DoorDash (NASDAQ:DASH) Stock Rating Raised to Outperform at Wedbush

Key Points

• Wedbush upgraded DoorDash from “neutral” to “outperform” and set a $230 price target, implying approximately 28.5% upside from the reported $179 share price.
• DoorDash reported stronger-than-expected quarterly results, with EPS of $1.06 versus the $0.81 consensus and revenue of $4.62 billion, up 34% year over year.
• Analyst sentiment is broadly positive: DoorDash has a “Moderate Buy” consensus rating and an average price target of $252.52, although the planned $17 billion Instacart acquisition brings integration, regulatory and potential dilution risks.

DoorDash (NASDAQ:DASH - Get Free Report) was upgraded by equities research analysts at Wedbush from a "neutral" rating to an "outperform" rating in a note issued to investors on Friday, Briefing.com reports. The brokerage presently has a $230.00 price target on the stock. Wedbush's target price would indicate a potential upside of 28.49% from the stock's current price.

Other equities research analysts have also recently issued research reports about the company. Rosenblatt Securities started coverage on DoorDash in a research note on Tuesday, September 1st. They set a "buy" rating and a $270.00 target price for the company. Zacks Research raised shares of DoorDash from a "strong sell" rating to a "hold" rating in a research note on Monday, August 17th. Moffett Nathanson dropped their price objective on shares of DoorDash from $280.00 to $278.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Mizuho set a $255.00 price objective on shares of DoorDash in a research report on Friday. Finally, Piper Sandler restated a "neutral" rating and issued a $220.00 target price (up from $205.00) on shares of DoorDash in a research note on Thursday, August 6th. Two analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $252.52.

DoorDash Stock Performance

NASDAQ DASH opened at $179.00 on Friday. The stock has a fifty day simple moving average of $198.71 and a 200 day simple moving average of $183.29. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $77.56 billion, a price-to-earnings ratio of 93.72 and a beta of 1.90. DoorDash has a twelve month low of $143.30 and a twelve month high of $265.45.

DoorDash (NASDAQ:DASH - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $1.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.25. DoorDash had a net margin of 5.29% and a return on equity of 8.48%. The firm had revenue of $4.62 billion during the quarter, compared to analyst estimates of $4.56 billion. During the same quarter last year, the business earned $0.55 EPS. The company's revenue was up 34.0% compared to the same quarter last year. Sell-side analysts expect that DoorDash will post 2.51 EPS for the current year.

Insider Activity

In other news, Director Andy Fang sold 5,000 shares of the firm'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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Ravi Inukonda sold 1,017 shares of the business's stock in a transaction on Monday, October 12th. The shares were sold at an average price of $195.00, for a total value of $198,315.00. Following the sale, the chief financial officer owned 217,911 shares in the company, valued at approximately $42,492,645. The trade was a 0.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 393,998 shares of company stock valued at $85,861,330. 44.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in DASH. Activest Wealth Management boosted its stake in DoorDash by 892.9% during the third quarter. Activest Wealth Management now owns 139 shares of the company's stock valued at $26,000 after buying an additional 125 shares during the period. Washington Trust Advisors Inc. raised its holdings in shares of DoorDash by 81.0% in the 2nd quarter. Washington Trust Advisors Inc. now owns 143 shares of the company's stock valued at $26,000 after acquiring an additional 64 shares in the last quarter. City State Bank raised its holdings in shares of DoorDash by 56.0% in the 3rd quarter. City State Bank now owns 156 shares of the company's stock valued at $29,000 after acquiring an additional 56 shares in the last quarter. Signature Equity Partners LLC boosted its position in shares of DoorDash by 213.5% during the 3rd quarter. Signature Equity Partners LLC now owns 163 shares of the company's stock valued at $30,000 after acquiring an additional 111 shares during the last quarter. Finally, Clark Wealth Partners boosted its position in shares of DoorDash by 833.3% during the 3rd quarter. Clark Wealth Partners now owns 196 shares of the company's stock valued at $36,000 after acquiring an additional 175 shares during the last quarter. 90.64% of the stock is currently owned by hedge funds and other institutional investors.

DoorDash News Summary

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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