Pinduoduo stock: buy or sell?

PDD stock price: $40.72 -1.90% At close on November 19th, 2019

Updated on:
November 19th, 2019

3

Pinduoduo closed today at $40.72 and eased a tragic -1.90%.

Should I buy Pinduoduo stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. 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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Pinduoduo stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we gathered 14 ratings published for PDD stock in the last month.

The general sentiment of these ratings is bullish for PDD stock, with 11 positive ratings.
Is PDD a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-6CLSAn/aBuy
2019-8-686 ResearchHoldSell
2019-8-5Jefferies Financial GroupBuyBuy
2019-8-30Barclaysn/aOverweight
2019-8-22KeyCorpn/aOverweight
2019-8-22BenchmarkBuyPositive
2019-8-22Bank of American/aBuy
2019-8-19Barclaysn/aOverweight
2019-7-5MacquarieOutperformOutperform
2019-6-13Benchmarkn/aBuy
2019-5-15Bank of American/aBuy
2019-4-15Jefferies Financial GroupBuyBuy
2019-3-6UBS GroupBuyBuy
2019-2-1HSBCHoldHold

Pinduoduo stock analysis

Daily outlook

Pinduoduo shares eased -1.90% to $40.72 today.

Shares of Pinduoduo ended today at $40.72 and eased a tragic -1.90%. Since last October 9th when SMA100d and SMA200d crossed up, PDD price gained $9.47 per share (30.30%). Since August when PDD stock price broke up the SMA200d line, it gained $18.36 (82.11%). On November 6th, PDD hit new all time highs, pushing higher previous ATH of $43.69 recorded on November 5th. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

PDD stock chart (daily)

Weekly outlook

Pinduoduo plunged a shocking -4.77% this week. Late October PDD boosted an outstanding 18.27% in just one week.

Pinduoduo stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, PDD might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record Pinduoduo marked early November. Since late September when SMA20w and SMA40w crossed up, PDD price gained $9.44 per share (30.18%). Since price and SMA40w lines crossed up by mid August, PDD climbed $18.12 (80.18%).

PDD stock chart (weekly)

Pinduoduo stock price history

Pinduoduo IPO was on July 26th, 2018 at $26.50 per share1. Since then, PDD stock grew a 53.70%, with an average of 53.70% per year. If you had invested $1,000 in Pinduoduo stock in 2018, it would worth $537.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Pinduoduo stock historical price chart

PDD stock reached all-time highs on Nov/6 with a price of $45.25.

Pinduoduo stock price target is $34.80

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We found 9 price predictions for Pinduoduo stock posted in the last 30 days:
PDD stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-6CLSAInitiatesn/a$40.00-
2019-8-5Jefferies Financial GroupInitiatesn/a$26.90-
2019-8-30BarclaysRaises Target$32.00$38.0018.8%
2019-8-22KeyCorpRaises Target$32.00$40.0025%
2019-8-22BenchmarkRaises Target$28.00$39.0039.3%
2019-8-22Bank of AmericaReiterates$29.00$34.0017.2%
2019-6-13BenchmarkInitiatesn/a$28.00-
2019-4-15Jefferies Financial GroupInitiatesn/a$30.00-
2019-3-6UBS GroupInitiatesn/a$37.00-
(in average)$30.30$34.8015.0%
Moving in a range from $40.00 and $26.90, the price target for PDD stock is $34.80. In average, analysts' outlook on PDD price forecast is positive, improving the forecast by a 15.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Pinduoduo presented its financial report, posting a beatiful climb for the Earnings per Share (EPS) ratio. Experts expected $-0.29 per share, but Pinduoduo posted $-0.32.
PDD earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
0000-Q2-n/an/an/a
2017-Q1-n/an/an/a
2017-Q2-n/an/an/a
2017-Q4-n/an/an/a
2018-Q1-n/an/an/a
2018-Q22018-08-30n/a-2.04n/a
2018-Q32018-11-20n/a-0.16n/a
2018-Q42019-03-13-0.29-0.32n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw an amazing growth of 652.26% to $13,120.00 M dollars. However, its income margin (compared to sales) plummed to -77.87%, that is $-10,217.10 million.

PDD annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2016$505 M-$-291.98 M-57.8%-
2017$1,744 M245.46%$-525.12 M-30.1%79.85%
2018$13,120 M652.26%$-10,217.10 M-77.9%1,845.69%

Quarterly financial results

Pinduoduo reported $5,653.92 million in sales for 2018-Q4, a 67.65% up compared to previous quarter. Reported quarter income marked $-2,423.89 million 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 astounding increase and skyrocketed a 379.39%. Looking back to recent quarterly results, Pinduoduo posted 7 negative quarters in a row.
PDD quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$5 M-$-30.14 M-561.1%-
2017-Q2$15 M187.35%$-16.16 M-104.7%-46.38%
2017-Q4$1,179 M7,540.48%$13.59 M1.2%-184.09%
2018-Q1$1,385 M17.40%$-201.02 M-14.5%-1,579.07%
2018-Q2$2,709 M95.66%$-6,493.89 M-239.7%3,130.45%
2018-Q3$3,372 M24.49%$-1,098.32 M-32.6%-83.09%
2018-Q4$5,654 M67.65%$-2,423.89 M-42.9%120.69%

Pinduoduo ownership

When you are planning to buy shares of a company, it's always worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Pinduoduo, 1.24% of all outstanding shares are owned by its staff.

In case of Pinduoduo stock, 13.74% 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.

The following table compares ownership indicators for other stocks related to Pinduoduo:

PDD
Market cap$47.2 B
Total shares1,160.0 M
Float shares349.2 M
  - Institutional holdings (%)13.7%
  - Insider holdings (%)1.2%
Shares in short selling0.0%

Pinduoduo summary

Tuesday, November 19th, 2019
Open$41.80
Close$40.72
Day range$39.73 - $41.84
Previous close$41.51
Session gain-1.90%
Average true range$1.70
50d mov avg$36.66
100d mov avg$30.67
200d mov avg$27.18
Daily patternlt01a
Weekly pattern lt06a

Pinduoduo performance

To measure stock performance is always good to benchmark with competitors or related stocks. For Pinduoduo, the comparison is made against .
Stock3m6m12m
PDDPinduoduo38.08%100.79%80.98%

Pinduoduo competitors

Unfortunately, we could not find any public company that could be defined as Pinduoduo competitor. This doesn't mean Pinduoduo does not have any competitor in the market, it's just we could not detected it.