Pinduoduo Inc. [NASDAQ: PDD] loss -12.26% on the last trading session, reaching $137.60 price per share at the time. The company report on March 2, 2021 that Pinduoduo doubles agricultural GMV to record 270 billion yuan in 2020.
Pinduoduo Inc. (“Pinduoduo”, or the “Company”) (NASDAQ: PDD), China’s largest agriculture platform, doubled the value of agricultural orders it handled last year, exceeding the company’s earlier estimate as the pandemic pushed more people to order food and groceries online.
The Nasdaq-listed company recorded more than 270 billion yuan ($42 billion) in agriculture-related GMV in 2020, up from 136 billion yuan in 2019. The firm had said last December it was on track to hit 250 billion yuan in GMV for the category.
Pinduoduo Inc. represents 1.20 billion in outstanding shares, while the company has a total market value of $170.44 billion with the latest information. PDD stock price has been found in the range of $136.00 to $155.89.
If compared to the average trading volume of 7.83M shares, PDD reached a trading volume of 13956676 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying 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 $173.46 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 1.90. 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.
KeyBanc Capital Markets have made an estimate for Pinduoduo Inc. shares, keeping their opinion on the stock as Sector Weight, with their previous recommendation back on January 26, 2021. While these analysts kept the previous recommendation, Bernstein raised their target price to Outperform. The new note on the price target was released on January 25, 2021, representing the official price target for Pinduoduo Inc. stock. Previously, the target price had yet another raise from $85 to $192, while Nomura kept a Buy rating on PDD stock. On November 13, 2020, analysts increased their price target for PDD shares from 80 to 160.
The Average True Range (ATR) for Pinduoduo Inc. is set at 12.77, with the Price to Sales ratio for PDD stock in the period of the last 12 months amounting to 25.21. The Price to Book ratio for the last quarter was 37.49, with the Price to Cash per share for the same quarter was set at 5.69. Price to Free Cash Flow for PDD in the course of the last twelve months was 48.26 with Quick ratio for the last quarter at 1.40.
Trading performance analysis for PDD stock
Pinduoduo Inc. [PDD] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -26.08. With this latest performance, PDD shares dropped by -30.24% in over the last four-week period, additionally plugging by 60.45% over the last 6 months – not to mention a rise of 274.32% 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 29.01, with the RSI for the last a single of trading hit 21.13, and the three-weeks RSI is set at 35.40 for Pinduoduo Inc. [PDD]. The present Moving Average for the last 50 days of trading for this stock 176.43, while it was recorded at 159.42 for the last single week of trading, and 115.38 for the last 200 days.
Pinduoduo Inc. [PDD]: A deeper dive into fundamental analysis
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.
Pinduoduo Inc. [PDD]: An earnings per share (EPS) analysis
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.
An analysis of insider ownership at Pinduoduo Inc. [PDD]
There are presently around $36,535 million, or 31.50% of PDD stock, in the hands of institutional investors. The top three institutional holders of PDD stocks are: BAILLIE GIFFORD & CO with ownership of 25,369,450, which is approximately 6.145% of the company’s market cap and around 1.05% of the total institutional ownership; BLACKROCK INC., holding 19,350,344 shares of the stock with an approximate value of $2.66 billion in PDD stocks shares; and FMR LLC, currently with $2.24 billion in PDD stock with ownership of nearly 19.008% 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 291 institutional holders increased their position in Pinduoduo Inc. [NASDAQ:PDD] by around 57,898,892 shares. Additionally, 123 investors decreased positions by around 21,493,518 shares, while 20 investors held positions by with 186,120,660 shares. The mentioned changes placed institutional holdings at 265,513,070 shares, according to the latest SEC report filing. PDD stock had 147 new institutional investments in for a total of 9,488,457 shares, while 32 institutional investors sold positions of 985,648 shares during the same period.