DoorDash Target of Unusually Large Options Trading (NASDAQ:DASH)
by Michael Walen · The Markets DailyDoorDash, Inc. (NASDAQ:DASH – Get Free Report) saw some unusual options trading activity on Tuesday. Stock traders bought 42,347 call options on the company. This represents an increase of 140% compared to the typical volume of 17,619 call options.
DoorDash Stock Up 1.2%
NASDAQ:DASH traded up $2.03 on Tuesday, reaching $169.81. 2,944,420 shares of the stock traded hands, compared to its average volume of 5,176,851. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.27. The company has a market capitalization of $73.77 billion, a price-to-earnings ratio of 80.10 and a beta of 1.82. DoorDash has a 12 month low of $155.40 and a 12 month high of $285.50. The company’s fifty day simple moving average is $189.51 and its 200 day simple moving average is $221.99.
DoorDash (NASDAQ:DASH – Get Free Report) last posted its quarterly earnings results on Wednesday, February 18th. The company reported $0.48 EPS for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.10). The firm had revenue of $3.96 billion for the quarter, compared to analysts’ expectations of $3.98 billion. DoorDash had a net margin of 6.82% and a return on equity of 10.15%. The company’s quarterly revenue was up 37.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.33 EPS. Equities analysts predict that DoorDash will post 2.22 EPS for the current fiscal year.
Insider Activity at DoorDash
In related news, COO Prabir Adarkar sold 30,000 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $234.57, for a total transaction of $7,037,100.00. Following the sale, the chief operating officer owned 874,130 shares of the company’s stock, valued at approximately $205,044,674.10. This represents a 3.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Tony Xu sold 16,667 shares of the stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $230.00, for a total transaction of $3,833,410.00. Following the completion of the sale, the chief executive officer owned 1,500 shares in the company, valued at $345,000. This represents a 91.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 205,409 shares of company stock valued at $45,332,298 in the last quarter. 5.83% of the stock is currently owned by company insiders.
Institutional Trading of DoorDash
A number of institutional investors and hedge funds have recently modified their holdings of DASH. Rockefeller Capital Management L.P. lifted its holdings in shares of DoorDash by 85.8% during the fourth quarter. Rockefeller Capital Management L.P. now owns 45,958 shares of the company’s stock valued at $10,409,000 after purchasing an additional 21,221 shares in the last quarter. Osbon Capital Management LLC bought a new stake in DoorDash in the 4th quarter worth about $209,000. World Investment Advisors increased its holdings in DoorDash by 6.2% in the 4th quarter. World Investment Advisors now owns 4,175 shares of the company’s stock worth $946,000 after buying an additional 243 shares in the last quarter. Sentinel Dome Partners LLC purchased a new position in DoorDash in the 4th quarter worth about $3,103,000. Finally, Rehmann Capital Advisory Group raised its position in DoorDash by 8.0% in the 4th quarter. Rehmann Capital Advisory Group now owns 1,107 shares of the company’s stock worth $251,000 after buying an additional 82 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: Unusually large call options flow — investors bought roughly 42,347 call contracts (about a 140% jump vs. normal volume), signaling speculative bullish positioning and short-term demand for upside in DASH. This kind of activity can push shares higher as traders adjust exposure.
- Positive Sentiment: Strong positive publicity around a 78‑year‑old DoorDash driver who received massive tips and widespread crowdfunding after a viral doorbell video — boosts brand goodwill and public sentiment toward Dashers, which can help consumer perception and retention. 78-year-old DoorDash driver gets massive tip from thousands of strangers after viral doorbell video
- Neutral Sentiment: Marketing/data story — DoorDash published Easter consumption trends that got media pickup. These data-driven features support engagement and merchant/advertising opportunities but are unlikely to move fundamentals alone. Hatching trends: How America is celebrating Easter, according to DoorDash data
- Negative Sentiment: $16M settlement coverage — reporting on a $16 million DoorDash settlement highlights legal/financial liabilities and potential future class-action exposure; such items can cap upside until resolved. $16M DoorDash settlement: Who is eligible and when you could get payout
- Negative Sentiment: Trademark loss — an Oklahoma therapist won a trademark dispute against DoorDash, pointing to brand/legal setbacks that can create incremental costs and distraction for management. Oklahoma Therapist Wins Trademark Battle Against DoorDash
- Negative Sentiment: Driver-found death coverage — multiple outlets reported that a DoorDash driver discovered a decomposing body while on delivery; while mainly a human-interest/crime story, it raises safety and liability concerns for gig workers and could attract regulatory scrutiny. Decomposing Body Found Inside Closet After DoorDash Driver Smelled Foul Odor During Delivery
Analyst Ratings Changes
DASH has been the subject of several research analyst reports. Needham & Company LLC dropped their price objective on DoorDash from $275.00 to $265.00 and set a “buy” rating for the company in a research note on Thursday, February 19th. BMO Capital Markets restated an “outperform” rating on shares of DoorDash in a research note on Friday, December 12th. Sanford C. Bernstein dropped their price target on DoorDash from $285.00 to $270.00 and set an “outperform” rating for the company in a research report on Thursday, February 19th. Mizuho cut their price objective on DoorDash from $320.00 to $255.00 and set an “outperform” rating for the company in a report on Tuesday, March 3rd. Finally, BNP Paribas Exane initiated coverage on shares of DoorDash in a research report on Wednesday, January 14th. They issued an “outperform” rating and a $280.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, DoorDash currently has an average rating of “Moderate Buy” and an average target price of $262.82.
Read Our Latest Report on DoorDash
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.