DoorDash (NASDAQ:DASH) Upgraded to “Hold” at Zacks Research

DoorDash (NASDAQ:DASH) was upgraded by equities researchers at Zacks Research from a “strong sell” rating to a “hold” rating in a report released on Monday,Zacks.com reports.

Several other research analysts also recently weighed in on the company. Wells Fargo & Company upped their price target on DoorDash from $199.00 to $225.00 and gave the stock an “equal weight” rating in a research note on Friday, August 7th. Benchmark reduced their price objective on shares of DoorDash from $285.00 to $270.00 and set a “buy” rating on the stock in a research report on Monday, August 3rd. Truist Financial boosted their target price on shares of DoorDash from $330.00 to $336.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Barclays upped their target price on shares of DoorDash from $220.00 to $230.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $220.00 target price (up from $205.00) on shares of DoorDash in a research note on Thursday, August 6th. Twenty-three investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat, DoorDash currently has an average rating of “Moderate Buy” and an average price target of $254.09.

DoorDash Price Performance

Shares of DoorDash stock opened at $216.35 on Monday. The company has a market capitalization of $93.74 billion, a price-to-earnings ratio of 113.27 and a beta of 1.78. 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 stock’s 50-day simple moving average is $188.55 and its 200-day simple moving average is $174.89. DoorDash has a 52 week low of $143.30 and a 52 week high of $285.50.

DoorDash (NASDAQ:DASH) last released its 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 business had revenue of $4.45 billion for the quarter, compared to analysts’ expectations 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 quarter in the prior year, the business posted $0.65 EPS. As a group, analysts expect that DoorDash will post 2.47 earnings per share for the current fiscal year.

Insider Activity at DoorDash

In other news, COO Prabir Adarkar sold 21,739 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $155.25, for a total value of $3,374,979.75. Following the sale, the chief operating officer owned 959,076 shares of the company’s stock, valued at approximately $148,896,549. This represents a 2.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Andy Fang sold 5,000 shares of the firm’s stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $180.00, for a total transaction of $900,000.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 142,620 shares of company stock valued at $26,822,778 over the last three months. Corporate insiders own 5.28% of the company’s stock.

Hedge Funds Weigh In On DoorDash

Several hedge funds have recently added to or reduced their stakes in DASH. MV Capital Management Inc. bought a new stake in DoorDash in the fourth quarter worth about $26,000. Sunbelt Securities Inc. grew its stake in shares of DoorDash by 124.1% during the third quarter. Sunbelt Securities Inc. now owns 121 shares of the company’s stock valued at $33,000 after buying an additional 67 shares during the last quarter. Swiss RE Ltd. bought a new position in shares of DoorDash during the fourth quarter valued at approximately $28,000. ST Germain D J Co. Inc. purchased a new stake in shares of DoorDash in the fourth quarter worth approximately $29,000. Finally, Morse Asset Management Inc purchased a new stake in shares of DoorDash in the third quarter worth approximately $36,000. 90.64% of the stock is currently owned by institutional investors.

DoorDash News Summary

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: Expanded retail partnerships broaden DoorDash’s addressable market. DoorDash is making back-to-school shopping available through Barnes & Noble, Carter’s and Kohl’s, while Australia’s BIG W is launching same-day delivery through the platform. These deals could increase order frequency and diversify revenue beyond restaurant delivery. DoorDash Makes Back-to-School Shopping Easier with Barnes & Noble, Carter’s, and Kohl’s BIG W launches same-day delivery through DoorDash partnership
• Positive Sentiment: DoorDash is expanding into video-game commerce. The company has begun selling video games, apparently using pickup or retailer fulfillment rather than delivering the products directly. The initiative is strategically positive because it extends DoorDash’s marketplace into another high-demand retail category, though the near-term financial impact is likely limited. DoorDash starts selling video games but won’t drop them at your door
• Positive Sentiment: Autonomous delivery could improve long-term operating efficiency. DoorDash and Grubhub are taking delivery robots previously unwanted by Uber, and DoorDash’s robotics partnerships are expanding. Wider robot deployment could eventually reduce delivery costs and support higher order volumes, although the articles provide no timeline or quantified savings. Grubhub and DoorDash are taking the delivery robots Uber didn’t want
• Neutral Sentiment: Reports that DoorDash and Uber Eats will avoid raising prices after delivery-worker minimum wages were locked in may help preserve customer demand, but could constrain margins if labor costs rise. UberEats and DoorDash to avoid increasing prices
• Negative Sentiment: A wrongful-death lawsuit connected to a customer killed while picking up a DoorDash order creates some reputational and potential legal overhang, although the reported claims target the alleged shooter and Popeyes rather than clearly identifying DoorDash as a defendant. Mother of man killed while picking up DoorDash order sues Popeyes and alleged shooter

About DoorDash

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.