DoorDash (NASDAQ:DASH) Earns Buy Rating from Needham & Company LLC

DoorDash (NASDAQ:DASH)‘s stock had its “buy” rating reissued by research analysts at Needham & Company LLC in a note issued to investors on Thursday, Marketbeat Ratings reports. They currently have a $265.00 target price on the stock. Needham & Company LLC’s price target indicates a potential upside of 22.54% from the company’s previous close.

Other analysts have also issued reports about the company. Benchmark decreased their target price on DoorDash from $285.00 to $270.00 and set a “buy” rating for the company in a research report on Monday, August 3rd. DA Davidson cut their price target on DoorDash from $224.00 to $200.00 and set a “neutral” rating on the stock in a report on Thursday, May 7th. BTIG Research reduced their price objective on DoorDash from $280.00 to $225.00 and set a “buy” rating for the company in a research note on Friday, June 12th. Bank of America reissued a “buy” rating on shares of DoorDash in a research note on Thursday. Finally, Stifel Nicolaus decreased their price objective on DoorDash from $215.00 to $185.00 and set a “hold” rating for the company in a report on Monday, April 13th. Twenty-three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $253.50.

DoorDash Trading Up 1.4%

NASDAQ:DASH opened at $216.26 on Thursday. The company has a current ratio of 1.37, a quick ratio of 1.43 and a debt-to-equity ratio of 0.27. The stock has a market capitalization of $94.23 billion, a price-to-earnings ratio of 113.23 and a beta of 1.78. The firm has a fifty day simple moving average of $180.65 and a two-hundred day simple moving average of $174.77. DoorDash has a 12 month low of $143.30 and a 12 month high of $285.50.

DoorDash (NASDAQ:DASH) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.46 earnings per share for the quarter, missing the consensus estimate of $0.47 by ($0.01). DoorDash had a net margin of 5.29% and a return on equity of 8.48%. The company had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.34 billion. During the same quarter in the prior year, the company posted $0.65 EPS. DoorDash’s revenue for the quarter was up 35.6% on a year-over-year basis. Analysts expect that DoorDash will post 2.4 EPS for the current fiscal year.

Insider Activity at DoorDash

In related news, Director Andy Fang sold 5,000 shares of the company’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $180.00, for a total transaction of $900,000.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Prabir Adarkar sold 21,739 shares of the firm’s 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 transaction, the chief operating officer owned 959,076 shares in the company, valued at approximately $148,896,549. This trade represents a 2.22% 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 have sold 142,620 shares of company stock valued at $26,822,778 over the last 90 days. Corporate insiders own 5.28% of the company’s stock.

Hedge Funds Weigh In On DoorDash

Several hedge funds have recently modified their holdings of DASH. MV Capital Management Inc. bought a new position in shares of DoorDash in the fourth quarter valued at approximately $26,000. Swiss RE Ltd. bought a new stake in DoorDash during the fourth quarter worth $28,000. ST Germain D J Co. Inc. bought a new stake in DoorDash during the fourth quarter worth $29,000. Kemnay Advisory Services Inc. purchased a new position in DoorDash in the fourth quarter worth $32,000. Finally, Sunbelt Securities Inc. boosted its position in DoorDash by 124.1% in the third quarter. Sunbelt Securities Inc. now owns 121 shares of the company’s stock worth $33,000 after purchasing an additional 67 shares during the last quarter. Institutional investors own 90.64% of the company’s stock.

DoorDash News Summary

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: DoorDash’s second-quarter revenue increased 35.6% year over year to $4.45 billion, exceeding the $4.34 billion consensus estimate. Growth in orders, marketplaces, memberships and the Deliveroo acquisition supported the top-line beat. DoorDash Q2 Earnings Miss on Higher R&D Costs, Revenue Beat
• Positive Sentiment: Management issued stronger-than-expected third-quarter guidance, indicating that demand for food, grocery and convenience delivery remains resilient. The company also said improving growth and unit economics are helping fund investments in DashPass, merchant services, artificial intelligence and autonomous delivery. DoorDash Issues Strong Guidance as Delivery Demand Keeps Rising
• Positive Sentiment: DoorDash received FAA approval to operate commercial air-carrier services in Charlotte, clearing a regulatory hurdle for drone deliveries. The initiative could eventually improve delivery speed and economics, although its financial contribution is likely longer term. DoorDash Cleared for Takeoff with FAA Air Carrier Approval
• Positive Sentiment: Several analysts raised their price targets: Cantor Fitzgerald increased its target to $260 and maintained an overweight rating, while Needham reiterated a buy rating with a $265 target. Barclays also lifted its target to $230, though it retained an equal-weight rating. DoorDash Given New Price Target at Barclays
• Neutral Sentiment: DoorDash is positioning artificial intelligence as a growth and efficiency driver, but management said AI-generated traffic is still limited. Autonomous delivery robot deployment also faces practical challenges involving charging, loading and complex pickups. DoorDash Faces Challenges Scaling Its Dot Delivery Robot
• Negative Sentiment: Adjusted earnings of $0.46 per share fell short of expectations and declined from $0.65 a year earlier. Higher research-and-development spending is pressuring near-term profitability as DoorDash invests in technology and expansion. DoorDash Q2 Earnings Miss Estimates
• Negative Sentiment: Director Stanley Tang sold 67,693 shares worth approximately $13.6 million under a pre-arranged Rule 10b5-1 plan. While scheduled insider sales do not necessarily signal deteriorating fundamentals, the transaction reduced his position by roughly 63%. Stanley Tang Sells DoorDash Shares

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.