Pinduoduo Inc. [NASDAQ: PDD] stock went on a downward path that fall over -1.74% on Monday, amounting to a one-week price decrease of less than -0.69%. The company report on November 18, 2020 that Pinduoduo announces pricing of convertible notes and equity offerings, set to raise US$6.1 billion including over-allotment.
Pinduoduo Inc. (“Pinduoduo” or the “Company”) (NASDAQ: PDD), an innovative and fast-growing technology platform and one of the leading Chinese e-commerce players, announced the pricing of its offerings of convertible notes and equity, with a total fundraising amount of US$6.1 billion if an over-allotment is included.
The Nasdaq-listed interactive mobile commerce company offered US$1.75 billion in convertible senior notes due 2025, and priced its upsized offering of 28.7 million American Depositary Shares (“ADS”) at US$125 per ADS. The company will sell an additional US$250 million in notes and 4.305 million ADS should a greenshoe option be exercised in full. The offer was oversubscribed.
Over the last 12 months, PDD stock rose by 314.97%. The one-year Pinduoduo Inc. stock forecast points to a potential downside of -5.1. The average equity rating for PDD stock is currently 2.20, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $161.99 billion, with 1.20 billion shares outstanding and 669.62 million shares in the current float. Compared to the average trading volume of 9.08M shares, PDD stock reached a trading volume of 10969290 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Pinduoduo Inc. [PDD]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PDD shares is $134.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PDD stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Nomura have made an estimate for Pinduoduo Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on November 16, 2020. While these analysts kept the previous recommendation, BofA Securities dropped their target price from $80 to $160. The new note on the price target was released on November 13, 2020, representing the official price target for Pinduoduo Inc. stock. Previously, the target price had yet another raise to $123, while Goldman analysts kept a Buy rating on PDD stock.
The Average True Range (ATR) for Pinduoduo Inc. is set at 8.89, with the Price to Sales ratio for PDD stock in the period of the last 12 months amounting to 24.37. The Price to Book ratio for the last quarter was 39.07, with the Price to Cash per share for the same quarter was set at 6.03. Price to Free Cash Flow for PDD in the course of the last twelve months was 46.65 with Quick ratio for the last quarter at 1.40.
PDD Stock Performance Analysis:
Pinduoduo Inc. [PDD] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.69. With this latest performance, PDD shares gained by 62.29% in over the last four-week period, additionally plugging by 133.84% over the last 6 months – not to mention a rise of 314.97% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PDD stock in for the last two-week period is set at 68.56, with the RSI for the last a single of trading hit 67.33, and the three-weeks RSI is set at 67.76 for Pinduoduo Inc. [PDD]. The present Moving Average for the last 50 days of trading for this stock 94.49, while it was recorded at 137.40 for the last single week of trading, and 71.52 for the last 200 days.
Insight into Pinduoduo Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Pinduoduo Inc. [PDD] shares currently have an operating margin of -28.33 and a Gross Margin at +78.92. Pinduoduo Inc.’s Net Margin is presently recorded at -23.12.
Return on Total Capital for PDD is now -34.16, given the latest momentum, and Return on Invested Capital for the company is -28.45. Return on Equity for this stock declined to -32.11, with Return on Assets sitting at -11.72. When it comes to the capital structure of this company, Pinduoduo Inc. [PDD] has a Total Debt to Total Equity ratio set at 26.98. Additionally, PDD Total Debt to Total Capital is recorded at 21.25, with Total Debt to Total Assets ending up at 8.74. Long-Term Debt to Equity for the company is recorded at 22.86, with the Long-Term Debt to Total Capital now at 18.01.
Reflecting on the efficiency of the workforce at the company, Pinduoduo Inc. [PDD] managed to generate an average of -$173,019 per employee. Receivables Turnover for the company is 11.77 with a Total Asset Turnover recorded at a value of 0.51.Pinduoduo Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 1.40.
PDD Stock EPS
With the latest financial reports released by the company, Pinduoduo Inc. posted -0.1/share EPS, while the average EPS was predicted by analysts to be reported at -0.22/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 54.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PDD.
Pinduoduo Inc. [PDD] Insider Position Details
There are presently around $32,346 million, or 28.60% of PDD stock, in the hands of institutional investors. The top three institutional holders of PDD stocks are: BAILLIE GIFFORD & CO with ownership of 23,900,719, which is approximately -7.301% of the company’s market cap and around 1.00% of the total institutional ownership; TIGER GLOBAL MANAGEMENT LLC, holding 14,253,066 shares of the stock with an approximate value of $2.01 billion in PDD stocks shares; and BLACKROCK INC., currently with $1.96 billion in PDD stock with ownership of nearly -4.266% of the company’s market capitalization.
Positions in Pinduoduo Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 185 institutional holders increased their position in Pinduoduo Inc. [NASDAQ:PDD] by around 35,619,776 shares. Additionally, 117 investors decreased positions by around 40,909,703 shares, while 26 investors held positions by with 152,790,523 shares. The mentioned changes placed institutional holdings at 229,320,002 shares, according to the latest SEC report filing. PDD stock had 66 new institutional investments in for a total of 9,387,703 shares, while 38 institutional investors sold positions of 3,525,585 shares during the same period.