The stock of Dada Nexus Limited (DADA) closed the recent trading session at $5.89, gaining 14.37% from the previous trading session. On the last check, DADA stock soared in the after-market and gained 2.72% to $6.05. The company declared a stock buyback program. Also, DADA released the unverified fiscal performance for Q4 and FY21. The analyst at JP Morgan also downgraded the stock rating. DADA also filed form 6-K with the SEC.
Dada Nexus Ltd is a holding organization chiefly associated with the activity of on-request retail and conveyance stages. The company’s primary stages are JD-Daojia (JDDJ) and Dada Now. JDDJ is an on-request retail stage that works in China. The company has a market capitalization of $1.38 billion. Also, DADA has its headquarter in Shanghai, China.
On 11 March 2022, the firm declared the stock buyback program. The BoD has also approved the buyback program. Dada is approved to buy back its own conventional stocks with a total worth of up to $70 million during the years’ time frame. The company will buy back its stock in the shape of American depositary shares. The organization hopes to subsidize the repurchase out of its current money balance. The share buyback might be affected on the open market at existing market costs.
On 8 March 2022, the firm also published the financial performance for the fourth quarter and FY2021. The key highlights of the performance are
- The company had sales of ¥03 million in Q4 of FY21 versus ¥2.01 million in Q4 of FY20. Also, the sales in FY21 increased by 19.6% to ¥6.8 million against ¥5.7 million in FY2020.
- DADA’s total loss in Q4 of FY21 expanded by 8.1% to ¥585 million compared to ¥0.535 million in the corresponding period of last year. Also, the total loss in FY21 grew by 45.1% to ¥2.4 million against ¥1.7 million in the previous year.
- Besides, the firm reported a loss of ¥61 and ¥2.60 per stock in Q4 and FY21, respectively.
What does the analyst say?
The analyst at JP Morgan downgraded the stock rating from overweight to neutral, setting a target price to $7.50, on 14 March 2022. Moreover, the analyst at Credit Suisse upgraded the stock rating from neutral to outperform, lowering the target price from $25 to $17.50, on 9 March 2022.