Pinduoduo Inc. [NASDAQ: PDD] plunged by -$8.28 during the normal trading session on Monday and reaching a high of $174.89 during the day while it closed the day at $172.49. The company report on December 21, 2020 that Pinduoduo announces US$500 million private share placement to a global institutional investor.
Pinduoduo Inc. (“Pinduoduo” or the “Company”) (NASDAQ: PDD) said a global institutional investor will purchase close to US$500 million of new shares through a private placement as the agriculture-focused technology platform pursues its strategic priority of raising farm productivity and improving food security and quality.
The investor has also agreed to a six-month lockup period for the newly issued Class A ordinary shares, representing approximately 0.3% of Pinduoduo’s post-issuance total outstanding shares. The transaction was priced with reference to the volume-weighted average price of the last five trading days and is expected to close on or about Dec. 24, 2020.
Pinduoduo Inc. stock has also gained 3.42% of its value over the past 7 days. However, PDD stock has inclined by 116.86% in the 3 months of the year. Over the past six months meanwhile, it has gained 95.39% and lost -2.92% year-on date.
The market cap for PDD stock reached $210.77 billion, with 1.20 billion shares outstanding and 698.32 million shares in the current float. Compared to the average trading volume of 9.57M shares, PDD reached a trading volume of 9334359 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about 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 $145.03 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 2.10. 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 11.87, with the Price to Sales ratio for PDD stock in the period of the last 12 months amounting to 31.21. The Price to Book ratio for the last quarter was 47.00, with the Price to Cash per share for the same quarter was set at 5.76. Price to Free Cash Flow for PDD in the course of the last twelve months was 59.74 with Quick ratio for the last quarter at 1.40.
PDD stock trade performance evaluation
Pinduoduo Inc. [PDD] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.42. With this latest performance, PDD shares gained by 16.89% in over the last four-week period, additionally plugging by 95.39% over the last 6 months – not to mention a rise of 348.96% 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 57.67, with the RSI for the last a single of trading hit 55.57, and the three-weeks RSI is set at 58.82 for Pinduoduo Inc. [PDD]. The present Moving Average for the last 50 days of trading for this stock 141.48, while it was recorded at 179.47 for the last single week of trading, and 90.50 for the last 200 days.
Pinduoduo Inc. [PDD]: An insightful look at the core 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.
Earnings per share (EPS) analysis for Pinduoduo Inc. [PDD] stock
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 Ownership positions
There are presently around $39,207 million, or 27.70% 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 1.05% of the total institutional ownership; TIGER GLOBAL MANAGEMENT LLC, holding 14,253,066 shares of the stock with an approximate value of $2.46 billion in PDD stocks shares; and BLACKROCK INC., currently with $2.4 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 March and at the time of the March reporting period, where 186 institutional holders increased their position in Pinduoduo Inc. [NASDAQ:PDD] by around 35,433,356 shares. Additionally, 113 investors decreased positions by around 40,871,947 shares, while 27 investors held positions by with 150,992,256 shares. The mentioned changes placed institutional holdings at 227,297,559 shares, according to the latest SEC report filing. PDD stock had 68 new institutional investments in for a total of 9,260,307 shares, while 37 institutional investors sold positions of 3,519,486 shares during the same period.