Pinduoduo stock: buy or sell?
November 19th, 2019
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.
|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.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.
|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
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.
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%).
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 $34.80How 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:
|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 ShareOn 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared 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.
|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 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.
|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 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:
|Market cap||$47.2 B|
|Total shares||1,160.0 M|
|Float shares||349.2 M|
|- Institutional holdings (%)||13.7%|
|- Insider holdings (%)||1.2%|
|Shares in short selling||0.0%|
|Tuesday, November 19th, 2019|
|Day range||$39.73 - $41.84|
|Average true range||$1.70|
|50d mov avg||$36.66|
|100d mov avg||$30.67|
|200d mov avg||$27.18|
Pinduoduo performanceTo measure stock performance is always good to benchmark with competitors or related stocks. For Pinduoduo, the comparison is made against .