DoorDash (NASDAQ:DASH) Stock Price Down 6.1% – Here’s Why

Shares of DoorDash, Inc. (NASDAQ:DASH) fell 6.1% on Monday. The stock traded as low as $180.11 and last traded at $181.5680. Approximately 429,437 shares traded hands during mid-day trading, a decline of 91% from the average session volume of 4,661,319 shares. The stock had previously closed at $193.36.

DoorDash News Roundup

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 Analysts Forecast Growth

Several equities research analysts recently commented on the company. KeyCorp dropped their price objective on DoorDash from $280.00 to $275.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 14th. Scotiabank assumed coverage on shares of DoorDash in a research note on Wednesday, September 9th. They set a “sector outperform” rating and a $275.00 target price on the stock. Wedbush raised their price target on shares of DoorDash from $205.00 to $220.00 and gave the company a “neutral” rating in a report on Thursday, August 20th. Raymond James Financial reissued a “buy” rating on shares of DoorDash in a report on Thursday, September 3rd. Finally, Rosenblatt Securities assumed coverage on shares of DoorDash in a research report on Tuesday, September 1st. They set a “buy” rating and a $270.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $257.47.

DoorDash Stock Down 6.1%

The stock has a market cap of $78.65 billion, a PE ratio of 94.64 and a beta of 1.79. 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 company’s 50-day moving average price is $206.14 and its 200 day moving average price is $181.06.

DoorDash (NASDAQ:DASH) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.46 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.47 by ($0.01). The business had revenue of $4.45 billion during 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 quarterly revenue was up 35.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.65 EPS. As a group, analysts forecast that DoorDash, Inc. will post 2.51 EPS for the current fiscal year.

Insider Buying and Selling at DoorDash

In other news, CFO Ravi Inukonda sold 19,505 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $220.62, for a total transaction of $4,303,193.10. Following the completion of the sale, the chief financial officer owned 232,938 shares of the company’s stock, valued at $51,390,781.56. The trade was a 7.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Tony Xu sold 29,567 shares of the company’s stock in a transaction on 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 completion of the sale, the chief executive officer 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 396,155 shares of company stock worth $86,469,551. 44.90% of the stock is owned by insiders.

Hedge Funds Weigh In On DoorDash

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vise Technologies Inc. grew its stake in shares of DoorDash by 1.8% during the fourth quarter. Vise Technologies Inc. now owns 3,517 shares of the company’s stock worth $796,000 after acquiring an additional 63 shares during the last quarter. Washington Trust Advisors Inc. raised its position in shares of DoorDash by 81.0% in the 2nd quarter. Washington Trust Advisors Inc. now owns 143 shares of the company’s stock valued at $26,000 after purchasing an additional 64 shares during the last quarter. Premier Path Wealth Partners LLC raised its position in shares of DoorDash by 2.7% in the 2nd quarter. Premier Path Wealth Partners LLC now owns 2,520 shares of the company’s stock valued at $465,000 after purchasing an additional 67 shares during the last quarter. AXS Investments LLC boosted its stake in DoorDash by 1.3% in the 4th quarter. AXS Investments LLC now owns 5,438 shares of the company’s stock worth $1,232,000 after purchasing an additional 69 shares in the last quarter. Finally, Prestige Wealth Management Group LLC grew its position in DoorDash by 6.4% during the 4th quarter. Prestige Wealth Management Group LLC now owns 1,209 shares of the company’s stock worth $274,000 after purchasing an additional 73 shares during 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.