Analysis Of The Weekly Performance Of Pinduoduo Inc. (PDD)

Pinduoduo Inc. (NASDAQ:PDD) finished Wednesday with an addition of $4.06 to close at $97.58, an upside of 4.34 percent. An average of 6,672,720 shares of common stock have been traded in the last five days. There was a gain of $8.26 in the past week. The last 20 days have seen an average of 6,242,645 shares traded, while the 50-day average volume stands at 7,919,326.

PDD stock has decreased by -4.13% in the last month. The company shares reached their 1-month lowest point of $83.75 on 10/04/21. With the stock rallying to its 52-week high on 02/16/21, shares of the company touched a low of $74.12 and a high of $212.60 in 52 weeks. In spite of this, the price is down -54.10% from the 52-week high.


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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 31.09 for the sector. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 9.05, the price-to-book (PB) ratio at 12.15, and the price-to-cash flow ratio at 28.90.

Further, the company has a long term debt to equity ratio of 0.17 and a total debt to equity ratio of 0.17 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 61.10% against a 5-year average of 53.7%. Pinduoduo Inc.’s EBITDA margin for the year ending June 29 is -14.67%, while its operating margin for the same period stands at -6.40%. Its gross profit as reported stood at $6.16 billion compared to revenue of $9.12 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Pinduoduo Inc.’s return on assets was -1.90%, compared to -15.8% over the last five years. For the broader industry, ROE averaged 10.33 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Pinduoduo Inc. had $9.89 billion in cash. The analyst consensus anticipated Pinduoduo Inc.’s latest quarter earnings to come in at -$0.2 per share, but it turned out to be $0.44, a 320.00% surprise. For the quarter, EBITDA amounted to $309.37 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Pinduoduo Inc. (PDD) price momentum. RSI 9-day as of the close on 13 October was 59.14%, suggesting the stock is Neutral, with historical volatility in this time frame at 49.11%.

As of today, PDD’s price is $95.42 +9.25% or $8.26 from its 5-day moving average. PDD is currently trading -1.73% lower than its 20-day SMA and -24.53% lower than its 100-day SMA. However, the stock’s current price level is +9.75% above the SMA50 and -32.14% below the SMA200.

The stochastic %K and %D were 69.89% and 69.95%, respectively, and the average true range (ATR) was 4.79. With the 14-day stochastic at 83.62% and the average true range at 4.91, the RSI (14) stands at 54.66%. The stock has reached 3.41 on the 9-day MACD Oscillator while the 14-day reading was at 3.40.

Analyst Ratings

China Renaissance upgraded Pinduoduo Inc. (NASDAQ: PDD) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a a Hold.The consensus rating for Pinduoduo Inc. (PDD) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PDD, while 8 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 5 analysts, while 25 others rate it as a “buy”.

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

Analysts predict a range of price targets between $570.02 and $1387.72, with a median target of $861.10. Taking a look at these predictions, the average price target given by analysts for Pinduoduo Inc. (PDD) stock is $881.76.

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