DoorDash, Inc. (NASDAQ:DASH) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts remain moderately bullish: DoorDash has a consensus “Moderate Buy” rating from 36 analysts, with 26 buys, eight holds, one sell and one strong buy. The average 12-month price target is approximately $257.47.
• Business growth remains strong but valuation is elevated: Quarterly revenue rose 35.6% year over year to $4.45 billion, exceeding estimates, although EPS of $0.46 narrowly missed expectations. Shares traded near $197.24, with a P/E ratio above 103.
• Expansion and insider selling are key considerations: Partnerships with fashion retailers such as SKIMS and Windsor support DoorDash’s push beyond restaurant delivery, while executives and directors have sold substantial shares through pre-arranged Rule 10b5-1 plans, potentially affecting investor sentiment.

DoorDash, Inc. (NASDAQ:DASH - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the thirty-six analysts that are covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, eight have given a hold rating, twenty-six have assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $257.4722.

A number of brokerages have recently issued reports on DASH. Roth Capital upped their price objective on DoorDash from $200.00 to $220.00 and gave the stock a "neutral" rating in a research note on Monday, August 10th. Piper Sandler reissued 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. Scotiabank started coverage on shares of DoorDash in a report on Wednesday. They set a "sector outperform" rating and a $275.00 target price on the stock. Zacks Research upgraded shares of DoorDash from a "strong sell" rating to a "hold" rating in a report on Monday, August 17th. Finally, Barclays lowered shares of DoorDash from an "equal weight" rating to a "strong sell" rating in a research report on Monday, August 24th.

Key Stories Impacting DoorDash

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: Retail expansion: DoorDash is partnering with fashion brands including SKIMS and Windsor to deliver last-minute clothing and wardrobe items. The deals support DoorDash’s strategy of expanding beyond restaurant delivery, potentially increasing order frequency and broadening its addressable market. Windsor DoorDash partnership SKIMS DoorDash partnership
• Positive Sentiment: Technology and marketing visibility: DoorDash Labs was named Innovation Team of the Year, while a new Jameis Winston advertising campaign and football-season rewards promotion could support brand awareness and customer engagement. These developments are strategically favorable but have limited immediate earnings impact. DoorDash Labs award Jameis Winston DoorDash advertisement
• Neutral Sentiment: Human-interest coverage involving DoorDash orders, tipping and recipes is unlikely to materially affect the company’s financial outlook. Chicken recipes and DoorDash
• Negative Sentiment: Director Andy Fang sold 15,000 DASH shares for approximately $3.42 million at an average price of $228.31. Because the sale was executed under a pre-arranged Rule 10b5-1 plan, it is a weaker bearish signal, but it may still weigh on sentiment given the stock’s premium valuation. DoorDash director insider sale

Insider Activity

In related news, Director Stanley Tang sold 72,367 shares of the firm's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $225.16, for a total value of $16,294,153.72. Following the completion of the sale, the director directly owned 10,361 shares in the company, valued at approximately $2,332,882.76. This trade represents a 87.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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. Also, CEO Tony Xu sold 29,567 shares of DoorDash stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $230.00, for a total value of $6,800,410.00. Following the transaction, the chief executive officer owned 1,500 shares of the company's stock, valued at $345,000. The trade was a 95.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 399,553 shares of company stock valued at $87,034,140 over the last quarter. 44.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DoorDash

A number of institutional investors have recently bought and sold shares of DASH. CYBER HORNET ETFs LLC boosted its stake in shares of DoorDash by 6.5% during the 4th quarter. CYBER HORNET ETFs LLC now owns 979 shares of the company's stock worth $222,000 after acquiring an additional 60 shares during the period. Vise Technologies Inc. increased its holdings in shares of DoorDash by 1.8% during the 4th quarter. Vise Technologies Inc. now owns 3,517 shares of the company's stock worth $796,000 after acquiring an additional 63 shares during the last quarter. Washington Trust Advisors Inc. raised its stake in 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 during the period. Premier Path Wealth Partners LLC raised its stake in DoorDash by 2.7% in the 2nd quarter. Premier Path Wealth Partners LLC now owns 2,520 shares of the company's stock valued at $465,000 after acquiring an additional 67 shares during the period. Finally, Sunbelt Securities Inc. lifted its holdings in DoorDash by 124.1% during the 3rd quarter. Sunbelt Securities Inc. now owns 121 shares of the company's stock valued at $33,000 after purchasing an additional 67 shares during the last quarter. Institutional investors and hedge funds own 90.64% of the company's stock.

DoorDash Price Performance

NASDAQ:DASH opened at $197.24 on Thursday. DoorDash has a 52-week low of $143.30 and a 52-week high of $285.50. The company has a market cap of $85.46 billion, a P/E ratio of 103.27 and a beta of 1.79. 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 stock's 50-day simple moving average is $204.83 and its 200 day simple moving average is $179.36.

DoorDash (NASDAQ:DASH - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.46 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.01). The company had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.34 billion. DoorDash had a net margin of 5.29% and a return on equity of 8.48%. The business's revenue for the quarter was up 35.6% on a year-over-year basis. During the same period last year, the company posted $0.65 earnings per share. As a group, sell-side analysts forecast that DoorDash will post 2.49 EPS for the current fiscal year.

About DoorDash

DoorDash, Inc operates a local commerce platform that connects consumers with merchants and independent delivery workers. Its marketplace enables customers to order meals from restaurants as well as groceries, convenience items, alcohol where permitted, and products from other retail businesses through its websites and mobile applications.

The company also provides services designed to support merchants, including delivery logistics, online ordering, marketing, payment processing, and customer-engagement tools.

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