Pinduoduo stock: buy or sell?

PDD stock price: $29.49 -3.60% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

4

After climbing for 4 sessions, Friday Pinduoduo collapsed a shocking -3.60%, closing at $29.49. On Aug/21 PDD boosted an astounding 13.78%.

Should I buy Pinduoduo stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Pinduoduo stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean PDD will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Pinduoduo stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 13 ratings published for PDD stock in the last month.

The general sentiment of these ratings is bullish for PDD stock, with 10 positive ratings.
Is PDD a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-686 ResearchHoldSell
2019-8-5Jefferies Financial GroupBuyBuy
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
2019-1-16Morgan Stanleyn/aOverweight

Pinduoduo stock analysis

Daily outlook

After climbing for 4 days, Friday Pinduoduo collapsed a shocking -3.60%, closing at $29.49.

After climbing for 4 days, Friday Pinduoduo collapsed a shocking -3.60%, closing at $29.49. Since last August 13th when PDD stock price broke up the SMA200d line, it gained $7.13 (31.89%). From a daily perspective, PDD is in a short term uptrend after plotting its last bottom ($21.22, on Aug 5th) higher than the previous bottom, and its last top ($30.98, yesterday) also over the previous top. Now trading in between its last bottom and last top PDD might consolidate in a plain range, waiting to break out over $30.98 or down under $21.22.

PDD stock chart (daily)

Weekly outlook

Pinduoduo shares boosted 17.91% this week, ending at $29.49. Early July PDD collapsed a spooky -6.01% in just one week.

Price finally broke over the resistance at $21.78 and continued climbing. Since last week when PDD stock price broke up the SMA40w line, it gained $6.89 (30.49%). Far behind is the all-time high Pinduoduo recorded early March but price is just -7.81% below that top.

PDD stock chart (weekly)

Pinduoduo stock price history

Pinduoduo IPO was on July 26th, 2018 at $26.50 per share1. Since then, PDD stock surged a 11.30%, with a yearly average of 11.30%. If you had invested $1,000 in Pinduoduo stock in 2018, it would worth $113.00 today.

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

Pinduoduo stock historical price chart

PDD stock reached all-time highs on March with a price of $31.99.

Pinduoduo stock price target is $33.60

Predicting 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. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 7 price targets for Pinduoduo stock published in the last month:
PDD stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-5Jefferies Financial GroupInitiatesn/a$26.90-
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)$29.70$33.6013.0%
The price forecast for Pinduoduo stock is $33.60, moving in a range between $40.00 and $26.90. In average, analysts' outlook on PDD price target is positive, upgrading the prediction by a 13.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Pinduoduo presented good results for 2018-Q4 on March. Pinduoduo soared Earnings per Share (EPS) by 10.30%, beating experts consensus of $-0.29. 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 turnover report draw a dazzling growth of 652.26% to $13,120.00 million USD. In contrary, its earnings margin (compared to revenues) 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 M in sales for 2018-Q4, a 67.65% improvement compared to previous quarter. Reported quarter income marked $-2,423.89 M with a profit margin of -42.87%. Profit margin plunged 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 outstanding increase and climbed 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 invest in 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.

For a better understanding, the following table shows ownership data compared to other related companies:

PDD
Market cap$34.2 B
Total shares1,160.0 M
Float shares329.3 M
  - Institutional holdings (%)13.7%
  - Insider holdings (%)1.2%
Shares in short selling0.0%

Pinduoduo summary

Friday, August 23rd, 2019
Open$29.64
Close$29.49
Day range$29.38 - $30.65
Previous close$30.59
Session gain-3.60%
Average true range$1.31
50d mov avg$21.94
100d mov avg$21.84
200d mov avg$23.31
Daily patternlt06a
Weekly pattern lb01c

Pinduoduo performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We picked as the bechmarking frame for Pinduoduo stock.
Stock3m6m12m
PDDPinduoduo45.41%0.37%71.25%

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.