Allstate Corp has acquired a new stake in DoorDash, Inc. during the third quarter of 2023. According to Holdings Channel, this institutional investor purchased 13,486 shares valued at approximately $3.67 million. This move reflects a growing interest among institutional investors in DoorDash, as evidenced by several other high-profile purchases of the company’s stock.
Notably, Norges Bank acquired a significant position in DoorDash during the second quarter, investing around $1.19 billion. Vanguard Group Inc. also increased its stake by 4.6% during the same period, now holding 41,190,085 shares valued at approximately $10.15 billion after acquiring an additional 1,792,799 shares. Further highlighting this trend, Scge Management L.P. purchased shares worth $267.46 million, while Ninety One UK Ltd bought a stake valued at $259.15 million in the third quarter. AQR Capital Management LLC expanded its holdings by 43.5%, now owning 2,633,971 shares valued at around $643.08 million. Altogether, institutional investors and hedge funds control 90.64% of DoorDash’s stock.
Analysts have been assessing DoorDash’s performance and prospects. On November 7, 2023, Susquehanna reduced its target price from $300.00 to $250.00 while maintaining a “positive” rating. In contrast, Morgan Stanley raised its target price from $300.00 to $330.00, assigning an “overweight” rating. DA Davidson reaffirmed a “neutral” rating with a target price of $260.00, and Argus lowered its price target to $260.00 while maintaining a “buy” rating. Cantor Fitzgerald raised its price objective from $270.00 to $285.00. Currently, two analysts rate the stock as a Strong Buy, twenty-six as Buy, nine as Hold, and one as Sell. The average rating stands at “Moderate Buy,” with a consensus target price of $278.05.
DoorDash shares experienced a 2.3% decline, opening at $205.32. The company boasts a market capitalization of $88.49 billion and a price-to-earnings (P/E) ratio of 104.22. Over the past year, shares reached a low of $155.40 and a high of $285.50. The fifty-day moving average is $216.53, while the 200-day average is $240.15. DoorDash maintains a quick ratio and current ratio of 2.04 and a debt-to-equity ratio of 0.29.
On November 5, 2023, DoorDash reported earnings that fell short of expectations, revealing an earnings per share (EPS) of $0.55, below the consensus estimate of $0.68. Despite this, the company reported a revenue of $3.45 billion, exceeding the expected $3.35 billion, marking a year-over-year increase of 27.3%.
In insider trading news, CEO Tony Xu sold 16,667 shares on January 5, 2024, at an average price of $230.00, totaling $3.83 million. Following this transaction, Xu holds 1,500 shares valued at approximately $345,000. Meanwhile, Director Andy Fang sold 30,000 shares on January 2, 2024, for a total of $6.68 million. In total, insiders sold 617,885 shares worth approximately $130.15 million in the last three months, with insiders holding 5.83% of the company’s stock.
DoorDash, Inc. operates a technology-driven logistics and food delivery marketplace that connects consumers, merchants, and independent delivery contractors. The service allows customers to order from local restaurants and retailers through its app and website, while DoorDash manages last-mile fulfillment via its network of drivers, known as “Dashers.” The platform has expanded beyond restaurant deliveries to include groceries, convenience items, and retail deliveries, positioning DoorDash as a comprehensive on-demand logistics provider for consumer goods.
