DoorDash Target of Unusually High Options Trading (NASDAQ:DASH)

Key Points

• DoorDash saw unusually heavy call-option activity on Monday, with 24,870 call contracts purchased—about 115% above its average volume.
• The stock fell $8.15 to $208.10, while quarterly revenue rose 35.6% year over year to $4.45 billion; EPS of $0.46 narrowly missed analyst expectations.
• Wall Street remains broadly positive, with a “Moderate Buy” consensus and an average price target of $254.09, although insiders have sold $26.8 million worth of shares over the past three months.

DoorDash, Inc. (NASDAQ:DASH - Get Free Report) was the target of some unusual options trading activity on Monday. Stock investors purchased 24,870 call options on the company. This is an increase of approximately 115% compared to the average volume of 11,582 call options.

DoorDash Price Performance

NASDAQ DASH traded down $8.15 during trading hours on Monday, reaching $208.10. 3,428,571 shares of the stock traded hands, compared to its average volume of 4,803,326. The stock has a 50 day simple moving average of $180.65 and a two-hundred day simple moving average of $174.56. DoorDash has a 1 year low of $143.30 and a 1 year high of $285.50. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.37 and a quick ratio of 1.37. The company has a market cap of $90.68 billion, a price-to-earnings ratio of 108.98 and a beta of 1.78.

DoorDash (NASDAQ:DASH - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.46 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.47 by ($0.01). The firm had revenue of $4.45 billion during the quarter, compared to analysts' expectations of $4.34 billion. DoorDash had a return on equity of 8.48% and a net margin of 5.29%.DoorDash's revenue for the quarter was up 35.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.65 earnings per share. On average, analysts predict that DoorDash will post 2.5 EPS for the current fiscal year.

Wall Street Analyst Weigh In

DASH has been the subject of a number of recent analyst reports. Cantor Fitzgerald lifted their target price on DoorDash from $230.00 to $260.00 and gave the company an "overweight" rating in a report on Thursday. Truist Financial raised their price target on shares of DoorDash from $330.00 to $336.00 and gave the company a "buy" rating in a report on Thursday. TD Cowen upped their price target on shares of DoorDash from $225.00 to $240.00 and gave the stock a "buy" rating in a report on Thursday. Needham & Company LLC reiterated a "buy" rating and issued a $265.00 price objective on shares of DoorDash in a research report on Thursday. Finally, Benchmark dropped their price objective on DoorDash from $285.00 to $270.00 and set a "buy" rating for the company in a research note on Monday, August 3rd. Twenty-three investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, DoorDash presently has an average rating of "Moderate Buy" and a consensus target price of $254.09.

Insider Buying and Selling at DoorDash

In other news, Director Shona L. Brown sold 582 shares of DoorDash stock in a transaction on Friday, June 26th. The stock was sold at an average price of $177.06, for a total value of $103,048.92. Following the completion of the transaction, the director directly owned 31,156 shares in the company, valued at approximately $5,516,481.36. The trade was a 1.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Prabir Adarkar sold 21,739 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $155.25, for a total value of $3,374,979.75. Following the sale, the chief operating officer owned 959,076 shares in the company, valued at approximately $148,896,549. The trade was a 2.22% 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 three months, insiders have sold 142,620 shares of company stock worth $26,822,778. Company insiders own 5.28% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. MV Capital Management Inc. purchased a new stake in DoorDash during the 4th quarter valued at about $26,000. Sunbelt Securities Inc. boosted its stake in shares of DoorDash by 124.1% during the third 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 period. Swiss RE Ltd. bought a new position in shares of DoorDash in the fourth quarter worth approximately $28,000. ST Germain D J Co. Inc. bought a new position in shares of DoorDash in the fourth quarter worth approximately $29,000. Finally, Morse Asset Management Inc purchased a new position in shares of DoorDash in the third quarter worth $36,000. 90.64% of the stock is owned by hedge funds and other institutional investors.

About DoorDash

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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