Zacks Research Downgrades DoorDash (NASDAQ:DASH) to Strong Sell

Key Points

• Zacks Research downgraded DoorDash (DASH) from "hold" to Strong Sell, a prominent negative signal that can pressure sentiment and attract short-term sellers.
• Despite the Zacks downgrade, the brokerage consensus remains a Moderate Buy with an average price target of $260.88, reflecting mixed analyst views and several recent price-target revisions.
• DoorDash missed quarterly EPS ($0.48 vs. $0.58 est.) though revenue rose 37.7% year-over-year, and insiders sold about 94,406 shares (~$17.8M) over the last three months, which may raise near-term concerns.

DoorDash (NASDAQ:DASH - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research analysts also recently issued reports on DASH. Cantor Fitzgerald decreased their price objective on DoorDash from $285.00 to $230.00 and set an "overweight" rating for the company in a report on Thursday, February 19th. Truist Financial increased their price target on DoorDash from $330.00 to $340.00 and gave the company a "buy" rating in a research report on Thursday, February 19th. Mizuho reduced their price target on DoorDash from $320.00 to $255.00 and set an "outperform" rating for the company in a research report on Tuesday, March 3rd. Morgan Stanley reissued an "overweight" rating and set a $275.00 price target on shares of DoorDash in a research report on Thursday, February 19th. Finally, Stifel Nicolaus reduced their price target on DoorDash from $215.00 to $185.00 and set a "hold" rating for the company in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $260.88.

DoorDash Stock Up 2.5%

NASDAQ:DASH opened at $163.55 on Monday. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.41 and a current ratio of 1.41. The company has a market cap of $71.05 billion, a PE ratio of 77.15 and a beta of 1.93. DoorDash has a 52-week low of $143.30 and a 52-week high of $285.50. The stock has a 50-day simple moving average of $166.36 and a 200 day simple moving average of $207.14.

DoorDash (NASDAQ:DASH - Get Free Report) last posted its quarterly earnings data on Wednesday, February 18th. The company reported $0.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.58 by ($0.10). The firm had revenue of $3.96 billion for the quarter, compared to the consensus estimate of $3.98 billion. DoorDash had a return on equity of 10.15% and a net margin of 6.82%.The firm's quarterly revenue was up 37.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.33 earnings per share. On average, sell-side analysts expect that DoorDash will post 2.22 EPS for the current fiscal year.

Insider Activity

In other news, Director Shona L. Brown sold 1,250 shares of the firm's stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $176.61, for a total value of $220,762.50. Following the completion of the sale, the director directly owned 31,002 shares of the company's stock, valued at $5,475,263.22. This trade represents a 3.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Stanley Tang sold 21,433 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $150.00, for a total value of $3,214,950.00. Following the completion of the sale, the director directly owned 19,279 shares of the company's stock, valued at approximately $2,891,850. The trade was a 52.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 94,406 shares of company stock valued at $17,825,074 over the last three months. Insiders own 5.83% of the company's stock.

Institutional Trading of DoorDash

Hedge funds have recently made changes to their positions in the business. Resonant Capital Advisors LLC lifted its holdings in DoorDash by 3.5% during the 3rd quarter. Resonant Capital Advisors LLC now owns 1,229 shares of the company's stock worth $334,000 after purchasing an additional 42 shares during the last quarter. Premier Path Wealth Partners LLC lifted its holdings in DoorDash by 1.9% during the 3rd quarter. Premier Path Wealth Partners LLC now owns 2,414 shares of the company's stock worth $657,000 after purchasing an additional 45 shares during the last quarter. Quotient Wealth Partners LLC lifted its holdings in DoorDash by 3.2% during the 3rd quarter. Quotient Wealth Partners LLC now owns 1,537 shares of the company's stock worth $418,000 after purchasing an additional 48 shares during the last quarter. Callan Family Office LLC lifted its holdings in DoorDash by 0.8% during the 3rd quarter. Callan Family Office LLC now owns 6,123 shares of the company's stock worth $1,665,000 after purchasing an additional 51 shares during the last quarter. Finally, Keel Point LLC lifted its holdings in DoorDash by 4.3% during the 3rd quarter. Keel Point LLC now owns 1,393 shares of the company's stock worth $379,000 after purchasing an additional 58 shares during the last quarter. 90.64% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting DoorDash

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: Brokerage consensus remains constructive — DoorDash carries a "Moderate Buy" consensus from brokerages, which supports investor confidence in the name. DoorDash receives consensus 'Moderate Buy'
• Positive Sentiment: High-profile publicity around tips and driver support has generated favorable headlines and consumer/driver sympathy that can boost near-term sentiment. Coverage includes a DoorDash driver praising a tax policy that saved her money and a viral Oval Office tipping moment. 'DoorDash Grandma' praises tax break Trump tips DoorDash driver
• Neutral Sentiment: A criminal case update: the wife of a convicted town official who shot a DoorDash driver has pleaded guilty. This keeps the safety issue in the headlines but does not currently imply corporate liability. Wife pleads guilty in shooting of DoorDash driver
• Negative Sentiment: Zacks added DASH to its Rank #5 (Strong Sell) list — a high-visibility negative signal that can pressure sentiment and attract short-term sellers. Zacks adds DASH to Strong Sell list
• Negative Sentiment: Stifel Nicolaus cut DoorDash's price target from $215 to $185 and moved to a "hold" rating — a downward revision that reduces upside expectations and can weigh on the stock. Stifel lowers price target
• Negative Sentiment: Regulatory risk: coverage about possible city-wide bans on delivery platforms (including DoorDash) highlights local regulatory and compliance threats that could hit revenue in affected markets. City-wide ban risk for delivery platforms

DoorDash Company 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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