DoorDash Sees Unusually High Options Volume (NASDAQ:DASH)

DoorDash, Inc. (NASDAQ:DASH) was the recipient of unusually large options trading activity on Monday. Stock traders acquired 14,194 call options on the stock. This represents an increase of approximately 37% compared to the typical daily volume of 10,376 call options.

Key DoorDash News

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

DASH has been the topic of a number of recent research reports. Needham & Company LLC restated a “buy” rating and issued a $265.00 target price on shares of DoorDash in a report on Thursday, August 6th. Citigroup reissued a “market outperform” rating on shares of DoorDash in a research report on Monday, August 24th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of DoorDash in a report on Friday, August 7th. Susquehanna upped their target price on shares of DoorDash from $225.00 to $250.00 and gave the stock a “positive” rating in a research note on Friday, August 7th. Finally, Wells Fargo & Company increased their target price on shares of DoorDash from $199.00 to $225.00 and gave the company an “equal weight” rating in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $257.47.

Insider Buying and Selling at DoorDash

In related news, CEO Tony Xu sold 29,567 shares of the firm’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $230.00, for a total value of $6,800,410.00. Following the transaction, the chief executive officer owned 1,500 shares of the company’s stock, valued at approximately $345,000. This trade represents a 95.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stanley Tang sold 72,367 shares of DoorDash stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $225.16, for a total value of $16,294,153.72. Following the transaction, the director owned 10,361 shares of the company’s stock, valued at $2,332,882.76. This trade represents a 87.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 396,155 shares of company stock valued at $86,469,551 over the last ninety days. 44.90% of the stock is currently owned by corporate insiders.

Institutional Trading of DoorDash

Institutional investors have recently modified their holdings of the business. SC US Ttgp LTD. boosted its holdings in shares of DoorDash by 1.6% in the fourth quarter. SC US Ttgp LTD. now owns 31,686,624 shares of the company’s stock worth $7,176,387,000 after acquiring an additional 506,358 shares during the period. Janus Henderson Group PLC lifted its holdings in DoorDash by 8.4% during the 4th quarter. Janus Henderson Group PLC now owns 5,536,599 shares of the company’s stock worth $1,247,961,000 after purchasing an additional 427,031 shares in the last quarter. Norges Bank bought a new position in DoorDash in the 4th quarter worth about $1,093,650,000. Sands Capital Management LLC boosted its stake in DoorDash by 11.8% in the 4th quarter. Sands Capital Management LLC now owns 4,496,607 shares of the company’s stock worth $1,018,392,000 after purchasing an additional 473,316 shares during the period. Finally, Bank of New York Mellon Corp grew its holdings in DoorDash by 10.3% during the 4th quarter. Bank of New York Mellon Corp now owns 2,389,808 shares of the company’s stock valued at $541,244,000 after buying an additional 223,926 shares in the last quarter. 90.64% of the stock is currently owned by hedge funds and other institutional investors.

DoorDash Stock Performance

DASH stock traded down $11.63 during midday trading on Monday, hitting $181.73. The company’s stock had a trading volume of 3,248,669 shares, compared to its average volume of 4,675,776. The stock has a market cap of $78.74 billion, a price-to-earnings ratio of 95.30 and a beta of 1.79. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.27. The stock’s 50-day moving average price is $206.14 and its 200 day moving average price is $181.06. DoorDash has a 1 year low of $143.30 and a 1 year high of $285.50.

DoorDash (NASDAQ:DASH) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.47 by ($0.01). The company had revenue of $4.45 billion for 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 company’s revenue for the quarter was up 35.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.65 EPS. On average, equities analysts forecast that DoorDash will post 2.51 EPS for the current year.

About DoorDash

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.