PDD Sees Unusually High Options Volume (NASDAQ:PDD)

PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD) was the recipient of unusually large options trading activity on Wednesday. Stock traders bought 136,576 put options on the company. This is an increase of 124% compared to the typical volume of 60,994 put options.

PDD Stock Down 2.1%

PDD traded down $1.73 on Wednesday, reaching $79.86. 5,433,847 shares of the company traded hands, compared to its average volume of 8,501,325. The company has a market cap of $113.67 billion, a P/E ratio of 8.62, a price-to-earnings-growth ratio of 0.87 and a beta of -0.01. PDD has a one year low of $78.87 and a one year high of $139.41. The firm has a fifty day simple moving average of $94.60 and a two-hundred day simple moving average of $102.87.

PDD (NASDAQ:PDD) last issued its earnings results on Wednesday, May 27th. The company reported $1.38 EPS for the quarter, missing analysts’ consensus estimates of $2.40 by ($1.02). PDD had a return on equity of 24.32% and a net margin of 21.86%.The company had revenue of $15.41 billion during the quarter, compared to the consensus estimate of $15.92 billion. PDD’s revenue was up 11.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.57 earnings per share. On average, equities analysts forecast that PDD will post 9.92 earnings per share for the current year.

Institutional Investors Weigh In On PDD

A number of institutional investors and hedge funds have recently bought and sold shares of PDD. Advisory Services Network LLC grew its position in shares of PDD by 0.7% during the 3rd quarter. Advisory Services Network LLC now owns 15,458 shares of the company’s stock worth $2,043,000 after buying an additional 102 shares in the last quarter. West Family Investments Inc. raised its holdings in shares of PDD by 2.8% in the third quarter. West Family Investments Inc. now owns 4,026 shares of the company’s stock valued at $532,000 after acquiring an additional 110 shares in the last quarter. Wealthfront Advisers LLC lifted its stake in PDD by 3.6% in the first quarter. Wealthfront Advisers LLC now owns 3,609 shares of the company’s stock worth $369,000 after acquiring an additional 127 shares during the period. Range Financial Group LLC lifted its stake in PDD by 3.8% in the fourth quarter. Range Financial Group LLC now owns 3,620 shares of the company’s stock worth $410,000 after acquiring an additional 131 shares during the period. Finally, NewEdge Advisors LLC grew its holdings in PDD by 2.9% during the 1st quarter. NewEdge Advisors LLC now owns 4,677 shares of the company’s stock worth $478,000 after acquiring an additional 134 shares in the last quarter. 39.83% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages recently commented on PDD. Nomura downgraded shares of PDD from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 28th. Barclays lowered PDD from an “overweight” rating to an “equal weight” rating and dropped their target price for the company from $165.00 to $89.00 in a research report on Thursday, May 28th. The Goldman Sachs Group reaffirmed a “buy” rating on shares of PDD in a research note on Thursday, May 28th. Benchmark reduced their price target on PDD from $160.00 to $127.00 and set a “buy” rating on the stock in a report on Thursday, May 28th. Finally, Morgan Stanley set a $129.00 price objective on PDD in a report on Wednesday, May 27th. Seven analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $128.08.

PDD Company Profile

PDD (NASDAQ: PDD) is the holding company best known for operating Pinduoduo, a China-based, mobile-first e-commerce platform that emphasizes interactive, social shopping and group-buying mechanics to drive user engagement and low prices. Founded in 2015 by entrepreneur Colin Huang, the business has grown by connecting consumers directly with merchants and manufacturers, with particular emphasis on value-oriented goods and fresh agricultural produce. The company is based in Shanghai and completed a U.S.