Gen Z-focused ready meal maker DayDayCook jumps on news of insider deal

Shares of Hong Kong-based ready-made meal provider DayDayCook (DDC) jumped more than 18% yesterday, February 25, to a three-month high, before giving back some of the gains in premarket trading today. Yesterday's gains came after the company announced that its founder and CEO Norma Chu would increase her stake in DDC by purchasing shares worth about $2.27 million.

Yesterday, DDC stock surged more than 18% on the New York Stock Exchange to $0.26 per share, its highest closing price since mid-November 2024, before dropping almost 6% to $0.24 per share in premarket trading today.

Earlier in the day yesterday, DDC announced that its founder and CEO Norma Chu would increase her stake in the company through two transactions: She plans to acquire up to 10% of shares in the open market and then, alongside an unnamed new investor, purchase 10 million shares in a private placement. The higher the insider ownership, the stronger the incentive for insiders to build the company for the long term, argues Simply Wall St.

The transactions with Chu are expected to bring DDC about $2.27 million, meaning the shares will cost her around $0.23 apiece — roughly the same as the market price on February 24, the day before the deal was announced.

“2024 was a challenging year for DDC, but I saw resilience and perseverance amongst our team. I am confident in DDC’s potential and our goal of achieving long-term growth for the company,” Norma Chu was quoted as saying in the press release.

Founded in Hong Kong in 2012, DDC offers ready-to-cook and ready-to-eat Asian dishes. The company promotes itself on social media and e-commerce platforms to target young people, particularly Gen Z.

DDC’s public history has been brief but dramatic. Its IPO in November 2023 failed to excite investors and was priced at $8.50 per share, 10% below the lower end of the indicated range in the prospectus. Since then, the stock has lost nearly 97% of its value.

In 2024, the NYSE notified DDC of no fewer than three rule violations. Initially, it flagged noncompliance with listing standards due to a shareholders' equity deficit. A month later, the exchange issued a second warning, as the company had failed to submit its 2023 report on time. The NYSE also notified DDC of noncompliance with its minimum listing requirement of $1 per share.

The company has since resolved two of these issues. In December 2024, it increased shareholder equity by converting part of its debt. A month later, it finally released its 2023 report. To raise the share price, DDC has voiced its intention to carry out a reverse stock split, though it has yet to do so.

DDC has not released its 2024 report. Preliminary numbers have been published, however, showing that revenue grew at least 17.6% year over year to $34 million or at most 38.0% to $40 million.

According to MarketWatch, the single analyst who covers DDC has a “buy” recommendation, with a target price of $7.15 per share, 27.5 times the current market price.