DoorDash Sees Unusually Large Options Volume (NASDAQ:DASH)

Key Points

• DoorDash saw unusually high call-option activity on Wednesday, with 35,208 calls purchased—256% above its average daily volume of 9,896 contracts.
• DASH shares fell 6.6% to $180.30, while the company’s latest quarter showed 35.6% year-over-year revenue growth to $4.45 billion but slightly missed EPS estimates.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and a $254.95 price target, although insiders sold about $85.7 million of stock in the last quarter.

DoorDash, Inc. (NASDAQ:DASH - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock investors bought 35,208 call options on the stock. This is an increase of 256% compared to the average daily volume of 9,896 call options.

DoorDash Stock Down 6.6%

Shares of DASH stock traded down $12.79 during mid-day trading on Wednesday, reaching $180.30. 1,739,974 shares of the company's stock traded hands, compared to its average volume of 4,601,859. DoorDash has a 12 month low of $143.30 and a 12 month high of $285.50. The company has a market cap of $78.12 billion, a P/E ratio of 94.42 and a beta of 1.90. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.27. The company's 50-day moving average price is $206.24 and its 200-day moving average price is $183.34.

DoorDash (NASDAQ:DASH - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.46 EPS for the quarter, missing analysts' consensus estimates of $0.47 by ($0.01). The company had revenue of $4.45 billion during the quarter, compared to the consensus estimate of $4.34 billion. DoorDash had a return on equity of 8.48% and a net margin of 5.29%. The business's revenue for the quarter was up 35.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.65 earnings per share. On average, equities analysts expect that DoorDash will post 2.51 earnings per share for the current fiscal year.

Analysts Set New Price Targets

DASH has been the subject of several research analyst reports. TD Cowen increased their price objective on DoorDash from $225.00 to $240.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Sanford C. Bernstein restated an "outperform" rating on shares of DoorDash in a report on Thursday, September 3rd. Piper Sandler reaffirmed a "neutral" rating and issued a $220.00 price target (up from $205.00) on shares of DoorDash in a research note on Thursday, August 6th. Zacks Research upgraded shares of DoorDash from a "strong sell" rating to a "hold" rating in a report on Monday, August 17th. Finally, JPMorgan Chase & Co. lifted their price target on shares of DoorDash from $250.00 to $262.00 in a report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $254.95.

Insider Activity

In related news, CEO Tony Xu sold 29,567 shares of the firm's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $230.00, for a total value of $6,800,410.00. Following the sale, the chief executive officer directly owned 1,500 shares of the company's stock, valued at $345,000. This trade represents a 95.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andy Fang sold 15,000 shares of the business's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $228.31, for a total value of $3,424,650.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 392,981 shares of company stock valued at $85,663,015. 44.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DoorDash

Hedge funds have recently added to or reduced their stakes in the stock. MV Capital Management Inc. bought a new position in DoorDash during the 4th quarter valued at about $26,000. Washington Trust Advisors Inc. grew its position in shares of DoorDash by 81.0% during the 2nd quarter. Washington Trust Advisors Inc. now owns 143 shares of the company's stock worth $26,000 after buying an additional 64 shares in the last quarter. CENTRAL TRUST Co raised its holdings in shares of DoorDash by 269.4% in the 1st quarter. CENTRAL TRUST Co now owns 266 shares of the company's stock valued at $40,000 after purchasing an additional 194 shares in the last quarter. University of Texas Texas AM Investment Management Co. increased its holdings in shares of DoorDash by 60.3% in the 4th quarter. University of Texas Texas AM Investment Management Co. now owns 287 shares of the company's stock valued at $65,000 after acquiring an additional 108 shares during the period. Finally, Ascentis Independent Advisors purchased a new position in DoorDash in the first quarter valued at about $55,000. 90.64% of the stock is owned by institutional investors.

About DoorDash

DoorDash, Inc is a technology company that operates a local commerce platform connecting consumers with restaurants, grocery stores, convenience retailers and other merchants. Through its DoorDash app and website, customers can discover businesses, place orders for delivery or pickup, and access related services. The company also provides merchants with tools for online ordering, logistics, customer engagement, advertising and business analytics.

DoorDash generates additional activity through subscription programs such as DashPass, which provides participating customers with delivery-related benefits, and through its logistics and commerce solutions for merchants.

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