On September 3, 2023, the Public Sector Pension Investment Board announced that it has reduced its stake in PDD Holdings Inc. (NASDAQ:PDD) by 0.8% during the first quarter of the year. According to its most recent disclosure with the Securities and Exchange Commission, the fund now owns 285,074 shares of the company’s stock after selling 2,300 shares.
The value of Public Sector Pension Investment Board’s holdings in PDD amounts to $21,637,000 as of its most recent SEC filing.
In terms of financial performance, PDD recently reported its earnings results for the quarter ending on August 29th. The company exceeded analysts’ consensus estimates by reporting earnings per share of $10.47 for the quarter, compared to an expected $7.30 per share. Furthermore, PDD generated $52.28 billion in revenue during this period, surpassing analyst estimates of $43.39 billion.
It is worth noting that PDD achieved a return on equity of 34.10% and a net margin of 25.63% during this time frame. This indicates strong profitability and efficient utilization of resources within the company.
Comparing this quarter’s performance to the same period last year reveals significant growth for PDD, as quarterly revenue increased by 66.3%. In contrast, during Q2 of the previous year, the company had earned only $0.93 per share.
Equities research analysts anticipate that PDD Holdings Inc.’s fiscal year will yield an earnings per share figure of 3.61.
PDD Holdings Inc., being a multinational commerce group, holds ownership over various businesses including Pinduoduo and Temu.
Pinduoduo operates an e-commerce platform that offers products across multiple categories such as agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverages, electronic appliances,
furniture and household goods, cosmetics and personal care, sports and fitness items, as well as auto accessories. With such a diverse range of offerings, Pinduoduo caters to a wide customer base.
On the other hand, Temu is an online marketplace that operates under the umbrella of PDD Holdings Inc. It provides a platform for buyers and sellers to connect in a convenient and efficient manner.
PDD Holdings Inc.’s stake reduction by Public Sector Pension Investment Board showcases their strategic decision-making in managing their investment portfolio. By adjusting their holdings in PDD, they are demonstrating attentiveness to market trends and opportunities.
Overall, with its strong financial performance and diverse business portfolio, PDD Holdings Inc. seems poised for continued growth in the future.
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PDD Holdings Inc.’s Stock Attracts Attention and Positive Outlook from Institutional Investors and Analysts
As of September 3, 2023, various institutional investors and hedge funds have made changes to their stakes in PDD Holdings Inc. Fifth Third Bancorp, for example, increased its holdings in the company by 70.1% during the first quarter. The firm now owns 410 shares of the company’s stock valued at $31,000 after acquiring an additional 169 shares.
Compagnie Lombard Odier SCmA also entered the picture by purchasing a new stake in PDD during the fourth quarter, which is estimated to be worth about $37,000. Similarly, Altshuler Shaham Ltd joined in by acquiring a new stake valued at approximately $43,000 during the same period.
Captrust Financial Advisors experienced a significant increase of 108.5% in its holdings of PDD during the first quarter. As a result, they now possess 636 shares of the company’s stock worth $26,000 after buying an additional 331 shares.
Lastly, Harel Insurance Investments & Financial Services Ltd. also joined other institutional investors in purchasing a new stake in PDD during the first quarter. Their investment is estimated to be worth around $116,000.
Overall, institutional investors currently hold about 31.08% of PDD’s stock.
On Friday, PDD’s shares traded up $3.95 and reached $102.92 during mid-day trading. The trading volume amounted to 7,835,331 shares compared to its average volume of 9,500,461 shares. It is noteworthy that PDD Holdings Inc.’s stock has experienced significant fluctuations over the past year with a low point of $38.80 and a high point of $106.38.
The market capitalization of PDD is currently valued at $135.81 billion while boasting a price-earnings ratio (P/E) of 26.60 and a price-earnings to growth ratio (PEG) of 1.14. The stock has a beta of 0.76.
In terms of moving averages, the company’s 50-day simple moving average stands at $79.34, while its two-hundred day simple moving average is recorded as $76.82.
When it comes to financials, PDD Holdings Inc. exhibits a current ratio and quick ratio of 1.94 each, indicating its ability to meet short-term obligations efficiently. Additionally, the company maintains a debt-to-equity ratio of 0.01, signaling a conservative capital structure.
Analysts from various brokerages have also weighed in on PDD recently. The Goldman Sachs Group upgraded the stock from a “neutral” rating to a “buy” rating and increased their price target from $99.00 to $129.00 in a report published on Wednesday.
Morgan Stanley followed suit by raising their price target on PDD from $110.00 to $120.00 in another report released on Tuesday. Citigroup also increased their price target from $110.00 to $125.00 in their report published that same day.
Bank of America joined the bullish sentiment by raising their price objective from $97.00 to $112.00 and assigning the stock a “buy” rating in their research report on Tuesday as well.
Benchmark analysts went even further by increasing their price objective for PDD from $125.00 to $140.00 and granting the stock a “buy” rating in their research report released on Wednesday.
All these reports reflect positive sentiments towards PDD’s future performance, with twelve research analysts giving the stock an overall “Buy” rating based on data gathered from Bloomberg.com.
Considering all these factors, it becomes clear that PDD Holdings Inc.’s shares are attracting significant attention and garnering positive outlooks from both institutional investors and analysts alike.
