PDD (NASDAQ:PDD) Shares Gap Up – Should You Buy?

PDD Holdings Inc. (NASDAQ:PDD) shares gapped up before the market opened on Tuesday . The stock had previously closed at $124.86, but opened at $128.22. PDD shares last traded at $134.36, with a volume of 5,745,188 shares changing hands.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Barclays cut their price objective on PDD from $224.00 to $158.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 27th. Sanford C. Bernstein cut their price target on shares of PDD from $235.00 to $170.00 and set an “outperform” rating on the stock in a report on Tuesday, August 27th. Bank of America decreased their price objective on shares of PDD from $206.00 to $170.00 and set a “buy” rating for the company in a report on Tuesday, August 27th. Jefferies Financial Group dropped their target price on shares of PDD from $193.00 to $151.00 and set a “buy” rating on the stock in a research note on Monday, August 26th. Finally, Daiwa America upgraded shares of PDD to a “strong-buy” rating in a research note on Tuesday, August 27th. One investment analyst has rated the stock with a hold rating, nine have assigned a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $182.40.

PDD Stock Up 4.5 %

The stock’s 50 day moving average is $120.96 and its 200 day moving average is $130.65. The company has a market capitalization of $179.51 billion, a PE ratio of 17.80, a PEG ratio of 0.33 and a beta of 0.71. The company has a debt-to-equity ratio of 0.02, a quick ratio of 2.11 and a current ratio of 2.11.

PDD (NASDAQ:PDD) last posted its earnings results on Monday, August 26th. The company reported $23.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.66 by $20.58. PDD had a return on equity of 48.14% and a net margin of 28.92%. The firm had revenue of $97.06 billion for the quarter, compared to the consensus estimate of $100.17 billion. During the same quarter in the prior year, the business posted $1.27 earnings per share. The business’s quarterly revenue was up 85.7% on a year-over-year basis. On average, sell-side analysts anticipate that PDD Holdings Inc. will post 11.05 EPS for the current fiscal year.

Institutional Investors Weigh In On PDD

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Ballentine Partners LLC boosted its stake in PDD by 4.6% during the second quarter. Ballentine Partners LLC now owns 2,701 shares of the company’s stock valued at $359,000 after buying an additional 120 shares during the period. Parallel Advisors LLC boosted its position in shares of PDD by 5.3% during the 2nd quarter. Parallel Advisors LLC now owns 2,436 shares of the company’s stock valued at $324,000 after acquiring an additional 122 shares during the last quarter. Legacy Capital Group California Inc. grew its holdings in shares of PDD by 6.8% during the second quarter. Legacy Capital Group California Inc. now owns 2,080 shares of the company’s stock worth $277,000 after purchasing an additional 133 shares in the last quarter. Oppenheimer & Co. Inc. increased its position in shares of PDD by 1.2% in the first quarter. Oppenheimer & Co. Inc. now owns 14,010 shares of the company’s stock worth $1,629,000 after purchasing an additional 168 shares during the last quarter. Finally, CWM LLC raised its stake in PDD by 19.3% in the third quarter. CWM LLC now owns 1,046 shares of the company’s stock valued at $141,000 after purchasing an additional 169 shares in the last quarter. 29.07% of the stock is currently owned by institutional investors.

About PDD

PDD Holdings Inc, a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace.