DoorDash (NASDAQ:DASH) Stock Keeps "Overweight" Rating at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald maintained its “Overweight” rating on DoorDash and set a $240 price target, implying approximately 34% upside. The broader analyst consensus is “Moderate Buy,” with an average target of $254.24.
• DoorDash reported stronger-than-expected quarterly results, with EPS of $1.06 versus $0.81 expected and revenue of $4.62 billion, up 34% year over year.
• The company agreed to acquire Instacart for approximately $17 billion, expanding its grocery and local-commerce presence, though the deal faces integration, dilution, regulatory and legal risks.

DoorDash (NASDAQ:DASH - Get Free Report)'s stock had its "overweight" rating restated by equities research analysts at Cantor Fitzgerald in a note issued to investors on Friday, Benzinga reports. They presently have a $240.00 target price on the stock. Cantor Fitzgerald's price objective indicates a potential upside of 34.08% from the stock's current price.

Several other brokerages also recently commented on DASH. Guggenheim reissued a "buy" rating and set a $255.00 target price on shares of DoorDash in a research note on Wednesday, October 14th. Mizuho set a $255.00 price target on shares of DoorDash in a research note on Friday. Bank of America reaffirmed a "buy" rating on shares of DoorDash in a report on Friday. The Goldman Sachs Group lowered their price objective on shares of DoorDash from $280.00 to $275.00 in a research report on Thursday, August 6th. Finally, Needham & Company LLC lowered their price objective on shares of DoorDash from $265.00 to $235.00 and set a "buy" rating for the company in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $254.24.

DoorDash Price Performance

NASDAQ:DASH opened at $179.00 on Friday. DoorDash has a 52 week low of $143.30 and a 52 week high of $265.45. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.37 and a current ratio of 1.37. The firm's 50-day simple moving average is $198.71 and its 200 day simple moving average is $183.29. The firm has a market cap of $77.56 billion, a price-to-earnings ratio of 93.72 and a beta of 1.90.

DoorDash (NASDAQ:DASH - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The company reported $1.06 earnings per share for the quarter, beating the consensus estimate of $0.81 by $0.25. DoorDash had a return on equity of 8.48% and a net margin of 5.29%. The firm had revenue of $4.62 billion during the quarter, compared to analysts' expectations of $4.56 billion. During the same period in the previous year, the firm earned $0.55 EPS. The company's quarterly revenue was up 34.0% compared to the same quarter last year. As a group, sell-side analysts predict that DoorDash will post 2.51 earnings per share for the current year.

Insider Transactions at DoorDash

In other news, COO Prabir Adarkar sold 55,289 shares of DoorDash stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $231.76, for a total transaction of $12,813,778.64. Following the sale, the chief operating officer directly owned 930,211 shares of the company's stock, valued at approximately $215,585,701.36. This trade represents a 5.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stanley Tang sold 72,367 shares of the business's stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $225.16, for a total value of $16,294,153.72. Following the sale, the director owned 10,361 shares in the company, valued at approximately $2,332,882.76. This trade represents a 87.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 393,998 shares of company stock valued at $85,861,330. 44.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DoorDash

Several hedge funds have recently added to or reduced their stakes in DASH. JCP Investment Management LLC bought a new stake in shares of DoorDash in the 1st quarter valued at about $991,000. Plato Investment Management Ltd acquired a new stake in shares of DoorDash in the second quarter valued at about $1,024,000. Godsey & Gibb Inc. raised its position in shares of DoorDash by 1,510,137.1% during the third quarter. Godsey & Gibb Inc. now owns 528,583 shares of the company's stock worth $97,021,000 after acquiring an additional 528,548 shares during the last quarter. Quantinno Capital Management LP raised its position in shares of DoorDash by 4.9% during the first quarter. Quantinno Capital Management LP now owns 655,095 shares of the company's stock worth $98,363,000 after acquiring an additional 30,881 shares during the last quarter. Finally, Monetta Financial Services Inc. acquired a new position in shares of DoorDash in the second quarter worth approximately $1,015,000. 90.64% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about DoorDash

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: Q3 results exceeded expectations. DoorDash reported adjusted earnings of $1.06 per share versus the $0.81 consensus estimate, while revenue rose 34% year over year to $4.62 billion, topping forecasts of $4.56 billion. The company also reported quarterly records for marketplace gross order value, revenue and net income. DoorDash Q3 earnings and revenues top estimates
• Positive Sentiment: Instacart acquisition expands DoorDash beyond restaurants. DoorDash agreed to acquire Instacart in a cash-and-stock transaction valued at approximately $17 billion. The deal would combine DoorDash’s restaurant marketplace with Instacart’s grocery platform, strengthening its position in grocery and local commerce while adding potential cross-selling and scale benefits. The transaction is expected to close in late 2027 or the first half of 2028, subject to approvals. DoorDash to acquire Instacart for $17 billion
• Positive Sentiment: Core marketplace momentum improved. Management said U.S. restaurant marketplace sequential growth accelerated from the second quarter to the third quarter, alongside continued membership growth, new products and investments in merchant services, artificial intelligence and autonomous delivery. Analysts cited in the reports have a consensus price target of $254.95, implying meaningful upside from the current trading level. DoorDash three key takeaways
• Neutral Sentiment: Investors must weigh execution and regulatory risks. The Instacart combination could create a dominant delivery company, but critics warn it may lead to higher customer costs, tougher conditions for workers and antitrust scrutiny. The deal also brings integration complexity and potential stock dilution.
• Negative Sentiment: Legal scrutiny has emerged around the transaction. A law firm announced an investigation into whether Instacart’s board fulfilled its fiduciary duties in approving the sale. Such investigations are common in mergers but could add uncertainty or delay. Shareholder investigation of Instacart transaction

About DoorDash

DoorDash, Inc NASDAQ: DASH operates a local commerce platform that connects consumers with restaurants, grocery stores, convenience retailers and other merchants. Through its website and mobile applications, customers can browse products, place orders for delivery or pickup, and access related services.

The company provides merchants with ordering, delivery, logistics, marketing and payment tools. Its offerings include the DoorDash Marketplace, subscription programs such as DashPass, and delivery infrastructure that merchants can use through services including DoorDash Drive.

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