Dingdong (Cayman) (NYSE:DDL) Shares Gap Up Following Better-Than-Expected Earnings

Dingdong (Cayman) Limited (NYSE:DDL - Get Free Report) shares gapped up prior to trading 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.

The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.02. Dingdong (Cayman) had a return on equity of 40.86% and a net margin of 0.90%. The firm had revenue of $808.99 million during the quarter, compared to analyst estimates of $798.85 million.

Dingdong (Cayman) announced that its Board of Directors has initiated a stock buyback program on Thursday, March 6th that authorizes the company to buyback $20.00 million in shares. This buyback authorization authorizes the company to buy up to 2.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Dingdong (Cayman)

A number of large investors have recently made changes to their positions in DDL. Vanguard Group Inc. lifted its holdings in shares of Dingdong (Cayman) by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 5,459,769 shares of the company's stock worth $17,908,000 after acquiring an additional 42,772 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of Dingdong (Cayman) by 195.3% during 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 buying an additional 1,336,471 shares during the last quarter. Marshall Wace LLP lifted its holdings 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 period. Arrowstreet Capital Limited Partnership grew its holdings in Dingdong (Cayman) by 397.0% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,776,675 shares of the company's stock valued at $5,827,000 after purchasing an additional 1,419,190 shares during the period. Finally, Millennium Management LLC increased its holdings in Dingdong (Cayman) by 26.8% in the 4th quarter. Millennium Management LLC now owns 813,024 shares of the company's stock worth $2,667,000 after acquiring an additional 171,832 shares in the last quarter. 24.66% of the stock is owned by institutional investors.

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Dingdong (Cayman) Stock Performance

The company's 50-day moving average price is $3.37 and its 200 day moving average price is $3.44. The stock has a market capitalization of $724.04 million, a P/E ratio of 34.06 and a beta of 0.44.

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.