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

DoorDash (NASDAQ:DASH) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Monday,Zacks.com reports.

A number of other equities analysts have also commented on DASH. Needham & Company LLC lowered their price objective on DoorDash from $275.00 to $265.00 and set a “buy” rating on the stock in a research note on Thursday, February 19th. Benchmark raised their price objective on DoorDash from $280.00 to $285.00 and gave the stock a “buy” rating in a research note on Thursday, February 19th. Roth Mkm restated a “neutral” rating and set a $200.00 price objective on shares of DoorDash in a research note on Thursday, February 19th. Piper Sandler reiterated a “neutral” rating and issued a $220.00 price target (down from $230.00) on shares of DoorDash in a research note on Thursday, February 19th. Finally, Guggenheim decreased their price target on DoorDash from $275.00 to $255.00 and set a “buy” rating on the stock in a research note on Thursday, February 19th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $260.88.

DoorDash Stock Performance

NASDAQ:DASH opened at $163.55 on Monday. The stock has a market cap of $71.05 billion, a P/E ratio of 77.15 and a beta of 1.93. The stock has a 50 day simple moving average of $166.36 and a 200 day simple moving average of $207.14. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.27. DoorDash has a 1-year low of $143.30 and a 1-year high of $285.50.

DoorDash (NASDAQ:DASH) last released its quarterly earnings results on Wednesday, February 18th. The company reported $0.48 earnings per share for the quarter, missing the consensus estimate of $0.58 by ($0.10). DoorDash had a return on equity of 10.15% and a net margin of 6.82%.The firm had revenue of $3.96 billion for the quarter, compared to analyst estimates of $3.98 billion. During the same period in the previous year, the business posted $0.33 earnings per share. The business’s revenue for the quarter was up 37.7% on a year-over-year basis. Research analysts anticipate that DoorDash will post 2.22 earnings per share for the current year.

Insider Activity

In related news, Director Shona L. Brown sold 1,250 shares of the business’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $176.61, for a total transaction of $220,762.50. Following the sale, the director owned 31,002 shares in the company, valued at $5,475,263.22. The trade was a 3.88% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Stanley Tang sold 45,410 shares of the business’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $209.01, for a total value of $9,491,144.10. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 94,406 shares of company stock worth $17,825,074. Insiders own 5.83% of the company’s stock.

Institutional Investors Weigh In On DoorDash

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Resonant Capital Advisors LLC grew its position 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 acquiring an additional 42 shares during the last quarter. Premier Path Wealth Partners LLC grew its position 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 acquiring an additional 45 shares during the last quarter. Quotient Wealth Partners LLC grew its position 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 acquiring an additional 48 shares during the last quarter. Callan Family Office LLC grew its position 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 acquiring an additional 51 shares during the last quarter. Finally, Keel Point LLC grew its position 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 acquiring an additional 58 shares during the last quarter. Institutional investors own 90.64% of the company’s stock.

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.