Dada Nexus Limited [NASDAQ: DADA] gained 4.62% or 1.41 points to close at $31.91 with a heavy trading volume of 2117432 shares. The company report on March 22, 2021 that JD and Dada Announce Equity Investment.
JD.com, Inc. (NASDAQ: JD, “JD.com” or “JD”), China’s leading technology driven e-commerce company, and Dada Group (NASDAQ: DADA, “Dada”), China’s leading local on-demand delivery and retail platform, jointly announced that JD.com, through its subsidiary, entered into a share purchase agreement with Dada, under which JD.com has agreed to invest a total of US$800 million in newly issued ordinary shares of Dada, at a per share price that equals to the closing trading price of Dada’s ordinary shares on the Nasdaq Global Select Market on March 19, 2021, the last trading day prior to the date of the share purchase agreement. Following the transaction, JD.com will hold, taking into account its existing holding, approximately 51% of Dada’s issued and outstanding shares. The closing of the transaction is subject to satisfaction of customary closing conditions and procedures, including applicable governmental filings, and there can be no assurance that clearance from applicable governmental authorities will be granted. JD.com has agreed not to sell, transfer or dispose of any shares acquired in the transaction for six months after the closing.
The share issuance is exempt from registration under the Securities Act of 1933, as amended, (the “Securities Act”) pursuant to Section 4(a)(2) of the Securities Act regarding transactions not involving a public offering.
It opened the trading session at $30.83, the shares rose to $32.59 and dropped to $30.03, the range by which the price of stock traded the whole day. The daily chart for DADA points out that the company has recorded 18.54% gains over the past six months. However, it is still -118.56% lower than its most recent low trading price.
If we look at the average trading volume of 1.83M shares, DADA reached to a volume of 2117432 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Dada Nexus Limited [DADA]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DADA shares is $43.80 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DADA stock is a recommendation set at 1.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
KeyBanc Capital Markets have made an estimate for Dada Nexus Limited shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on January 07, 2021. While these analysts kept the previous recommendation, Morgan Stanley raised their target price from $34 to $41. The new note on the price target was released on December 08, 2020, representing the official price target for Dada Nexus Limited stock. Previously, the target price had yet another raise from $28.50 to $36, while Goldman kept a Buy rating on DADA stock.
The Average True Range (ATR) for Dada Nexus Limited is set at 2.67, with the Price to Sales ratio for DADA stock in the period of the last 12 months amounting to 8.49. The Price to Book ratio for the last quarter was 2.69, with the Price to Cash per share for the same quarter was set at 4.08.
Trading performance analysis for DADA stock
Dada Nexus Limited [DADA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.32. With this latest performance, DADA shares dropped by -18.49% in over the last four-week period, additionally plugging by 18.54% over the last 6 months.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DADA stock in for the last two-week period is set at 43.21, with the RSI for the last a single of trading hit 47.73, and the three-weeks RSI is set at 42.55 for Dada Nexus Limited [DADA]. The present Moving Average for the last 50 days of trading for this stock 39.22, while it was recorded at 30.46 for the last single week of trading.
Dada Nexus Limited [DADA]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Dada Nexus Limited [DADA] shares currently have an operating margin of -30.62 and a Gross Margin at +20.92. Dada Nexus Limited’s Net Margin is presently recorded at -36.25.
Return on Total Capital for DADA is now -287.65, given the latest momentum, and Return on Invested Capital for the company is -1,138.89. Return on Equity for this stock declined to -1,425.06, with Return on Assets sitting at -29.06. When it comes to the capital structure of this company, Dada Nexus Limited [DADA] has a Total Debt to Total Equity ratio set at 12.54. Additionally, DADA Total Debt to Total Capital is recorded at 11.14, with Total Debt to Total Assets ending up at 9.23. Long-Term Debt to Equity for the company is recorded at 0.99, with the Long-Term Debt to Total Capital now at 0.88.
Receivables Turnover for the company is 7.56 with a Total Asset Turnover recorded at a value of 0.80.Dada Nexus Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.10 and a Current Ratio set at 3.10.
An analysis of insider ownership at Dada Nexus Limited [DADA]
There are presently around $1,514 million, or 26.60% of DADA stock, in the hands of institutional investors. The top three institutional holders of DADA stocks are: GALILEO (PTC) LTD with ownership of 12,765,035, which is approximately -32.889% of the company’s market cap and around 2.79% of the total institutional ownership; JPMORGAN CHASE & CO, holding 8,740,781 shares of the stock with an approximate value of $278.92 million in DADA stocks shares; and ROVIDA ADVISORS INC., currently with $219.17 million in DADA stock with ownership of nearly 26.995% of the company’s market capitalization.
Positions in Dada Nexus Limited stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 81 institutional holders increased their position in Dada Nexus Limited [NASDAQ:DADA] by around 21,514,191 shares. Additionally, 21 investors decreased positions by around 8,064,850 shares, while 4 investors held positions by with 17,868,024 shares. The mentioned changes placed institutional holdings at 47,447,065 shares, according to the latest SEC report filing. DADA stock had 60 new institutional investments in for a total of 6,937,900 shares, while 9 institutional investors sold positions of 1,274,572 shares during the same period.