Traders Purchase High Volume of Call Options on DoorDash (NASDAQ:DASH)

Key Points

• Traders have significantly increased their activity in call options for DoorDash, purchasing 124,574 call options, which marks a 632% increase from the average daily volume.
• Analysts have raised their price targets for DoorDash, with upgrades from firms such as KeyCorp and JMP Securities, indicating a consensus rating of "Moderate Buy" and a target price of $255.65.
• Recently, DoorDash's CFO and a director sold shares, contributing to a total of 583,537 shares sold by insiders in the last three months, while 90.64% of the stock is held by institutional investors.

DoorDash, Inc. (NASDAQ:DASH - Get Free Report) saw unusually large options trading activity on Thursday. Stock traders bought 124,574 call options on the stock. Thisrepresentsanincreaseofapproximately632% compared to the average daily volume of 17,018 call options.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Wedbush restated an "outperform" rating on shares of DoorDash in a report on Wednesday, May 7th. Wall Street Zen upgraded DoorDash from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $250.00 price objective (up previously from $235.00) on shares of DoorDash in a report on Tuesday, July 15th. KeyCorp restated an "overweight" rating and issued a $325.00 price objective (up from $295.00) on shares of DoorDash in a research report on Thursday. Finally, JMP Securities increased their price objective on DoorDash from $250.00 to $335.00 and gave the stock a "market outperform" rating in a research note on Thursday. Eleven research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $255.65.

Insider Buying and Selling

In other DoorDash news, CFO Ravi Inukonda sold 1,425 shares of the company's stock in a transaction dated Friday, July 25th. The shares were sold at an average price of $244.78, for a total transaction of $348,811.50. Following the completion of the sale, the chief financial officer directly owned 244,905 shares of the company's stock, valued at approximately $59,947,845.90. This represents a 0.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Shona L. Brown sold 825 shares of DoorDash stock in a transaction on Friday, July 25th. The shares were sold at an average price of $250.00, for a total value of $206,250.00. Following the transaction, the director directly owned 43,477 shares of the company's stock, valued at approximately $10,869,250. The trade was a 1.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 583,537 shares of company stock worth $133,720,004. 5.83% of the stock is currently owned by insiders.

Institutional Trading of DoorDash

Institutional investors and hedge funds have recently bought and sold shares of the company. Saudi Central Bank bought a new stake in DoorDash during the first quarter valued at approximately $25,000. WPG Advisers LLC bought a new position in DoorDash during the first quarter valued at $26,000. Pacific Center for Financial Services purchased a new stake in shares of DoorDash in the first quarter valued at $27,000. GFG Capital LLC purchased a new stake in shares of DoorDash in the second quarter valued at $30,000. Finally, Harbour Investments Inc. raised its stake in shares of DoorDash by 55.6% in the first quarter. Harbour Investments Inc. now owns 196 shares of the company's stock valued at $36,000 after acquiring an additional 70 shares during the period. 90.64% of the stock is currently owned by institutional investors.

DoorDash Price Performance

Shares of NASDAQ:DASH traded up $10.16 during midday trading on Thursday, hitting $268.24. 6,274,378 shares of the company's stock were exchanged, compared to its average volume of 4,759,124. The stock has a 50 day moving average price of $233.72 and a 200-day moving average price of $205.22. The company has a market cap of $113.66 billion, a PE ratio of 349.73 and a beta of 1.70. DoorDash has a 12 month low of $121.18 and a 12 month high of $278.15.

DoorDash (NASDAQ:DASH - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.65 earnings per share for the quarter, beating analysts' consensus estimates of $0.42 by $0.23. The firm had revenue of $3.28 billion for the quarter, compared to analysts' expectations of $3.16 billion. DoorDash had a net margin of 3.02% and a return on equity of 4.39%. The company's quarterly revenue was up 24.9% on a year-over-year basis. During the same period in the previous year, the company earned ($0.38) earnings per share. On average, analysts anticipate that DoorDash will post 2.22 EPS for the current fiscal year.

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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