The stock of Pinduoduo Inc. (NASDAQ:PDD) is now priced at $88.94 and the shares are -0.26 points down or -0.29% lower compared to its previous closing price of $89.2. The stock had 8.206 million contracts set over the past session. PDD shares’ daily volume is compared to its average trading volume at 9.414 million shares. However, it has a float of 641 million and although its performance was 6.95% over the week, it’s one to watch. Analysts have given the PDD stock a yearly average price target of $87.94 per share. It means the stock’s downside potential is -1.12% with the PDD share price recently placing at $87.8 to $89.75. However, some brokerage firms have priced the stock below the average, including one that has called $¥276.54.
The shorts are running away from the Pinduoduo Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the PDD shares have declined. Short interest in the stock represents just 5.64% of its float, but the volume has dropped by -2139158. The volume of shorted shares dropped to 36.118 million from 38.257 million shares over the last two weeks. The average intraday trading volume has been 5.068 million shares, which means that days to cover moved to roughly 7.126156.
In the last trading session, Pinduoduo Inc. (NASDAQ:PDD) raised by $5.78 over the week and lost -$7.09 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $98.96. The stock recorded its established 52-week high on 07/06/20.
Since 09/27/19, the stock has traded to a low of $30.02 at 196.27%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, Pinduoduo Inc.’s two-week RSI is 49.26. This suggests that the stock is neutral at the moment and that PDD shares’ price movement remains stable. The stochastic readings are equally revealing at 41.69% meaning the PDD share price is currently in neutral territory.
The technical chart shows that the PDD stock will likely settle at between $89.86 and $90.78 per share. However, if the stock dips below $87.91, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $86.88.
Currently, the stock is trading in the red of MACD, with a reading of -0.31. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Barclays though dropped target price of PDD stock from $76 to $75 but maintained Equal Weight recommendation in their August 24 review. UBS analysts downgraded their recommendation of the stock from Buy to Neutral while keeping its target price at $95 in a flash note released to investors on August 24. CLSA seeing the stock struggling downgraded it from Buy to Outperform on August 24.
The average rating for the PDD equity is 2.34 and is currently gathering a bullish momentum. Of 32 analysts tracking Pinduoduo Inc. polled by Reuters, 12 rated PDD as a hold. The remaining 20 analysts were split evenly. However, the split wasn’t equal as a majority (16) rated it as a buy or strong buy. 4 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the PDD stock price is 192.93X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 69.7. Pinduoduo Inc. has its P/E ratio at 24.9, which means that the stock is currently trading at a premium relative to the 15.3 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Pinduoduo Inc. (NASDAQ:PDD) will increase by about 4.65%, which will see them reach $1800 million. The company’s full-year revenues are, however, expected to increase by about 64.5%, up from $4310 million to $7090 million. PDD’s expected adjusted earnings should drop almost -25% to end up at -$0.15 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 15.38% to record -$0.6/share.