ZKH Group (NYSE:ZKH) Trading Up 0.7% - What's Next?

Key Points

• ZKH Group Limited saw a 0.7% increase in shares, closing at $3.01 with a notable trading volume surge of 768% compared to its average.
• The company announced a share buyback plan, typically indicating management's belief that the stock is undervalued.
• Institutional investors now hold 9.52% of ZKH Group’s stock, with recent acquisitions by several hedge funds bolstering their positions.

ZKH Group Limited Unsponsored ADR (NYSE:ZKH - Get Free Report) rose 0.7% during mid-day trading on Thursday . The stock traded as high as $3.05 and last traded at $3.01. Approximately 546,448 shares changed hands during trading, an increase of 768% from the average daily volume of 62,920 shares. The stock had previously closed at $2.99.

ZKH Group Stock Performance

The firm has a market cap of $480.84 million, a P/E ratio of -14.14 and a beta of 0.37. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.71 and a current ratio of 1.96. The company's 50 day moving average is $3.07 and its 200 day moving average is $3.20.

ZKH Group declared that its board has initiated a stock buyback plan on Friday, June 13th that allows the company to buyback $0.00 in shares. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company's board believes its shares are undervalued.

Hedge Funds Weigh In On ZKH Group

A number of hedge funds have recently bought and sold shares of the company. FIL Ltd raised its stake in ZKH Group by 30.0% during the fourth quarter. FIL Ltd now owns 3,845,797 shares of the company's stock worth $13,499,000 after buying an additional 888,000 shares during the last quarter. Invesco Ltd. bought a new position in ZKH Group during the fourth quarter worth $299,000. Finally, Jane Street Group LLC bought a new position in ZKH Group during the first quarter worth $66,000. Institutional investors own 9.52% of the company's stock.

ZKH Group Company Profile

ZKH Group Limited develops and operates a maintenance, repair, and operating (MRO) products trading and service platform that offers spare parts, chemicals, manufacturing parts, general consumables, and office supplies in the People's Republic of China. The company provides MRO procurement and management services; digitalized MRO procurement solutions; and logistics and warehousing services.