Dingdong (Cayman) Ltd ADR (NYSE: DDL)’s stock price has gone decline by -6.04 in comparison to its previous close of 4.39, however, the company has experienced a 2.61% increase in its stock price over the last five trading days. seekingalpha.com reported 2024-11-12 that Dingdong’s Q3 2024 net income was +5% above consensus, as its revenue grew +27% YoY and its operating margin improved by +186 basis points YoY for the recent quarter. DDL’s financial outlook for Q4 2024 and FY 2024 is positive, considering expectations of an increase in new frontline fulfillment station openings and an improvement in operating efficiency. I raise my rating for DDL to a Buy, taking into account its performance, prospects, and valuations.
Is It Worth Investing in Dingdong (Cayman) Ltd ADR (NYSE: DDL) Right Now?
The price-to-earnings ratio for Dingdong (Cayman) Ltd ADR (NYSE: DDL) is 32.82x, which is above its average ratio. Moreover, the 36-month beta value for DDL is 0.37. Analysts have varying opinions on the stock, with 4 analysts rating it as a “buy,” 0 as “overweight,” 1 as “hold,” and 0 as “sell.”
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The public float for DDL is 144.84M and currently, short sellers hold a 0.78% of that float. On December 05, 2024, DDL’s average trading volume was 1.40M shares.
DDL’s Market Performance
DDL stock saw an increase of 2.61% in the past week, with a monthly gain of 4.70% and a quarterly increase of 59.27%. The volatility ratio for the week is 5.00%, and the volatility levels for the last 30 days are 7.67% for Dingdong (Cayman) Ltd ADR (DDL). The simple moving average for the last 20 days is -0.36% for DDL’s stock, with a simple moving average of 80.28% for the last 200 days.
Analysts’ Opinion of DDL
Many brokerage firms have already submitted their reports for DDL stocks, with Daiwa Securities repeating the rating for DDL by listing it as a “Neutral.” The predicted price for DDL in the upcoming period, according to Daiwa Securities is $2.80 based on the research report published on August 01, 2023 of the previous year 2023.
JP Morgan, on the other hand, stated in their research note that they expect to see DDL reach a price target of $7, previously predicting the price at $2.50. The rating they have provided for DDL stocks is “Overweight” according to the report published on May 16th, 2022.
Morgan Stanley gave a rating of “Underweight” to DDL, setting the target price at $4.20 in the report published on March 21st of the previous year.
DDL Trading at 9.20% from the 50-Day Moving Average
After a stumble in the market that brought DDL to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -10.33% of loss for the given period.
Volatility was left at 7.67%, however, over the last 30 days, the volatility rate increased by 5.00%, as shares sank -6.29% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +50.00% upper at present.
During the last 5 trading sessions, DDL rose by +3.73%, which changed the moving average for the period of 200-days by +265.79% in comparison to the 20-day moving average, which settled at $4.14. In addition, Dingdong (Cayman) Ltd ADR saw 175.00% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for DDL
Current profitability levels for the company are sitting at:
- 0.01 for the present operating margin
- 0.3 for the gross margin
The net margin for Dingdong (Cayman) Ltd ADR stands at 0.01. The total capital return value is set at 0.08. Equity return is now at value 38.60, with 2.67 for asset returns.
Based on Dingdong (Cayman) Ltd ADR (DDL), the company’s capital structure generated 0.73 points at debt to capital in total, while cash flow to debt ratio is standing at 0.52. The debt to equity ratio resting at 2.64. The interest coverage ratio of the stock is 2.13.
Currently, EBITDA for the company is 182.1 million with net debt to EBITDA at 7.14. When we switch over and look at the enterprise to sales, we see a ratio of 0.39. The receivables turnover for the company is 162.8for trailing twelve months and the total asset turnover is 3.22. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.00.
Conclusion
To wrap up, the performance of Dingdong (Cayman) Ltd ADR (DDL) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
