Wall Street Zen Downgrades Dingdong (Cayman) (NYSE:DDL) to Buy

Wall Street Zen cut shares of Dingdong (Cayman) (NYSE:DDL - Free Report) from a strong-buy rating to a buy rating in a report released on Saturday morning.

Dingdong (Cayman) Trading Down 3.4%

Dingdong (Cayman) stock traded down $0.07 during mid-day trading on Friday, hitting $1.99. The company had a trading volume of 916,600 shares, compared to its average volume of 852,082. The company has a market capitalization of $470.09 million, a price-to-earnings ratio of 22.11 and a beta of 0.56. The company's fifty day moving average is $2.43 and its 200-day moving average is $3.21. Dingdong has a 12-month low of $1.62 and a 12-month high of $4.79.

Dingdong (Cayman) (NYSE:DDL - Get Free Report) last announced its earnings results on Thursday, March 6th. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.02. The business had revenue of $808.99 million during the quarter, compared to the consensus estimate of $798.85 million. Dingdong (Cayman) had a return on equity of 40.86% and a net margin of 0.90%. As a group, sell-side analysts expect that Dingdong will post 0.07 EPS for the current fiscal year.

Dingdong (Cayman) declared that its Board of Directors has authorized a stock buyback program on Thursday, March 6th that allows the company to buyback $20.00 million in shares. This buyback authorization allows the company to repurchase up to 2.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Point72 Asia Singapore Pte. Ltd. lifted its holdings in Dingdong (Cayman) by 319.2% in 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. Bank of Nova Scotia purchased a new position in Dingdong (Cayman) in the 4th quarter valued at $33,000. Susquehanna Fundamental Investments LLC purchased a new position in Dingdong (Cayman) in the 4th quarter valued at $35,000. Two Sigma Advisers LP purchased a new position in Dingdong (Cayman) in the 4th quarter valued at $47,000. Finally, Diametric Capital LP purchased a new position in Dingdong (Cayman) in the 4th quarter valued at $63,000. 24.66% of the stock is owned by institutional investors and hedge funds.

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.