Pinduoduo Inc (NASDAQ:PDD) Sees Large Growth in Short Interest

Pinduoduo Inc (NASDAQ:PDD) was the recipient of a large growth in short interest during the month of October. As of October 31st, there was short interest totalling 26,700,000 shares, a growth of 6.8% from the September 30th total of 24,990,000 shares. Based on an average trading volume of 7,730,000 shares, the days-to-cover ratio is presently 3.5 days. Currently, 4.2% of the company’s stock are sold short.

Institutional investors and hedge funds have recently modified their holdings of the business. Pentwater Capital Management LP boosted its stake in Pinduoduo by 50.0% in the second quarter. Pentwater Capital Management LP now owns 90,000 shares of the company’s stock worth $1,857,000 after buying an additional 30,000 shares in the last quarter. Xact Kapitalforvaltning AB purchased a new stake in Pinduoduo in the second quarter worth approximately $1,238,000. AIA Group Ltd purchased a new stake in Pinduoduo in the second quarter worth approximately $14,852,000. Wells Fargo & Company MN boosted its stake in Pinduoduo by 76.3% in the second quarter. Wells Fargo & Company MN now owns 626,290 shares of the company’s stock worth $12,920,000 after buying an additional 271,012 shares in the last quarter. Finally, Monashee Investment Management LLC purchased a new stake in Pinduoduo in the second quarter worth approximately $722,000. 12.67% of the stock is owned by institutional investors and hedge funds.

Pinduoduo stock traded up $1.44 during midday trading on Friday, reaching $42.76. The stock had a trading volume of 6,420,900 shares, compared to its average volume of 6,393,733. The company has a quick ratio of 1.77, a current ratio of 1.77 and a debt-to-equity ratio of 0.01. The firm’s 50-day moving average price is $36.78 and its 200 day moving average price is $27.28. The firm has a market capitalization of $46.44 billion, a PE ratio of -21.38 and a beta of 1.49. Pinduoduo has a 12 month low of $18.46 and a 12 month high of $45.25.

Pinduoduo (NASDAQ:PDD) last posted its quarterly earnings data on Wednesday, August 21st. The company reported ($0.12) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.25) by $0.13. The company had revenue of $7.29 billion for the quarter, compared to analysts’ expectations of $6.15 billion. Pinduoduo had a negative net margin of 30.74% and a negative return on equity of 28.55%. Pinduoduo’s revenue for the quarter was up 169.1% on a year-over-year basis. Equities research analysts expect that Pinduoduo will post -0.64 EPS for the current year.

A number of research firms have issued reports on PDD. KeyCorp lifted their price objective on shares of Pinduoduo from $40.00 to $52.00 and gave the stock an “overweight” rating in a report on Wednesday, November 6th. Zacks Investment Research raised shares of Pinduoduo from a “hold” rating to a “buy” rating and set a $49.00 price target on the stock in a report on Friday, November 8th. Nomura began coverage on shares of Pinduoduo in a report on Wednesday, October 9th. They issued a “neutral” rating and a $34.00 price target on the stock. ValuEngine downgraded shares of Pinduoduo from a “hold” rating to a “sell” rating in a report on Wednesday, October 2nd. Finally, 86 Research reissued a “sell” rating on shares of Pinduoduo in a report on Tuesday, August 6th. Three equities research analysts have rated the stock with a sell rating, three have given a hold rating and eleven have given a buy rating to the company. Pinduoduo has a consensus rating of “Hold” and a consensus price target of $34.22.

About Pinduoduo

Pinduoduo Inc operates an e-commerce platform in the People's Republic of China. It also operates Pinduoduo, a mobile platform that offers a range of priced merchandise. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc in July 2018. Pinduoduo Inc was founded in 2015 and is based in Shanghai, the People's Republic of China.

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