DoorDash (NASDAQ:DASH) Shares Gap Up Following Insider Buying Activity

Key Points

• DoorDash shares gapped up premarket to $204.50 after Director Alfred Lin purchased a total of 514,047 shares across Nov. 25–26 (about $100.3M), materially increasing his stake according to SEC filings.
• Street sentiment is a Moderate Buy with a consensus target of $275.62; analysts are mixed but bullish overall, and DoorDash recently beat revenue expectations ($3.45B, +27.3% YoY) while missing EPS ($0.55 vs. $0.68).

DoorDash, Inc. (NASDAQ:DASH - Get Free Report) gapped up before the market opened on Monday following insider buying activity. The stock had previously closed at $198.37, but opened at $204.50. DoorDash shares last traded at $204.2710, with a volume of 1,728,616 shares.

Specifically, Director Alfred Lin purchased 125,000 shares of the firm's stock in a transaction that occurred on Wednesday, November 26th. The shares were purchased at an average cost of $199.01 per share, with a total value of $24,876,250.00. Following the purchase, the director owned 514,047 shares of the company's stock, valued at $102,300,493.47. This represents a 32.13% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Alfred Lin acquired 389,047 shares of the business's stock in a transaction on Tuesday, November 25th. The stock was acquired at an average price of $193.81 per share, with a total value of $75,401,199.07. Following the acquisition, the director owned 389,047 shares in the company, valued at $75,401,199.07. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information.

Wall Street Analysts Forecast Growth

DASH has been the subject of several recent analyst reports. Barclays cut their price objective on shares of DoorDash from $272.00 to $238.00 and set an "equal weight" rating for the company in a research report on Thursday, November 6th. Raymond James Financial reissued a "strong-buy" rating and issued a $325.00 price objective (up previously from $275.00) on shares of DoorDash in a research note on Thursday, August 7th. DA Davidson reissued a "neutral" rating and set a $260.00 price objective on shares of DoorDash in a research report on Thursday, November 6th. Benchmark raised their price target on DoorDash from $315.00 to $320.00 and gave the company a "buy" rating in a research note on Tuesday, November 4th. Finally, Wedbush upgraded shares of DoorDash from a "neutral" rating to an "outperform" rating and upped their target price for the company from $160.00 to $260.00 in a report on Thursday, November 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $275.62.

DoorDash Price Performance

The company has a debt-to-equity ratio of 0.29, a current ratio of 2.04 and a quick ratio of 2.04. The company has a 50-day simple moving average of $241.74 and a 200-day simple moving average of $238.80. The stock has a market cap of $88.20 billion, a PE ratio of 103.90 and a beta of 1.70.

DoorDash (NASDAQ:DASH - Get Free Report) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.68 by ($0.13). The company had revenue of $3.45 billion for the quarter, compared to analyst estimates of $3.35 billion. DoorDash had a net margin of 6.83% and a return on equity of 9.97%. DoorDash's revenue was up 27.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.38 earnings per share. Sell-side analysts anticipate that DoorDash, Inc. will post 2.22 EPS for the current fiscal year.

Institutional Trading of DoorDash

Large investors have recently modified their holdings of the business. Night Squared LP acquired a new stake in DoorDash in the first quarter valued at $2,780,000. Public Investment Fund grew its position in shares of DoorDash by 68.3% during the first quarter. Public Investment Fund now owns 821,389 shares of the company's stock worth $150,125,000 after acquiring an additional 333,369 shares during the last quarter. Mutual of America Capital Management LLC acquired a new position in shares of DoorDash during the first quarter worth approximately $7,200,000. Ardmore Road Asset Management LP increased its holdings in shares of DoorDash by 6.7% during the first quarter. Ardmore Road Asset Management LP now owns 80,000 shares of the company's stock valued at $14,622,000 after purchasing an additional 5,000 shares during the period. Finally, Junto Capital Management LP acquired a new stake in shares of DoorDash in the 1st quarter worth approximately $29,261,000. 90.64% of the stock is currently owned by institutional investors and hedge funds.

DoorDash Company Profile

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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