 1.16B outstanding shares and institutions hold larger chunk of about 36.10% of that. Holding of mutual funds in the company is about 23.35% while other institutional holders and individual stake holders have control over 9.52% and — of the stake respectively.

The stock has a current market capitalization of $123.00B. It has posted earnings per share of -$1.15 in the same period. It has Quick Ratio of 1.50 while making debt-to-equity ratio of 0.35. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for PDD, volatility over the week remained 5.48% while standing at 5.19% over the month.

Analysts are in expectations that Pinduoduo Inc. (PDD) stock would likely to be making an EPS of -$0.14 in the current quarter, while forecast for next quarter ESPS is -$0.02 and it is $0.46 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.21 which is -$0.07 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of -$0.2 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 56.60% while it is estimated to increase by 175.00% in next year.

Analysts at 37 brokerage firms have issued recommendations for the Pinduoduo Inc. (PDD)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.30. Out of those 37 Wall Street analysts, 14 recommended a “Buy” rating, while 15 were in favor recommending the stock as a “Hold” and 3 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Barclays on August 24, 2020 offering an Equal weight rating for the stock and assigned a target price range of between $76 and $75 to it. Coverage by UBS stated Pinduoduo Inc. (PDD) stock as a Neutral in their note to investors on August 24, 2020, suggesting a price target of $95 for the stock. On August 24, 2020, CLSA Downgrade their recommendations, while on June 08, 2020, Bernstein Initiated their ratings for the stock with a price target of $89. Stock get an Equal weight rating from Barclays on May 27, 2020.


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