PDD (NASDAQ:PDD) Stock Sees Heavy Call Option Buying

PDD Holdings Inc. Sponsored ADR (NASDAQ:PDD) saw unusually large options trading on Monday. Stock traders acquired 44,077 call options on the company. This represents an increase of approximately 33% compared to the average daily volume of 33,086 call options.

Hedge Funds Weigh In On PDD

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wealthfront Advisers LLC increased its stake in shares of PDD by 3.6% in the 1st quarter. Wealthfront Advisers LLC now owns 3,609 shares of the company’s stock valued at $369,000 after acquiring an additional 127 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of PDD by 2.9% in the 1st quarter. NewEdge Advisors LLC now owns 4,677 shares of the company’s stock valued at $478,000 after acquiring an additional 134 shares during the period. Commonwealth Equity Services LLC boosted its stake in PDD by 11.3% during the 3rd quarter. Commonwealth Equity Services LLC now owns 3,016 shares of the company’s stock worth $235,000 after acquiring an additional 307 shares during the last quarter. Frank Rimerman Advisors LLC boosted its stake in PDD by 9.2% during the 3rd quarter. Frank Rimerman Advisors LLC now owns 4,951 shares of the company’s stock worth $386,000 after acquiring an additional 416 shares during the last quarter. Finally, Grove Bank & Trust acquired a new position in PDD during the second quarter valued at approximately $38,000. Institutional investors own 39.83% of the company’s stock.

PDD Price Performance

Shares of PDD stock traded up $3.07 on Monday, hitting $81.68. 7,491,577 shares of the company’s stock traded hands, compared to its average volume of 7,609,776. The firm’s 50-day moving average price is $80.30 and its two-hundred day moving average price is $91.18. The stock has a market capitalization of $116.26 billion, a PE ratio of 9.00, a price-to-earnings-growth ratio of 0.62 and a beta of -0.05. PDD has a one year low of $71.94 and a one year high of $139.12.

PDD (NASDAQ:PDD) last posted its quarterly earnings results on Friday, August 14th. The company reported $2.84 earnings per share (EPS) for the quarter. PDD had a return on equity of 22.29% and a net margin of 20.73%. The business had revenue of $16.54 billion for the quarter. On average, analysts forecast that PDD will post 10.02 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. Bank of America reiterated a “neutral” rating on shares of PDD in a report on Wednesday, August 26th. JPMorgan Chase & Co. dropped their price objective on PDD from $110.00 to $95.00 and set a “neutral” rating for the company in a report on Thursday, September 10th. Benchmark cut their target price on shares of PDD from $127.00 to $114.00 and set a “buy” rating on the stock in a research report on Tuesday, August 25th. Deutsche Bank Aktiengesellschaft raised shares of PDD from a “hold” rating to a “buy” rating in a research note on Thursday. Finally, Weiss Ratings raised shares of PDD from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, October 27th. Six research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $110.31.

PDD Company Profile

PDD Holdings Inc is a multinational commerce group that operates online marketplace platforms connecting consumers with merchants, manufacturers and agricultural producers. The company’s platforms use interactive shopping features, including group purchasing and personalized product discovery, to offer a broad range of merchandise at competitive prices.

PDD Holdings’ businesses include Pinduoduo, an e-commerce platform serving consumers in China, and Temu, an online marketplace launched in 2022 that serves consumers across multiple international markets, including North America, Europe and other regions.