Pinduoduo stock: buy or sell?
March 27th, 2020
Should I buy Pinduoduo stock?Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.
None of our preferred buy setups matches with Pinduoduo stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Pinduoduo stock a buy?
Financial institutions and banks post stock ratings everyday.Unfortunately, we couldn't detect any rating for PDD stock for the last month.
Pinduoduo stock analysis
Shares of Pinduoduo plunged a dreadful -4.57% and closed at $35.32.
Shares of Pinduoduo ended yesterday at $35.32 and plunged a dreadful -4.57%. On March 19th PDD price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On November, PDD hit new all time highs, pushing higher previous ATH of $43.69 recorded on November. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Shares of Pinduoduo closed this week at $35.32 and boosted a wonderful 5.21%. Early March PDD plunged a bloodcurdling -8.89% in just one week. By mid February PDD rocketed a super good 7.65% in just one week.
Far behind is the all-time high Pinduoduo recorded early November and since then the price is -21.94% below that top. Since SMA20d and SMA40w crossed up late September 2019, PDD price climbed $4.04 per share (12.92%). Since mid August 2019 when PDD stock price broke up the SMA40w line, it gained $12.72 (56.28%).
Pinduoduo stock price history
Pinduoduo IPO was on July 26th, 2018 at $26.50 per share1. Since then, PDD stock grew a 33.30%, with an average of 33.30% per year. If you had invested $1,000 in Pinduoduo stock in 2018, it would worth $333.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Pinduoduo stock historical price chart
PDD stock reached all-time highs on November with a price of $45.25.
Pinduoduo stock price targetPredicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' PDD stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we have not detected any price forecast for Pinduoduo stock by any trusted analyst.
Financials and fundamental analysis
Earnings date and Earnings per SharePinduoduo reported good results for 2018-Q4 . Pinduoduo soared Earnings per Share (EPS) by 10.30%, beating experts consensus of $-0.29. Pinduoduo posted $-0.32.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Pinduoduo annual turnover boosted an extraordinary 652.26% to $13,120.00 M USD from $1,744.08 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) plummed a -47.77% to -77.87%.
|2016||$505 M||-||$-291.98 M-57.8%||-|
|2017||$1,744 M||245.46%||$-525.12 M-30.1%||79.85%|
|2018||$13,120 M||652.26%||$-10,217.10 M-77.9%||1,845.69%|
Quarterly financial resultsPinduoduo posted $5,653.92 M in revenues for 2018-Q4, a 67.65% improvement compared to previous quarter. Reported quarter earnings marked $-2,423.89 M with a profit margin of -42.87%. Profit margin collapsed a -10.30% compared to previous quarter when profit margin was -32.57%. When comparing turnover to same quarter last year, Pinduoduo sales marked an exceptional growth and rocketed a 379.39%. Looking back to recent quarterly results, Pinduoduo posted 7 positive quarters in a row.
|2017-Q1||$5 M||-||$-30.14 M-561.1%||-|
|2017-Q2||$15 M||187.35%||$-16.16 M-104.7%||-46.38%|
|2017-Q4||$1,179 M||7,540.48%||$13.59 M1.2%||-184.09%|
|2018-Q1||$1,385 M||17.40%||$-201.02 M-14.5%||-1,579.07%|
|2018-Q2||$2,709 M||95.66%||$-6,493.89 M-239.7%||3,130.45%|
|2018-Q3||$3,372 M||24.49%||$-1,098.32 M-32.6%||-83.09%|
|2018-Q4||$5,654 M||67.65%||$-2,423.89 M-42.9%||120.69%|
Pinduoduo ownershipWhen you are planning to buy a stock, it's always worth to check its ownership structure.
Pinduoduo shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 1.34% of all shares.
In case of Pinduoduo stock, 29.38% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for PDD stock account 0.00%, no big difference from last month.
For a better context understanding, the next table shows ownership data compared to other related companies:
|Market cap||$41.0 B|
|Total shares||1,160.0 M|
|Float shares||354.4 M|
|- Institutional holdings (%)||29.4%|
|- Insider holdings (%)||1.3%|
|Shares in short selling||0.0%|
|Friday, March 27th, 2020|
|Day range||$34.72 - $36.20|
|Average true range||$2.38|
|50d mov avg||$35.87|
|100d mov avg||$37.31|
|200d mov avg||$32.70|
Pinduoduo performanceTo better understand Pinduoduo performance you must becnhmark its gains with other related stocks in same sector or industry. We selected as the bechmarking frame for Pinduoduo stock.