Analyst’s Report Recap: JD.Com Inc(ADR) (NASDAQ:JD)

The shares of JD.Com Inc(ADR) (NASDAQ:JD)currently has mean rating of 1.9 while 14 analyst have recommended the shares as ‘BUY’ ,9 recommended as ‘OUTPERFORM’ and 6 recommended as ‘HOLD’.The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell

The mean price target for the shares of JD.Com Inc(ADR) (NASDAQ:JD)is at $33.28 while the highest price target suggested by the analysts is $45.99 and low price target is $21.00. The mean price target is calculated keeping in view the consensus of 27 brokerage firms.

The company’s mean estimate for sales for the current quarter ending Jun 16 is 65.37B by 11 analysts. The means estimate of sales for the year ending Dec 16 is 255.68B by 26 analysts.

The average estimate of EPS for the current fiscal quarter for JD.Com Inc(ADR) (NASDAQ:JD)stands at $-0.10 while the EPS for the current year is fixed at $-0.10 by 12.00 analysts

The next one year’s EPS estimate is set at 2.08 by 22.00 analysts while a year ago the analysts suggested the company’s EPS at $-0.10. The analysts also projected the company’s long-term growth at -1,022.70% for the upcoming five years

In its latest quarter ended on 31 Mar 2016 , JD.Com Inc(ADR) (NASDAQ:JD)reported earnings of $-0.15. The posted earnings missed the analyst’s consensus by $-0.01 with the surprise factor of -7.10%. In the matter of earnings surprises, the term ‘Cockroach Effect’ is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

JD.Com Inc(ADR) (NASDAQ:JD) traded up +2.21% during trading on Friday, hitting $21.82 . The stock had a trading volume of 20.4 M shares. The firm has a 50 day moving average of $24.16 and a 200-day moving average of $26.99. The stock has a market cap of $29.79B. On Jun 12, 2015 the shares registered one year high at $38.00 and the one year low was seen on Jun 9, 2016.

Baidu, Inc. (BIDU) (“Baidu”), the leading Chinese language internet search provider, Tencent Holdings Limited (SEHK:00700) (“Tencent”), a leading provider of comprehensive internet services in China, and JD.Com Inc(ADR) (NASDAQ:JD) the leading online direct sales company in China, on June 6, 2016   jointly announced that they have entered into definitive agreements pursuant to which Baidu, Tencent and JD.com each agrees to invest US$50 million in Bitauto Holdings Limited (BITA) (“BitAuto”), a leading provider of internet content and marketing services for China’s fast-growing automotive industry.

Baidu, Tencent and JD.com each agrees to purchase 2,471,577 newly issued ordinary shares of Bitauto at US$20.23 per share, corresponding to US$20.23 per American depositary share (“ADS”), each representing one ordinary share of Bitauto. The purchase price represents the average volume weighted closing trading price of Bitauto’s ADSs for the five trading days prior to the signing of the definitive agreements. The transaction is subject to customary closing conditions.

Bitauto also announced that pursuant to definitive agreements entered into by and between Bitauto and PA Grand Opportunity Limited (“PAG”), Bitauto agrees to issue convertible bonds (“CBs”) to PAG and/or its affiliates in an aggregate principal amount of up to US$150 million. Mr. William Li, chief executive officer and chairman of Bitauto will indirectly purchase a portion of the CBs through PAG under a total return swap arrangement with PAG.

Upon the closing of both transactions, Baidu, Tencent, JD.com and holders of the CBs will hold 3.2%, 7.1%, 23.5% and 8.2%, respectively, of Bitauto’s outstanding shares on a fully diluted basis taking into effect the new issuance and the conversion of the CBs at the initial conversion price.

Mr. Li commented, “We are delighted to announce today the strengthening of our strategic partnership with JD.com and Tencent, and the establishment of a new partnership with Baidu, the leader in Chinese language online search. We are also pleased to welcome PAG, a leading regional private investment firm, as an important investor. My personal participation in this transaction is a further testament to management’s strong confidence in Bitauto’s future development.”