PDD (NASDAQ:PDD) Stock Price Declines 5.5% After Analyst Downgrade

PDD Holdings Inc. (NASDAQ:PDD) experienced a decline of 5.5% during trading on Friday after Jefferies Financial Group reduced its price target for the stock from $171.00 to $156.00. Despite this downgrade, Jefferies maintains a buy rating on PDD. During trading, PDD reached a low of $123.54 and was last seen trading at $123.69. A total of 3,888,119 shares changed hands, marking a 63% decrease compared to the average trading volume of 10,440,885 shares. The previous closing price for the stock was $130.92.

Recent Analyst Commentary

A few other equity research analysts have recently offered their insights on PDD as well. Dbs Bank changed its stance on PDD from a "strong-buy" rating to a "hold" rating in a report released on November 22nd. Additionally, JPMorgan Chase & Co. downgraded the stock from an "overweight" rating to a "neutral" rating, adjusting their price target from $170.00 to $105.00 on the same day. Benchmark also revised their price target for PDD, lowering it from $185.00 to $160.00 while still assigning a "buy" rating. The overall sentiment among analysts shows that four have rated the stock as a hold, eight have given it a buy rating, and two have assigned a strong buy rating. According to MarketBeat data, PDD holds a consensus rating of "Moderate Buy" and has an average price target of $168.09.

Institutional Investor Activity

Several significant investors have recently adjusted their holdings in PDD. UBS Asset Management, a part of UBS Americas LLC, significantly increased its position in PDD by 1,374.3% during the third quarter, now owning 13,145,211 shares worth approximately $1.77 billion after acquiring an additional 12,253,589 shares in that period. Norges Bank also acquired a new position in PDD valued at around $812 million in the fourth quarter. Other notable purchases include Sanders Capital LLC, which invested about $500 million in PDD, and FMR LLC, which raised its stake in PDD by 22.3%, owning 25,603,183 shares valued at about $2.48 billion. Furthermore, H&H International Investment LLC expanded its holdings in PDD by 3,693.8%, now controlling 3,907,600 shares worth approximately $526.78 million. Institutional investors and hedge funds collectively own 39.83% of PDD's stock.

PDD Financial Metrics

Currently, PDD has a debt-to-equity ratio of 0.02, a quick ratio of 2.15, and a current ratio of 2.15. The company's market capitalization stands at $172 billion with a price-to-earnings (P/E) ratio of 12.21 and a price/earnings to growth (PEG) ratio of 0.32. Furthermore, PDD's 50-day moving average is $115.12, while its 200-day moving average is $112.92.

Recent Earnings Announcement

PDD Holdings Inc. recently revealed its quarterly earnings on March 20th, posting an earnings per share (EPS) of $20.15 for the quarter, significantly exceeding the analysts' expected EPS of $2.56 by $17.59. The company reported a net margin of 29.05% and a return on equity of 46.08%. PDD's revenue for the quarter was $110.61 billion, slightly below the analyst estimates of $115.77 billion, compared to $17.32 earnings per share during the same quarter of the previous year. The revenue increased by 24.4% year-over-year. Analysts forecast that PDD will achieve an EPS of 10.24 for the current fiscal year.

About PDD Holdings Inc.

PDD Holdings Inc. is a multinational commerce group that operates a diverse range of businesses. Its primary platform, Pinduoduo, is an e-commerce site that offers a wide array of products across various categories such as agriculture, apparel, electronics, and personal care. PDD also operates Temu, an online marketplace.

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