Pinduoduo (NASDAQ:PDD) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Pinduoduo (NASDAQ:PDD) from a hold rating to a sell rating in a research report sent to investors on Friday, Zacks.com reports.

According to Zacks, “Pinduoduo Inc. provides an e-commerce platform allowing users to participate in group buying deals, primarily through Tencent’s Wechat app. Pinduoduo Inc. is based in Shanghai, China. “

Several other research analysts also recently weighed in on the stock. BidaskClub upgraded shares of Pinduoduo from a hold rating to a buy rating in a report on Thursday, October 22nd. BOCOM International downgraded shares of Pinduoduo from a buy rating to a neutral rating and set a $89.00 target price for the company. in a report on Monday, August 24th. UBS Group downgraded shares of Pinduoduo from a buy rating to a neutral rating and set a $95.00 target price for the company. in a report on Monday, August 24th. KeyCorp increased their target price on shares of Pinduoduo from $84.00 to $100.00 and gave the company an overweight rating in a report on Tuesday, July 14th. Finally, Barclays increased their target price on shares of Pinduoduo from $75.00 to $79.00 and gave the company an equal weight rating in a report on Tuesday, October 20th. Two investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and eight have given a buy rating to the company. The company currently has an average rating of Hold and an average price target of $74.77.

PDD opened at $86.92 on Friday. The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 0.19. The company’s fifty day moving average price is $80.46 and its two-hundred day moving average price is $75.24. Pinduoduo has a 1-year low of $30.20 and a 1-year high of $98.96. The company has a market cap of $96.82 billion, a price-to-earnings ratio of -79.74 and a beta of 1.28.

Pinduoduo (NASDAQ:PDD) last released its quarterly earnings data on Friday, August 21st. The company reported ($0.06) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.18) by $0.12. Pinduoduo had a negative net margin of 24.51% and a negative return on equity of 35.73%. The firm had revenue of $12.19 billion for the quarter, compared to the consensus estimate of $12.08 billion. During the same quarter in the prior year, the company posted ($0.04) earnings per share. The business’s revenue was up 67.3% on a year-over-year basis. As a group, equities analysts forecast that Pinduoduo will post -0.92 earnings per share for the current fiscal year.

A number of large investors have recently modified their holdings of the business. TRUE Private Wealth Advisors purchased a new stake in shares of Pinduoduo in the second quarter worth about $42,000. Cornerstone Advisors Inc. raised its stake in Pinduoduo by 75.6% in the second quarter. Cornerstone Advisors Inc. now owns 576 shares of the company’s stock valued at $49,000 after purchasing an additional 248 shares in the last quarter. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in Pinduoduo in the third quarter valued at approximately $57,000. Evolution Wealth Advisors LLC purchased a new stake in Pinduoduo in the second quarter valued at approximately $69,000. Finally, PNC Financial Services Group Inc. raised its stake in Pinduoduo by 59.0% in the second quarter. PNC Financial Services Group Inc. now owns 1,051 shares of the company’s stock valued at $91,000 after purchasing an additional 390 shares in the last quarter. Hedge funds and other institutional investors own 20.85% of the company’s stock.

Pinduoduo Company Profile

Pinduoduo Inc, through its subsidiaries, operates an e-commerce platform in the People's Republic of China. It operates Pinduoduo, a mobile platform that offers a range of products, including apparel, shoes, bags, mother and childcare products, food and beverage, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories.

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