Cullen Frost Bankers Inc. significantly increased its stake in DoorDash, Inc. (NASDAQ:DASH), boosting its holdings by an impressive 688.5% during the second quarter of 2023. This information comes from the bank’s recent filing with the Securities and Exchange Commission. Following the acquisition of an additional 358 shares, Cullen Frost now owns 410 shares of DoorDash, valued at approximately $101,000.
Other institutional investors have also been active in their investments in DoorDash. The Saudi Central Bank acquired a new stake valued at $25,000 in the first quarter. Similarly, WPG Advisers LLC and Pacific Center for Financial Services entered with stakes worth $26,000 and $27,000, respectively. Additionally, GFG Capital LLC bought shares valued at $30,000, while Harbour Investments Inc. increased its holdings by 55.6%, now owning 196 shares valued at $36,000. Overall, institutional investors and hedge funds control approximately 90.64% of DoorDash’s stock.
Analysts Weigh In on DoorDash Stock
DoorDash has seen considerable interest from analysts, resulting in varied ratings and price objectives. Notably, Sanford C. Bernstein raised its price target on DoorDash shares from $210.00 to $265.00 with an “outperform” rating issued on July 21, 2023. Conversely, Wells Fargo & Company adjusted its price target from $306.00 to $301.00, maintaining an “equal weight” rating as of October 3, 2023.
In a more optimistic outlook, Raymond James Financial reaffirmed a “strong-buy” rating and increased its target price from $275.00 to $325.00. Similarly, DA Davidson raised its target from $190.00 to $260.00, assigning a “neutral” rating. Meanwhile, Zacks Research upgraded its rating from “hold” to “strong-buy” on October 13, 2023. Currently, four analysts classify the stock as a Strong Buy, while twenty-one suggest a Buy rating, and twelve recommend holding the stock.
According to MarketBeat, the consensus rating for DoorDash stock is “Moderate Buy,” with an average price target of $287.79.
DoorDash Stock Performance and Financials
On Friday, October 6, 2023, DoorDash shares opened at $258.15. The stock has experienced a year of volatility, with a low of $152.26 and a high of $285.50. DoorDash maintains a market capitalization of $110.28 billion, a debt-to-equity ratio of 0.30, and a P/E ratio of 143.42. The company’s fifty-day moving average stands at $259.75, while its two-hundred day moving average is $233.03.
In its most recent quarterly earnings report, issued on August 6, 2023, DoorDash reported earnings per share (EPS) of $0.65, surpassing the consensus estimate of $0.42 by $0.23. The company achieved a net margin of 6.57% and a return on equity of 9.56%. DoorDash’s revenue for the quarter reached $3.28 billion, exceeding expectations of $3.16 billion. This marks a year-over-year revenue increase of 24.9%. Analysts predict that DoorDash will report an EPS of $2.22 for the current fiscal year.
Insider Transactions Highlight Activity
Recent insider trading at DoorDash has also drawn attention. On August 25, 2023, Chief Operating Officer Prabir Adarkar sold 41,881 shares at an average price of $245.82, totaling approximately $10.3 million. Following this transaction, Adarkar holds 914,547 shares valued at around $224.8 million, reflecting a 4.38% decrease in ownership.
In a significant transaction, Chief Executive Officer Tony Xu sold 291,403 shares on August 20, 2023, at an average price of $238.19, amounting to about $69.4 million. Post-sale, Xu retains 229,047 shares, valued at approximately $54.6 million, indicating a decrease of 55.99% in ownership. Over the last ninety days, insiders sold a total of 932,156 shares worth $233.6 million, with insiders now holding 5.83% of the company’s stock.
DoorDash, Inc. operates a commerce platform that connects merchants, consumers, and independent contractors, offering services such as customer acquisition, demand generation, order fulfillment, and payment processing. As the company continues to evolve in the competitive food delivery landscape, its financial performance and strategic investments remain areas of keen interest for investors and analysts alike.
