Research Recommendations For Pinduoduo Inc. (PDD): Here is What You Should Know

Pinduoduo Inc. (NASDAQ:PDD) saw an upside of 1.34% to close Friday at $96.22 after adding $1.27 on the day. The 5-day average trading volume is 6,803,840 shares of the company’s common stock. It has gained $97.00 in the past week. An average of 6,481,565 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 7,929,754.

PDD’s 1-month performance is -7.73% or -$8.50 on its low of $83.75 reached on 10/04/21. The company’s shares have touched a 52-week low of $73.01 and high of $212.60, with the stock’s rally to the 52-week high happening on 02/16/21. YTD, PDD has lost -45.84% or -$81.45. However, the current price is down -54.74%% from the 52-week high price.

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Valuation Metrics

Pinduoduo Inc. (PDD) has a trailing price-to-earnings (P/E) ratio of 21.00 for the broader industry and 20.34 for the sector.PDD stock has a beta of 0.00. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 8.92 while the price-to-book (PB) in the most recent quarter is 11.98, with the price to cash flow ratio at 28.50.

As well, the company’s long term debt to equity for the quarter ending June 29 was 0.17, while the total debt to equity was 0.17. In terms of profitability, the gross margin trailing 12 months is 61.10%. The trailing 12-month EBITDA margin is -14.67% while for the period ending June 29; Pinduoduo Inc.’s operating margin was -6.40%. The firm’s gross profit as reported stood at $6.16 billion against revenue of $9.12 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Pinduoduo Inc.’s cash and short-term investments amounted to $9.89 billion against total debt of $12.07 billion. Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected PDD to announce -$0.2 per share in earnings in its latest quarter, but it posted $0.44, representing a 320.00% surprise. EBITDA for the quarter stood at more than $309.37 million. PDD stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 14.22 billion, with total debt at $12.07 billion

Technical Picture

Let’s look briefly at Pinduoduo Inc. (PDD) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 08 October was 57.23% to suggest the stock is trending Neutral, with historical volatility in this time period at 62.01%.

The stock’s 5-day moving average is $90.60, reflecting a +9.15% or $8.07 change from its current price. PDD is currently trading -7.26% above its 20-day SMA, -21.29% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +4.47% and -30.79% respectively.

Stochastic %K and %D was 59.70% and 39.77% and the average true range (ATR) pointed at 4.70. The RSI (14) points at 52.94%, while the 14-day stochastic is at 78.28% with the period’s ATR at 4.88. The stock’s 9-day MACD Oscillator is pointing at 3.51 and 1.23 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Pinduoduo Inc. (NASDAQ: PDD), China Renaissance upgraded it to a Buy rating. They previously had a Hold rating on the stock. Analysts offering their rating for PDD stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate PDD as a “sell,”, while 8 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 5 rates the stock as overweight while 25 have offered a “buy” rating.

What is PDD’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $570.02 and a high of $1387.72, with their median price target at $861.10. Looking at these predictions, the average price target given by analysts is for Pinduoduo Inc. (PDD) stock is $881.76.


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