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

Dingdong (Cayman) Limited (NYSE:DDL)’s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. 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 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.02. The company 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%.

Dingdong (Cayman) declared that its Board of Directors has initiated a share buyback plan on Thursday, March 6th that allows the company to repurchase $20.00 million in outstanding shares. This repurchase authorization allows the company to repurchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Institutional Trading of Dingdong (Cayman)

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. GSA Capital Partners LLP grew its holdings in Dingdong (Cayman) by 81.0% during the 3rd quarter. GSA Capital Partners LLP now owns 72,561 shares of the company’s stock worth $258,000 after acquiring an additional 32,478 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. grew its stake in Dingdong (Cayman) by 3,090.3% in the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 684,345 shares of the company’s stock worth $2,429,000 after purchasing an additional 662,894 shares in the last quarter. Centiva Capital LP bought a new stake in Dingdong (Cayman) in the third quarter valued at about $170,000. Quadrature Capital Ltd grew its position in shares of Dingdong (Cayman) by 87.9% in the 3rd quarter. Quadrature Capital Ltd now owns 47,686 shares of the company’s stock worth $168,000 after acquiring an additional 22,302 shares in the last quarter. Finally, State Street Corp increased its holdings in shares of Dingdong (Cayman) by 32.7% in the 3rd quarter. State Street Corp now owns 253,119 shares of the company’s stock valued at $899,000 after acquiring an additional 62,338 shares during the last quarter. Institutional investors own 24.66% of the company’s stock.

Dingdong (Cayman) Trading Down 5.8 %

The firm has a market capitalization of $792.54 million, a price-to-earnings ratio of 37.28 and a beta of 0.44. The company has a 50-day moving average of $3.38 and a 200-day moving average of $3.41.

About Dingdong (Cayman)

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.