Analysts Issue Research Notes On Pinduoduo Inc. (PDD)


Pinduoduo Inc. (NASDAQ:PDD) finished Thursday with an addition of $0.99 to close at $82.41, an upside of 1.22 percent. An average of 7,093,540 shares of common stock have been traded in the last five days. There was a fall of -$3.52 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 10,277,635 shares traded, while the 50-day average volume stands at 13,965,934.

PDD stock has increased by 5.07% in the last month. The company shares reached their 1-month lowest point of $78.82 on 12/28/22. With the stock rallying to its 52-week high on 12/13/22, shares of the company touched a low of $23.21 and a high of $93.16 in 52 weeks. It has reached a new high 16 times so far this year and achieved 41.36% or $24.11 in price. In spite of this, the price is down -11.54% from the 52-week high.

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Valuation Metrics

Pinduoduo Inc. (PDD) has a trailing price-to-earnings (P/E) ratio of 28.73. The stock’s beta is 0.68. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.27, the price-to-book (PB) ratio at 6.78, and the price-to-cash flow ratio at 19.30.

Financial Health

Further, the company has a long term debt to equity ratio of 0.15 and a total debt to equity ratio of 0.00 for the quarter ending June 29. Its gross profit as reported stood at $9.77 billion compared to revenue of $14.74 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 15.30%.

Earnings Surprise

For the three-month period that ended June 29, Pinduoduo Inc. had $13.58 billion in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $1.22 billion in the quarter, while revenues were grew 182.1%. The analyst consensus anticipated Pinduoduo Inc.’s latest quarter earnings to come in at $0.38 per share, but it turned out to be $1.05, a 176.30% surprise. For the quarter, EBITDA amounted to $1.47 billion.

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 29 December was 44.87%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.56%.

As of today, PDD’s price is $83.71 -4.10% or -$3.52 from its 5-day moving average. PDD is currently trading +0.45% higher than its 20-day SMA and +72.88% higher than its 100-day SMA. However, the stock’s current price level is +41.19% above the SMA50 and +201.76% above the SMA200.

The stochastic %K and %D were 21.35% and 16.85%, respectively, and the average true range (ATR) was 3.99. With the 14-day stochastic at 25.03% and the average true range at 4.19, the RSI (14) stands at 52.25%. The stock has reached -1.89 on the 9-day MACD Oscillator while the 14-day reading was at -3.12.

Analyst Ratings

Barclays upgraded Pinduoduo Inc. (NASDAQ: PDD) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal weight. The consensus rating for Pinduoduo Inc. (PDD) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PDD, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 8 analysts, while 41 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 $535.02 and $986.78, with a median target of $732.73. Taking a look at these predictions, the average price target given by analysts for Pinduoduo Inc. (PDD) stock is $728.59.


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