Dingdong (Cayman) (NYSE:DDL) Trading Down 5.4% – Here’s Why

Dingdong (Cayman) Limited (NYSE:DDL) was down 5.4% during trading on Thursday . The stock traded as low as $2.89 and last traded at $2.90. Approximately 423,693 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 762,680 shares. The stock had previously closed at $3.06.

Dingdong (Cayman) Stock Performance

The firm has a fifty day simple moving average of $3.33 and a 200-day simple moving average of $3.49. The firm has a market cap of $669.71 million, a price-to-earnings ratio of 31.50 and a beta of 0.44.

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

Dingdong (Cayman) announced that its board has authorized a share buyback program on Thursday, March 6th that permits the company to buyback $20.00 million in shares. This buyback authorization permits the company to reacquire up to 2.7% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of DDL. Arrowstreet Capital Limited Partnership increased its position in shares of Dingdong (Cayman) by 397.0% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,776,675 shares of the company’s stock worth $5,827,000 after purchasing an additional 1,419,190 shares during the period. Connor Clark & Lunn Investment Management Ltd. grew its position in Dingdong (Cayman) by 195.3% in the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,020,816 shares of the company’s stock valued at $6,628,000 after acquiring an additional 1,336,471 shares during the last quarter. Marshall Wace LLP grew its position in Dingdong (Cayman) by 164.8% in the fourth quarter. Marshall Wace LLP now owns 1,924,912 shares of the company’s stock valued at $6,314,000 after acquiring an additional 1,198,006 shares during the last quarter. Polymer Capital Management HK LTD bought a new stake in shares of Dingdong (Cayman) during the fourth quarter worth about $2,590,000. Finally, Walleye Capital LLC bought a new stake in shares of Dingdong (Cayman) during the fourth quarter worth about $2,227,000. Institutional investors own 24.66% of the company’s stock.

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.