Pinduoduo stock: buy or sell?
August 23rd, 2019
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.
|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?
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-8-5||Jefferies Financial Group||Buy||Buy|
|2019-8-22||Bank of America||n/a||Buy|
|2019-5-15||Bank of America||n/a||Buy|
|2019-4-15||Jefferies Financial Group||Buy||Buy|
Pinduoduo stock analysis
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.
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.
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 $33.60Predicting 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-8-5||Jefferies Financial Group||Initiates||n/a||$26.90||-|
|2019-8-22||Bank of America||Reiterates||$29.00||$34.00||17.2%|
|2019-4-15||Jefferies Financial Group||Initiates||n/a||$30.00||-|
Financials and fundamental analysis
Earnings date and Earnings per SharePinduoduo 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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.
|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 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.
|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 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:
|Market cap||$34.2 B|
|Total shares||1,160.0 M|
|Float shares||329.3 M|
|- Institutional holdings (%)||13.7%|
|- Insider holdings (%)||1.2%|
|Shares in short selling||0.0%|
|Friday, August 23rd, 2019|
|Day range||$29.38 - $30.65|
|Average true range||$1.31|
|50d mov avg||$21.94|
|100d mov avg||$21.84|
|200d mov avg||$23.31|
Pinduoduo performancePerformance 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.