DoorDash (NASDAQ:DASH) Reaches New 12-Month High - What's Next?

Key Points

• DoorDash shares recently reached a new 52-week high, trading at $248.82, significantly above its previous close of $243.69.
• Analysts have mixed views on DoorDash, with 24 buy ratings but also several downgrades, indicating varying expectations about its future performance.
• The company's latest earnings report showed a revenue of $3.03 billion, which was below analyst expectations, although its earnings per share of $0.44 exceeded estimates.
• Insider selling has occurred recently, with executives reducing their stakes which could indicate a lack of confidence or strategic repositioning amid an increase in institutional investment.

DoorDash, Inc. (NASDAQ:DASH - Get Free Report) shares hit a new 52-week high during trading on Friday . The company traded as high as $249.46 and last traded at $248.82, with a volume of 977286 shares traded. The stock had previously closed at $243.69.

Wall Street Analyst Weigh In

A number of research firms have weighed in on DASH. Wall Street Zen lowered DoorDash from a "buy" rating to a "hold" rating in a research note on Friday, July 18th. BTIG Research lifted their price objective on DoorDash from $225.00 to $265.00 and gave the company a "buy" rating in a research note on Tuesday, July 1st. UBS Group reduced their price objective on DoorDash from $197.00 to $196.00 and set a "neutral" rating for the company in a research note on Wednesday, May 7th. Roth Capital lifted their price objective on DoorDash from $191.00 to $225.00 and gave the company a "neutral" rating in a research note on Monday, July 14th. Finally, Jefferies Financial Group reiterated a "hold" rating and set a $250.00 price objective (up previously from $235.00) on shares of DoorDash in a research note on Tuesday, July 15th. Twelve equities research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $230.34.

DoorDash Trading Up 1.9%

The firm has a market capitalization of $105.24 billion, a price-to-earnings ratio of 322.73 and a beta of 1.70. The company has a fifty day moving average price of $225.34 and a two-hundred day moving average price of $200.29.

DoorDash (NASDAQ:DASH - Get Free Report) last issued its earnings results on Tuesday, May 6th. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.05. The business had revenue of $3.03 billion for the quarter, compared to analysts' expectations of $3.10 billion. DoorDash had a return on equity of 4.39% and a net margin of 3.02%. The business's revenue for the quarter was up 20.7% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.06) EPS. As a group, equities research analysts expect that DoorDash, Inc. will post 2.22 earnings per share for the current year.

Insider Transactions at DoorDash

In related news, COO Prabir Adarkar sold 62,267 shares of the company's stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $202.67, for a total value of $12,619,652.89. Following the transaction, the chief operating officer directly owned 942,554 shares in the company, valued at approximately $191,027,419.18. This represents a 6.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Andy Fang sold 30,000 shares of the company's stock in a transaction that occurred on Thursday, June 5th. The shares were sold at an average price of $217.52, for a total value of $6,525,600.00. Following the completion of the transaction, the director owned 22,545 shares in the company, valued at $4,903,988.40. This represents a 57.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 441,773 shares of company stock valued at $98,711,043 in the last ninety days. 5.83% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in DoorDash by 25.8% in the first quarter. Vanguard Group Inc. now owns 39,397,286 shares of the company's stock valued at $7,200,642,000 after acquiring an additional 8,073,882 shares during the last quarter. Capital World Investors raised its position in DoorDash by 26.4% in the fourth quarter. Capital World Investors now owns 12,153,265 shares of the company's stock valued at $2,038,712,000 after purchasing an additional 2,538,160 shares during the period. Price T Rowe Associates Inc. MD raised its position in DoorDash by 15.0% in the first quarter. Price T Rowe Associates Inc. MD now owns 4,907,970 shares of the company's stock valued at $897,031,000 after purchasing an additional 641,601 shares during the period. Invesco Ltd. raised its position in DoorDash by 41.9% in the first quarter. Invesco Ltd. now owns 4,799,851 shares of the company's stock valued at $877,269,000 after purchasing an additional 1,416,194 shares during the period. Finally, Franklin Resources Inc. raised its position in DoorDash by 25.0% in the fourth quarter. Franklin Resources Inc. now owns 4,749,810 shares of the company's stock valued at $796,781,000 after purchasing an additional 949,414 shares during the period. 90.64% of the stock is currently owned by institutional investors and hedge funds.

About DoorDash

DoorDash, Inc, together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support.

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