Dingdong (Cayman) (NYSE:DDL) Shares Up 2.5% - Should You Buy?

Key Points

• Shares rose 2.5% to $2.635 on Wednesday, but trading was light at ~258,519 shares, roughly 70% below the stock's average daily volume.
• Analyst consensus is an average "Hold" rating (two analysts), with Zacks recently upgrading the stock from "strong sell" to "hold."
• Dingdong is a China-based rapid-delivery online grocery (Dingdong Fresh) with a market cap of $622.5M, a trailing P/E of 20.27, quarterly EPS of $0.02 on $892.3M revenue, and analysts forecasting about $0.07 EPS for the fiscal year.

Dingdong (Cayman) Limited Sponsored ADR (NYSE:DDL - Get Free Report) shares rose 2.5% on Wednesday . The company traded as high as $2.65 and last traded at $2.6350. Approximately 258,519 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 850,664 shares. The stock had previously closed at $2.57.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Dingdong (Cayman) in a research report on Friday, March 27th. Zacks Research upgraded shares of Dingdong (Cayman) from a "strong sell" rating to a "hold" rating in a research report on Monday, March 9th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has an average rating of "Hold".

Dingdong (Cayman) Stock Performance

The business's fifty day moving average is $2.77 and its 200-day moving average is $2.36. The firm has a market cap of $622.47 million, a P/E ratio of 20.27 and a beta of 0.45.

Dingdong (Cayman) (NYSE:DDL - Get Free Report) last released its quarterly earnings results on Saturday, February 14th. The company reported $0.02 earnings per share (EPS) for the quarter. Dingdong (Cayman) had a net margin of 0.91% and a return on equity of 23.14%. The firm had revenue of $892.26 million during the quarter. Analysts predict that Dingdong will post 0.07 EPS for the current fiscal year.

Institutional Investors Weigh In On Dingdong (Cayman)

Several large investors have recently modified their holdings of DDL. Boundless Plain Holdings Ltd bought a new stake in Dingdong (Cayman) during the fourth quarter valued at $19,893,000. Vanguard Group Inc. raised its position in shares of Dingdong (Cayman) by 1.1% in the 3rd quarter. Vanguard Group Inc. now owns 4,511,443 shares of the company's stock worth $9,339,000 after acquiring an additional 48,638 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its stake in shares of Dingdong (Cayman) by 8.2% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 3,020,244 shares of the company's stock valued at $7,520,000 after purchasing an additional 230,000 shares during the period. JPMorgan Chase & Co. lifted its stake in shares of Dingdong (Cayman) by 66.5% in the 2nd quarter. JPMorgan Chase & Co. now owns 968,405 shares of the company's stock valued at $1,956,000 after purchasing an additional 386,795 shares during the period. Finally, Qube Research & Technologies Ltd boosted its position in shares of Dingdong (Cayman) by 10.0% during the 3rd quarter. Qube Research & Technologies Ltd now owns 540,062 shares of the company's stock valued at $1,118,000 after purchasing an additional 48,947 shares in the last quarter. 24.66% of the stock is currently owned by institutional investors and hedge funds.

About Dingdong (Cayman)

Dingdong (Cayman) Inc, which operates under the Dingdong Fresh brand, is a China-based online grocery and fresh food delivery platform. The company leverages a network of urban micro-fulfillment centers to offer consumers a wide selection of produce, meats, seafood, dairy, packaged goods and everyday household items through its mobile application and website.

Orders placed via the Dingdong Fresh app are fulfilled from strategically located dark stores within target neighborhoods, enabling the company to promise delivery times as fast as 20–30 minutes.

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