DoorDash (NASDAQ:DASH) Raised to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded DoorDash from “strong sell” to “hold”, adding to a mixed but generally constructive analyst backdrop for the stock.
• Analyst sentiment remains broadly positive overall: DoorDash has a Moderate Buy consensus rating, with a consensus price target of $259.58, though several firms have recently cut their targets.
• DoorDash reported Q1 earnings of $0.42 per share, topping estimates, while revenue rose 33.1% year over year to $4.04 billion; the stock was trading well below its 52-week high at around $149.

DoorDash (NASDAQ:DASH - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

DASH has been the subject of a number of other reports. Cantor Fitzgerald cut their price target on shares of DoorDash from $285.00 to $230.00 and set an "overweight" rating for the company in a report on Thursday, February 19th. Oppenheimer cut their price target on shares of DoorDash from $280.00 to $235.00 and set an "outperform" rating for the company in a report on Thursday, February 19th. Needham & Company LLC reissued a "buy" rating and issued a $265.00 price target on shares of DoorDash in a report on Thursday, May 7th. Guggenheim cut their price target on shares of DoorDash from $275.00 to $255.00 and set a "buy" rating for the company in a report on Thursday, February 19th. Finally, Mizuho cut their price target on shares of DoorDash from $320.00 to $255.00 and set an "outperform" rating for the company in a report on Tuesday, March 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $259.58.

DoorDash Stock Performance

Shares of DASH opened at $149.07 on Tuesday. The firm has a 50-day moving average price of $165.39 and a 200 day moving average price of $194.12. The firm has a market capitalization of $64.76 billion, a PE ratio of 70.99 and a beta of 1.87. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 0.27. DoorDash has a 52-week low of $143.30 and a 52-week high of $285.50.

DoorDash (NASDAQ:DASH - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.36 by $0.06. DoorDash had a net margin of 6.29% and a return on equity of 9.58%. The company had revenue of $4.04 billion during the quarter, compared to the consensus estimate of $4.15 billion. During the same period in the prior year, the company earned $0.44 EPS. DoorDash's revenue was up 33.1% on a year-over-year basis. On average, sell-side analysts anticipate that DoorDash will post 2.45 earnings per share for the current fiscal year.

Insider Transactions at DoorDash

In other news, Director Stanley Tang sold 21,433 shares of the stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $150.00, for a total value of $3,214,950.00. Following the completion of the sale, the director directly owned 19,279 shares of the company's stock, valued at $2,891,850. This represents a 52.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shona L. Brown sold 1,250 shares of the stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $176.61, for a total transaction of $220,762.50. Following the completion of the sale, the director directly owned 31,002 shares of the company's stock, valued at $5,475,263.22. This trade represents a 3.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 42,683 shares of company stock valued at $6,908,813 over the last three months. 5.83% of the stock is owned by corporate insiders.

Institutional Trading of DoorDash

Hedge funds have recently made changes to their positions in the stock. Physician Wealth Advisors Inc. lifted its position in shares of DoorDash by 284.0% in the third quarter. Physician Wealth Advisors Inc. now owns 96 shares of the company's stock worth $26,000 after purchasing an additional 71 shares in the last quarter. Eastern Bank lifted its position in shares of DoorDash by 714.3% in the fourth quarter. Eastern Bank now owns 114 shares of the company's stock worth $26,000 after purchasing an additional 100 shares in the last quarter. MV Capital Management Inc. purchased a new stake in shares of DoorDash in the fourth quarter worth approximately $26,000. Swiss RE Ltd. purchased a new stake in shares of DoorDash in the fourth quarter worth approximately $28,000. Finally, ST Germain D J Co. Inc. purchased a new stake in shares of DoorDash in the fourth quarter worth approximately $29,000. 90.64% of the stock is owned by hedge funds and other institutional investors.

DoorDash News Summary

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: DoorDash announced a new nationwide partnership with Urban Outfitters to expand into on-demand retail, a sign that the platform is broadening beyond food delivery and could drive incremental order volume and user engagement. Urban Outfitters and DoorDash Partner to Bring On-Demand Style to Gen Z
• Positive Sentiment: A report highlighting DoorDash’s strong Q1 growth suggests the company continues to scale its platform, which supports the long-term investment case even though margin guidance was trimmed. DoorDash posts strong Q1 growth but trims margin outlook
• Neutral Sentiment: Industry research projecting DoorDash could serve 20% of U.S. restaurants by 2035 points to a large future opportunity, but it is still a long-dated estimate and may have limited immediate impact. DoorDash Projected to Reach 20% of US Restaurants by 2035
• Negative Sentiment: Multiple crime and safety-related stories involving DoorDash drivers and deliveries may add to investor concerns about operational risk, driver safety, and reputational issues. DoorDash driver among victims in Memorial Drive shooting, family says Late-night DoorDash delivery to abandoned house sparks safety concerns
• Negative Sentiment: Fraud and account-abuse headlines, including a viral refund case and reports of rented or stolen delivery accounts, could increase concerns about platform integrity and costs tied to abuse prevention. A customer used AI to trick DoorDash into issuing a refund. The company's response is going viral No driver's license, no problem: How Uber, DoorDash and Lyft accounts are being rented and stolen online for hundreds.
• Negative Sentiment: Legal and liability-related coverage, including lawsuits and criminal cases tied to drivers, can add headline risk even if the direct financial impact is unclear. Nebraska family drops DoorDash from lawsuit in death of daughter killed in Kansas Court docs: DoorDash driver shot and killed man in his way because he ‘had stuff to do’

DoorDash Company Profile

DoorDash, Inc operates a technology-driven logistics and food-delivery marketplace that connects consumers, merchants and independent delivery contractors. The company's core service enables customers to order from local restaurants and retailers through its app and website while DoorDash handles last-mile fulfillment via its network of drivers, known as “Dashers.” Over time the platform has broadened beyond restaurant deliveries to include groceries, convenience items and retail deliveries, positioning DoorDash as a broader on-demand logistics provider for consumer goods.

In addition to its marketplace, DoorDash offers a suite of products and services for consumers and businesses.

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