Market Analysts see Pinduoduo Inc. [PDD] gaining to $70. Time to buy?

Pinduoduo Inc. [NASDAQ: PDD] gained 8.64% or 4.92 points to close at $61.89 with a heavy trading volume of 22523144 shares. The company report on November 5, 2022 that Temu Further Increases Transparency to Help Consumers Make Better Decisions.


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Temu, the online marketplace offering year-round wholesale prices, is raising the bar on customer care by giving consumers unprecedented transparency on sellers and delivery schedules to help them make smarter purchase decisions.

As a third-party online marketplace, Temu connects small businesses to consumers directly through its website at www.temu.com and mobile apps (Android and iOS). But consumers can become overwhelmed by choices, especially if there is little to distinguish one small business from another.

It opened the trading session at $61.79, the shares rose to $62.90 and dropped to $58.41, the range by which the price of stock traded the whole day. The daily chart for PDD points out that the company has recorded 62.06% gains over the past six months. However, it is still -166.65% lower than its most recent low trading price.

If we look at the average trading volume of 13.15M shares, PDD reached to a volume of 22523144 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 $87.80 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 1.80. 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.

Barclays have made an estimate for Pinduoduo Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on October 27, 2022. The new note on the price target was released on August 30, 2022, representing the official price target for Pinduoduo Inc. stock. Previously, the target price had yet another raise to $70, while Morgan Stanley analysts kept a Equal-Weight rating on PDD stock. On May 16, 2022, analysts increased their price target for PDD shares from 27 to 55.

The Average True Range (ATR) for Pinduoduo Inc. is set at 5.09, with the Price to Sales ratio for PDD stock in the period of the last 12 months amounting to 5.59. The Price to Book ratio for the last quarter was 6.26, with the Price to Cash per share for the same quarter was set at 12.71. Price to Free Cash Flow for PDD in the course of the last twelve months was 16.40.

Trading performance analysis for PDD stock

Pinduoduo Inc. [PDD] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 16.88. With this latest performance, PDD shares dropped by -5.16% in over the last four-week period, additionally plugging by 62.06% over the last 6 months – not to mention a drop of -28.59% 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 57.51, with the RSI for the last a single of trading hit 63.74, and the three-weeks RSI is set at 54.67 for Pinduoduo Inc. [PDD]. The present Moving Average for the last 50 days of trading for this stock 61.30, while it was recorded at 56.24 for the last single week of trading, and 52.40 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 +7.34 and a Gross Margin at +65.40. Pinduoduo Inc.’s Net Margin is presently recorded at +8.27.

Return on Equity for this stock inclined to 11.48, with Return on Assets sitting at 4.57.

Pinduoduo Inc.’s liquidity data is similarly interesting compelling, with a Current Ratio set at 2.00.

Pinduoduo Inc. [PDD]: An earnings per share (EPS) analysis

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. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Pinduoduo Inc. go to 56.38%.

An analysis of insider ownership at Pinduoduo Inc. [PDD]

There are presently around $17,962 million, or 24.20% of PDD stock, in the hands of institutional investors. The top three institutional holders of PDD stocks are: BAILLIE GIFFORD & CO with ownership of 28,210,841, which is approximately 0.394% of the company’s market cap and around 0.17% of the total institutional ownership; FMR LLC, holding 21,861,397 shares of the stock with an approximate value of $1.35 billion in PDD stocks shares; and BLACKROCK INC., currently with $1.29 billion in PDD stock with ownership of nearly -1.233% 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 257 institutional holders increased their position in Pinduoduo Inc. [NASDAQ:PDD] by around 50,051,893 shares. Additionally, 153 investors decreased positions by around 35,105,326 shares, while 43 investors held positions by with 205,061,276 shares. The mentioned changes placed institutional holdings at 290,218,495 shares, according to the latest SEC report filing. PDD stock had 96 new institutional investments in for a total of 21,027,131 shares, while 52 institutional investors sold positions of 3,109,218 shares during the same period.

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