DoorDash (NASDAQ:DASH) Stock Price Target Cut by Rosenblatt Securities

Key Points

• Rosenblatt Securities cut DoorDash’s price target to $225 from $270 but maintained a “buy” rating, implying about 25% upside from the current share price.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average price target of $248.66.
• DoorDash beat quarterly earnings expectations, reporting EPS of $1.06 versus an $0.81 estimate and revenue of $4.62 billion, up 34% year over year.

DoorDash (NASDAQ:DASH - Get Free Report) had its price target decreased by research analysts at Rosenblatt Securities from $270.00 to $225.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. Rosenblatt Securities's price target suggests a potential upside of 25.06% from the company's current price.

Other equities analysts also recently issued research reports about the company. JPMorgan Chase & Co. increased their price target on DoorDash from $250.00 to $262.00 in a research report on Wednesday, August 5th. Bank of America restated a "buy" rating on shares of DoorDash in a report on Friday, October 30th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $240.00 price objective on shares of DoorDash in a research note on Friday, October 30th. Argus increased their target price on shares of DoorDash from $190.00 to $270.00 in a report on Thursday, August 27th. Finally, Guggenheim reissued a "buy" rating and set a $255.00 target price on shares of DoorDash in a research report on Wednesday, October 14th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $248.66.

DoorDash Stock Down 9.4%

Shares of NASDAQ:DASH opened at $179.92 on Friday. DoorDash has a 52-week low of $143.30 and a 52-week high of $239.00. The stock has a market cap of $77.96 billion, a P/E ratio of 74.35 and a beta of 1.98. The business's 50 day moving average is $194.42 and its 200 day moving average is $182.64. The company has a quick ratio of 1.37, a current ratio of 1.46 and a debt-to-equity ratio of 0.25.

DoorDash (NASDAQ:DASH - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.06 EPS for the quarter, topping the consensus estimate of $0.81 by $0.25. The company had revenue of $4.62 billion for the quarter, compared to the consensus estimate of $4.56 billion. DoorDash had a return on equity of 10.40% and a net margin of 6.23%. DoorDash's quarterly revenue was up 34.0% on a year-over-year basis. During the same period last year, the business posted $0.55 EPS. Sell-side analysts predict that DoorDash will post 2.68 EPS for the current year.

Insider Buying and Selling at DoorDash

In other news, CFO Ravi Inukonda sold 1,017 shares of DoorDash stock in a transaction on Monday, October 12th. The stock was sold at an average price of $195.00, for a total value of $198,315.00. Following the transaction, the chief financial officer directly owned 217,911 shares in the company, valued at approximately $42,492,645. This trade represents a 0.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andy Fang sold 5,000 shares of the business's stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $183.69, for a total value of $918,450.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 349,430 shares of company stock worth $76,644,002. 44.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DoorDash

A number of large investors have recently added to or reduced their stakes in the company. Janus Henderson Group PLC raised its stake in shares of DoorDash by 40.2% in the first quarter. Janus Henderson Group PLC now owns 7,762,553 shares of the company's stock worth $1,159,377,000 after purchasing an additional 2,225,954 shares during the last quarter. Robeco Institutional Asset Management B.V. boosted its position in DoorDash by 2,304.0% in the third quarter. Robeco Institutional Asset Management B.V. now owns 3,452,110 shares of the company's stock valued at $633,635,000 after buying an additional 3,308,512 shares during the last quarter. Assenagon Asset Management S.A. boosted its position in DoorDash by 372.0% in the third quarter. Assenagon Asset Management S.A. now owns 3,137,719 shares of the company's stock valued at $575,928,000 after buying an additional 2,472,980 shares during the last quarter. Temasek Holdings Private Ltd boosted its position in DoorDash by 49.4% in the first quarter. Temasek Holdings Private Ltd now owns 3,461,501 shares of the company's stock valued at $519,744,000 after buying an additional 1,145,078 shares during the last quarter. Finally, Bank of America Corp DE increased its holdings in DoorDash by 18.4% in the 1st quarter. Bank of America Corp DE now owns 3,449,266 shares of the company's stock worth $517,907,000 after buying an additional 536,080 shares during the period. 90.64% of the stock is currently owned by institutional investors.

Key DoorDash News

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: DoorDash and Lyft introduced Lyft Go, a $9.99 monthly membership that includes DashPass and gives Lyft riders 8% credits toward future rides or DoorDash orders. The bundle could broaden DashPass adoption and encourage use across both platforms, although its financial contribution is not yet known. Lyft Debuts Joint Membership Program With DoorDash
• Neutral Sentiment: DoorDash is pairing its membership push with $12 meal boxes in a multi-city rollout, aiming to appeal to value-conscious customers. The move may support order growth, but the articles do not indicate its effect on margins. Why Is DoorDash Pairing a New Membership With $12 Meal Boxes?
• Negative Sentiment: The proposed $17 billion Instacart deal is prompting skepticism from some small grocers and questions about whether the combined business can compete with Amazon and Walmart. Deal execution and regulatory uncertainty could weigh on sentiment. Grocers Push Back on DoorDash's Instacart Deal Can a DoorDash-Instacart Fusion Stand Up to Amazon and Walmart?
• Negative Sentiment: Director Stanley Tang sold 23,125 shares, cutting his direct holdings by about 69%. The sale was made under a pre-arranged Rule 10b5-1 plan, which may make it less informative as a signal about his outlook, but could still unsettle investors. DoorDash Director Stanley Tang Sells 23,125 Shares

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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