DoorDash (NASDAQ:DASH) Stock Falls 6.1% - Here's Why

Key Points

• DoorDash shares fell 6.1% to about $181.57 in light trading, with volume down 91% from the average daily level.
• The latest quarter showed mixed results: revenue rose 35.6% year over year to $4.45 billion, topping estimates, but EPS of $0.46 narrowly missed the $0.47 consensus.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with a $257.47 price target; however, insiders sold roughly $86.5 million of shares during the past quarter, adding a potential negative signal.

DoorDash, Inc. (NASDAQ:DASH - Get Free Report) dropped 6.1% during trading on Monday. The company traded as low as $180.11 and last traded at $181.5680. 429,437 shares traded hands during trading, a decline of 91% from the average daily volume of 4,661,319 shares. The stock had previously closed at $193.36.

Key Stories Impacting DoorDash

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: Traders purchased 14,194 DASH call options, about 37% above the average daily call volume of 10,376 contracts. The activity may signal increased bullish speculation, although options positioning does not guarantee a sustained stock advance.
• Positive Sentiment: DoorDash named WPP its global media partner, expanding an existing relationship. A centralized global advertising strategy could improve brand efficiency and support customer and merchant growth. DoorDash doubles down on WPP, naming agency global media partner
• Positive Sentiment: DoorDash and Round21 are planning a limited-edition WNBA postseason collection, providing a modest branding and engagement opportunity. DoorDash, Round21 To Drop Limited-Edition Collection for the WNBA Postseason

Wall Street Analyst Weigh In

Several research firms recently issued reports on DASH. Wells Fargo & Company raised their target price on shares of DoorDash from $199.00 to $225.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. KeyCorp dropped their price target on shares of DoorDash from $280.00 to $275.00 and set an "overweight" rating for the company in a research report on Tuesday, July 14th. Needham & Company LLC reaffirmed a "buy" rating and set a $265.00 price target on shares of DoorDash in a research note on Thursday, August 6th. Sanford C. Bernstein reiterated an "outperform" rating on shares of DoorDash in a report on Thursday, September 3rd. Finally, Roth Capital boosted their price objective on shares of DoorDash from $200.00 to $220.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $257.47.

DoorDash Price Performance

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.37 and a current ratio of 1.37. The firm has a market cap of $78.65 billion, a price-to-earnings ratio of 94.64 and a beta of 1.79. The company's fifty day moving average is $206.14 and its two-hundred day moving average is $181.06.

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

Insider Buying and Selling at DoorDash

In related news, Director Stanley Tang sold 30,835 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $225.98, for a total transaction of $6,968,093.30. Following the transaction, the director directly owned 10,361 shares of the company's stock, valued at approximately $2,341,378.78. The trade was a 74.85% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andy Fang sold 15,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $228.31, for a total transaction of $3,424,650.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 396,155 shares of company stock worth $86,469,551. Insiders own 44.90% of the company's stock.

Hedge Funds Weigh In On DoorDash

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vise Technologies Inc. increased its stake in DoorDash by 1.8% during the 4th quarter. Vise Technologies Inc. now owns 3,517 shares of the company's stock valued at $796,000 after purchasing an additional 63 shares in the last quarter. Washington Trust Advisors Inc. grew its holdings in shares of DoorDash by 81.0% during the second quarter. Washington Trust Advisors Inc. now owns 143 shares of the company's stock valued at $26,000 after buying an additional 64 shares during the last quarter. Premier Path Wealth Partners LLC grew its holdings in shares of DoorDash by 2.7% during the second quarter. Premier Path Wealth Partners LLC now owns 2,520 shares of the company's stock valued at $465,000 after buying an additional 67 shares during the last quarter. AXS Investments LLC increased its position in shares of DoorDash by 1.3% during the fourth quarter. AXS Investments LLC now owns 5,438 shares of the company's stock valued at $1,232,000 after acquiring an additional 69 shares in the last quarter. Finally, Prestige Wealth Management Group LLC increased its position in shares of DoorDash by 6.4% during the fourth quarter. Prestige Wealth Management Group LLC now owns 1,209 shares of the company's stock valued at $274,000 after acquiring an additional 73 shares in the last quarter. 90.64% of the stock is owned by hedge funds and other institutional investors.

DoorDash Company Profile

DoorDash, Inc operates a local commerce platform that connects consumers with merchants and independent delivery workers. Its marketplace enables customers to order meals from restaurants as well as groceries, convenience items, alcohol where permitted, and products from other retail businesses through its websites and mobile applications.

The company also provides services designed to support merchants, including delivery logistics, online ordering, marketing, payment processing, and customer-engagement tools.

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