Dingdong (Cayman) (NYSE:DDL) Shares Gap Up Following Strong Earnings

Dingdong (Cayman) Limited (NYSE:DDL)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $3.14, but opened at $3.30. Dingdong (Cayman) shares last traded at $3.42, with a volume of 574,767 shares trading hands.

The company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.04 by $0.02. Dingdong (Cayman) had a net margin of 0.90% and a return on equity of 40.86%.

Dingdong (Cayman) announced that its board has authorized a stock repurchase program on Thursday, March 6th that authorizes the company to repurchase $20.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 2.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Bank of Nova Scotia bought a new position in shares of Dingdong (Cayman) during the fourth quarter valued at $33,000. Susquehanna Fundamental Investments LLC bought a new position in Dingdong (Cayman) in the 4th quarter worth about $35,000. Point72 Asia Singapore Pte. Ltd. increased its stake in Dingdong (Cayman) by 319.2% during the 4th quarter. Point72 Asia Singapore Pte. Ltd. now owns 12,866 shares of the company’s stock valued at $42,000 after purchasing an additional 9,797 shares in the last quarter. Two Sigma Advisers LP purchased a new position in Dingdong (Cayman) in the fourth quarter worth about $47,000. Finally, Diametric Capital LP bought a new position in shares of Dingdong (Cayman) in the fourth quarter worth approximately $63,000. Hedge funds and other institutional investors own 24.66% of the company’s stock.

Dingdong (Cayman) Stock Up 12.9 %

The stock has a market cap of $837.43 million, a PE ratio of 39.39 and a beta of 0.44. The stock’s fifty day moving average price is $3.38 and its 200 day moving average price is $3.41.

Dingdong (Cayman) Company Profile

Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh groceries, including vegetables, meat and eggs, fruits, and seafood; prepared food, and other food products, such as baked goods, dairy, seasonings, beverages, instant food, oil, and snacks. It offers its products through traditional offline, as well as online channels through Dingdong Fresh app, mini-programs, and third-party platforms.