Short Interest in Pinduoduo Inc (NASDAQ:PDD) Increases By 10.8%

Pinduoduo Inc (NASDAQ:PDD) was the recipient of a large increase in short interest during the month of July. As of July 31st, there was short interest totalling 40,951,800 shares, an increase of 10.8% from the June 30th total of 36,945,000 shares. Approximately 6.5% of the shares of the company are short sold. Based on an average daily volume of 6,130,000 shares, the days-to-cover ratio is presently 6.7 days.

PDD traded down $0.22 during trading hours on Wednesday, hitting $23.56. The stock had a trading volume of 4,818,000 shares, compared to its average volume of 7,212,841. The firm’s fifty day simple moving average is $21.09. Pinduoduo has a 1 year low of $16.53 and a 1 year high of $31.99. The stock has a market capitalization of $26.34 billion and a PE ratio of -11.78. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.90 and a current ratio of 1.90.

Pinduoduo (NASDAQ:PDD) last announced its quarterly earnings data on Monday, May 20th. The company reported ($0.24) earnings per share for the quarter, topping the consensus estimate of ($0.28) by $0.04. Pinduoduo had a negative return on equity of 76.66% and a negative net margin of 73.90%. The company had revenue of $4.55 billion during the quarter, compared to analyst estimates of $4.11 billion. The business’s revenue for the quarter was up 228.3% on a year-over-year basis. Analysts predict that Pinduoduo will post -0.71 earnings per share for the current fiscal year.

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Oppenheimer Asset Management Inc. purchased a new position in Pinduoduo during the 1st quarter valued at about $35,000. WT Asset Management Ltd grew its holdings in Pinduoduo by 44.8% during the 1st quarter. WT Asset Management Ltd now owns 787,448 shares of the company’s stock valued at $64,000 after buying an additional 243,622 shares in the last quarter. Quadrant Capital Group LLC purchased a new position in Pinduoduo during the 1st quarter valued at about $66,000. Atlas Capital Advisors LLC purchased a new position in Pinduoduo during the 1st quarter valued at about $87,000. Finally, Daiwa Securities Group Inc. purchased a new position in Pinduoduo during the 1st quarter valued at about $102,000. 10.95% of the stock is owned by institutional investors.

Several equities research analysts have recently issued reports on PDD shares. New Street Research started coverage on Pinduoduo in a research report on Thursday, June 20th. They set a “buy” rating for the company. Benchmark started coverage on Pinduoduo in a research report on Thursday, June 13th. They set a “buy” rating and a $28.00 target price for the company. Zacks Investment Research lowered Pinduoduo from a “buy” rating to a “hold” rating in a research report on Thursday, August 1st. 86 Research reaffirmed a “sell” rating on shares of Pinduoduo in a research report on Tuesday, August 6th. Finally, Macquarie started coverage on Pinduoduo in a research report on Friday, July 5th. They set an “outperform” rating and a $30.00 target price for the company. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating and nine have given a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average target price of $28.00.

About Pinduoduo

Pinduoduo Inc operates an e-commerce platform in the People's Republic of China. It also operates Pinduoduo, a mobile platform that offers a range of priced merchandise. The company was formerly known as Walnut Street Group Holding Limited and changed its name to Pinduoduo Inc in July 2018. Pinduoduo Inc was founded in 2015 and is based in Shanghai, the People's Republic of China.

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