How Should Investors View JD.com Inc. (JD) Insider Trading?

As of Thursday close, JD.com Inc.’s (NASDAQ:JD) stock was down -$1.16, moving down -2.33 percent to $48.67. The average number of shares traded per day over the past five days has been 16,433,859 shares. 1 time new highs have been achieved over the past 5 days, with a -$10.72 fall in that time frame. In the last twenty days, the average volume was 12,127,635, while in the previous 50 days, it was 17,403,313.


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Since last month, JD stock retreated -13.83%. Shares of the company fell to $46.83 on 05/12/22, the lowest level in the past month. A 52-week high of $92.69 was reached on 01/20/22 after having rallying from a 52-week low of $41.56. Since the beginning of this year, JD’s stock price has dropped by -30.54% or -$21.40, and marked a new high 6 times. However, the stock has declined by -47.49% since its 52-week high.

Valuation Metrics

The stock’s beta is 0.57. Besides these, the trailing price-to-sales (P/S) ratio of 0.59, the price-to-book (PB) ratio of 2.41, and the price-to-cash flow ratio of 13.26 may also be considered.

Financial Health

In the three months ended September 29, JD.com Inc.’s quick ratio stood at 1.00, while its current ratio was 1.40, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.04, and the total debt-to-equity ratio was 0.07. On the profitability front, the trailing twelve-month gross margin is 13.60% percent. In the year ended September 29, EBITDA margin amounted to 1.04%, whereas operating margins totaled 0.40%. Based on annual data, JD earned $20.25 billion in gross profit and brought in $149.33 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 0.80%. Return on equity (ROE) for the past 12 months was -1.70%.

In JD.com Inc.’s quarter-end financial report for September 29, it reported total debt of $1.47 billion against cash and short-term investments of $17.98 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. JD’s revenue rose 44.51% during the quarter, while net income inched up to $149.33 billion. While analysts expected JD.com Inc. to report $0.32 quarterly earnings, the actual figure was $0.5 per share, beating the consensus estimate by 56.20%. During the quarter, the company generated -$49.14 million in EBITDA. The liabilities of JD.com Inc. were 39.38 billion at the end of its most recent quarter ended September 29, and its total debt was $37.61 billion.

Technical Picture

This quick technical analysis looks at JD.com Inc.’s (JD) price momentum. With a historical volatility rate of 55.48%, the RSI 9-day stood at 30.36% on 12 May.

With respect to its five-day moving average, the current JD.com Inc. price is down by -18.05% percent or -$10.72. At present, JD shares trade -16.49% below its 20-day simple moving average and -31.49% percent below its 100-day simple moving average. However, the stock is currently trading approximately -32.21% below its SMA50 and -30.75% below its SMA200.

Stochastic coefficient K was 7.28% and Stochastic coefficient D was 10.17%, while ATR was 3.86. Given the Stochastic reading of 9.97% for the 14-day period, the RSI (14) reading has been calculated as 36.01%. As of today, the MACD Oscillator reading stands at -6.05, while the 14-day reading stands at -6.29.

Analyst Ratings

JD.com Inc. downgraded its rating on JD.com Inc. (NASDAQ: JD) to an Underweight in a note to investors on March 14, 2022. The analysts firm previously had an Overweight rating on the stock.JD.com Inc. (JD) has been rated Buy by analysts. According to 1 brokerage firm, JD is a sell, and 2 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 7 analysts rate JD.com Inc. stock as buy, with 43 recommending it as overweight.

With a median target price of $534.26, the current consensus forecast for the stock is $254.54 – $790.44. Based on these forecasts, analysts predict JD.com Inc. (JD) will achieve an average price target of $552.59.

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