Investors Buy Large Volume of PDD Call Options (NASDAQ:PDD)

PDD Holdings Inc. (NASDAQ:PDD – Get Rating) saw unusually large options trading on Friday. Traders acquired 80,741 call options on the company. This is an increase of approximately 65% compared to the typical volume of 48,884 call options.

PDD Price Performance

Shares of NASDAQ PDD traded up $10.31 during trading hours on Friday, reaching $70.33. 17,785,775 shares of the stock traded hands, compared to its average volume of 8,945,217. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.85 and a current ratio of 1.85. PDD has a 52-week low of $38.80 and a 52-week high of $106.38. The company’s 50-day simple moving average is $68.76 and its two-hundred day simple moving average is $80.46.

PDD (NASDAQ:PDD – Get Rating) last posted its quarterly earnings results on Monday, March 20th. The company reported $8.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.00 by $7.34. PDD had a return on equity of 32.10% and a net margin of 23.93%. The business had revenue of $39.82 billion for the quarter, compared to analyst estimates of $40.74 billion. During the same period last year, the company earned $0.92 EPS. PDD’s revenue for the quarter was up 46.2% compared to the same quarter last year. Equities analysts predict that PDD will post 3.33 EPS for the current fiscal year.

Institutional Investors Weigh In On PDD

Several hedge funds and other institutional investors have recently added to or reduced their stakes in PDD. Fifth Third Bancorp lifted its holdings in shares of PDD by 70.1% during the first quarter. Fifth Third Bancorp now owns 410 shares of the company’s stock valued at $31,000 after purchasing an additional 169 shares in the last quarter. James Investment Research Inc. bought a new position in PDD in the fourth quarter valued at about $34,000. Compagnie Lombard Odier SCmA bought a new position in PDD in the fourth quarter valued at about $37,000. Hollencrest Capital Management bought a new position in PDD in the fourth quarter valued at about $41,000. Finally, Altshuler Shaham Ltd purchased a new stake in PDD in the fourth quarter worth about $43,000. 24.24% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

PDD has been the subject of several research analyst reports. HSBC lowered their target price on PDD from $118.00 to $115.00 and set a “buy” rating for the company in a research note on Tuesday, March 21st. Morgan Stanley upgraded PDD from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $77.00 to $113.00 in a report on Thursday, March 2nd. The Goldman Sachs Group lowered PDD from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $116.00 to $93.00 in a research report on Monday, April 24th. Citigroup lowered their price target on PDD from $115.00 to $100.00 in a research report on Tuesday, May 2nd. Finally, UBS Group lowered their price target on PDD from $110.00 to $100.00 and set a “buy” rating for the company in a research report on Tuesday, March 21st. One investment analyst has rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $104.89.

PDD Company Profile

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PDD Holdings, Inc is a multinational commerce group that owns and operates a portfolio of businesses. The company aims to bring more businesses and people into the digital economy so that local communities and small businesses can benefit from increased productivity and new opportunities. It has built a network of sourcing, logistics, and fulfillment capabilities, that support its underlying businesses.