California State Teachers Retirement System Sells 9,044 Shares of DoorDash, Inc. $DASH

Key Points

• California State Teachers Retirement System reduced its DoorDash stake by 9,044 shares, or 1.5%, leaving it with 611,597 shares valued at approximately $91.8 million. Institutional investors collectively own 90.64% of the company.
• DoorDash launched its in-house DoorDash Air drone-delivery program after receiving FAA Part 135 certification. The initiative could improve delivery margins and expand into retail and pharmaceutical shipments, but it will require significant upfront investment.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $252.89 target price, although several firms recently lowered their targets. DoorDash trades at a high P/E ratio of 92.16, while upcoming earnings are expected to show a decline.

California State Teachers Retirement System lowered its stake in DoorDash, Inc. (NASDAQ:DASH - Free Report) by 1.5% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 611,597 shares of the company's stock after selling 9,044 shares during the quarter. California State Teachers Retirement System owned about 0.14% of DoorDash worth $91,831,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the stock. Eastern Bank lifted its holdings in shares of DoorDash by 714.3% in the fourth quarter. Eastern Bank now owns 114 shares of the company's stock valued at $26,000 after purchasing an additional 100 shares in the last quarter. MV Capital Management Inc. bought a new position in shares of DoorDash during the fourth quarter worth about $26,000. Swiss RE Ltd. bought a new position in shares of DoorDash during the fourth quarter worth about $28,000. ST Germain D J Co. Inc. acquired a new stake in DoorDash in the 4th quarter valued at approximately $29,000. Finally, Kemnay Advisory Services Inc. acquired a new stake in DoorDash in the 4th quarter valued at approximately $32,000. Institutional investors and hedge funds own 90.64% of the company's stock.

Key Stories Impacting DoorDash

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: DoorDash launched DoorDash Air after receiving Federal Aviation Administration Part 135 air-carrier certification. The approval allows the company to conduct commercial drone deliveries in the U.S. and represents a significant regulatory and operational milestone. DoorDash launches in-house drone delivery program after FAA certification
• Positive Sentiment: The company plans to develop its own aircraft and an end-to-end aerial delivery network that will eventually operate through the DoorDash app. If scaled successfully, drones could reduce reliance on gig-economy labor for certain short- and mid-range orders, potentially improving delivery economics and margins. DoorDash is building its own drone delivery business
• Positive Sentiment: DoorDash’s internally developed drone service could expand beyond restaurant orders into retail, pharmaceuticals and other time-sensitive, higher-value deliveries. The company already works with Wing and Flytrex, so the in-house program adds another avenue for autonomous-delivery growth. DoorDash is launching a competing drone delivery service
• Neutral Sentiment: Analysts expect a decline in earnings in DoorDash’s upcoming report, with the company lacking two key indicators typically associated with an earnings beat. This could increase volatility ahead of results. Analysts Estimate DoorDash to Report a Decline in Earnings
• Negative Sentiment: The drone initiative will require substantial upfront investment in aircraft, infrastructure and regulatory compliance. Those costs could weigh on near-term free cash flow before delivery density is high enough to generate meaningful operating leverage. With DASH trading at a high earnings multiple, investors may demand clear evidence that the program can produce stronger profitability.

Analyst Ratings Changes

A number of research firms have weighed in on DASH. Susquehanna reduced their price target on DoorDash from $250.00 to $225.00 and set a "positive" rating for the company in a research report on Friday, May 8th. Moffett Nathanson set a $276.00 price objective on shares of DoorDash in a report on Wednesday, April 15th. BTIG Research reduced their target price on shares of DoorDash from $280.00 to $225.00 and set a "buy" rating for the company in a report on Friday, June 12th. Needham & Company LLC reaffirmed a "buy" rating and issued a $265.00 target price on shares of DoorDash in a research report on Thursday, May 7th. Finally, Jefferies Financial Group lifted their price target on shares of DoorDash from $220.00 to $225.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $252.89.

Insider Activity at DoorDash

In other DoorDash news, Director Stanley Tang sold 23,125 shares of the stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $191.19, for a total value of $4,421,268.75. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Shona L. Brown sold 582 shares of the firm's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $177.06, for a total transaction of $103,048.92. Following the sale, the director owned 31,156 shares of the company's stock, valued at $5,516,481.36. This trade represents a 1.83% 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. Insiders have sold a total of 74,927 shares of company stock worth $13,241,532 in the last quarter. 5.83% of the stock is owned by corporate insiders.

DoorDash Stock Performance

Shares of NASDAQ DASH opened at $193.53 on Thursday. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $84.32 billion, a P/E ratio of 92.16 and a beta of 1.78. DoorDash, Inc. has a 12 month low of $143.30 and a 12 month high of $285.50. The stock has a 50 day moving average of $174.13 and a 200-day moving average of $174.90.

DoorDash (NASDAQ:DASH - Get Free Report) last posted 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 return on equity of 9.58% and a net margin of 6.29%.The business had revenue of $4.04 billion for the quarter, compared to analysts' expectations of $4.15 billion. During the same quarter in the prior year, the business earned $0.44 EPS. The firm's revenue for the quarter was up 33.1% on a year-over-year basis. As a group, equities research analysts predict that DoorDash, Inc. will post 2.39 EPS for the current year.

DoorDash 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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