PDD Holdings Slides to 79th in Daily Dollar Volume as Institutional Buyers and Sellers Clash Over Long-Term Outlook

Market Snapshot

On November 11, 2025, PDD Holdings Inc. (NASDAQ: PDD) closed with a 0.74% decline, trading at a volume of $1.03 billion, ranking 79th in daily dollar volume. Despite the drop, the stock remains near its 52-week high of $139.41, with a market capitalization of $189.03 billion. The stock opened at $135.78, slightly below its 50-day moving average of $130.56 and its 200-day moving average of $117.27. Analysts remain divided, with a consensus “Hold” rating and an average price target of $137.82, while some institutions have raised their price targets to $160–$165.

Key Drivers

The stock’s mixed performance reflects divergent institutional activity and analyst sentiment. In Q2, several major investors significantly increased their stakes in PDD, signaling confidence in its long-term prospects. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position by 6.8%, acquiring 48,169 additional shares to hold 756,387 shares valued at $79.16 million. Similarly, Panview Capital Ltd. increased its holdings by 44.2%, now owning 231,700 shares worth $24.25 million. Aviva PLC also raised its stake by 1.5%, bringing its total ownership to 618,819 shares valued at $64.77 million. These moves underscore institutional confidence in PDD’s business model, particularly its e-commerce platforms like Pinduoduo and Temu.

A notable outlier was OVERSEA CHINESE BANKING Corp., which dramatically increased its position by 4,562.1% in Q1, acquiring 14,110,042 shares to hold 14,419,327 shares worth $1.71 billion. This massive accumulation suggests a strategic bet on PDD’s growth potential, particularly in China’s competitive e-commerce sector. Conversely, some institutions reduced their exposure, including WIM Investment Management Ltd., which cut its stake by 40.3%, and Connor Clark & Lunn Investment Management Ltd., which sold 37.9% of its holdings. These contrasting actions highlight the stock’s polarizing appeal among institutional investors.

Analyst ratings further reflect a split in sentiment. Barclays, Macquarie, and Benchmark raised their price targets to $160–$165, with “Buy” or “Overweight” ratings, citing PDD’s expanding market share and cost efficiencies. However, Zacks Research downgraded its rating to “Hold” from “Strong-Buy,” while Weiss Ratings maintained a “Hold (C+)” rating. The MarketBeat consensus remains a “Hold,” with an average target of $137.82. This divergence indicates cautious optimism, as analysts balance PDD’s strong fundamentals—such as its low beta of 0.47 and a P/E ratio of 14.73—with concerns about regulatory risks and competitive pressures in China’s tech sector.

PDD’s financial metrics also played a role in shaping market dynamics. The company’s institutional ownership stands at 39.83%, with hedge funds and large investors collectively holding a significant portion of the float. Its market capitalization of $189 billion and a P/E/G ratio of 1.60 suggest a stock valued for its growth potential but priced conservatively relative to earnings. Meanwhile, technical indicators like the 50-day and 200-day moving averages (currently at $130.56 and $117.27, respectively) suggest the stock is in a bullish trend, albeit with recent volatility.

The conflicting institutional actions and analyst ratings highlight a broader debate about PDD’s trajectory. While large-scale purchases by funds like OVERSEA CHINESE BANKING and Aviva signal strong conviction in its e-commerce ecosystem, the sell-offs by firms like WIM and Connor Clark & Lunn indicate lingering skepticism. The stock’s ability to maintain its position near its 52-week high despite the 0.74% drop on November 11 suggests that long-term investors remain bullish, though short-term traders may be reacting to the mixed signals. As PDD navigates regulatory scrutiny and intensifying competition, its institutional backing and analyst optimism will be critical in determining whether it can sustain its current valuation.