Allstate Corp has made a significant investment in DoorDash, Inc., acquiring a new stake in the food delivery company during the third quarter of 2023. The institutional investor purchased 13,486 shares of DoorDash stock, valued at approximately $3,668,000, according to Holdings Channel.com. This move reflects broader activity in the market, as several other institutional investors have also been buying and selling shares of DoorDash recently.
In the second quarter of 2023, Norges Bank entered a sizable position in DoorDash worth roughly $1.19 billion. Meanwhile, Vanguard Group Inc. increased its stake by 4.6%, acquiring an additional 1,792,799 shares, bringing its total holdings to 41,190,085 shares valued at about $10.15 billion. Other notable investors include Scge Management L.P., which acquired a new position valued at $267.46 million, and Ninety One UK Ltd, which bought shares worth $259.15 million during the same period. Institutional investors, including hedge funds, now own approximately 90.64% of DoorDash’s stock.
Analysts Adjust Ratings and Price Targets
Recent adjustments from equity analysts further illustrate the fluctuating confidence in DoorDash’s stock. On November 7, 2023, Susquehanna lowered its target price from $300.00 to $250.00 while maintaining a “positive” rating. Conversely, Morgan Stanley increased its price target from $300.00 to $330.00, rating the stock as “overweight.” Other firms have offered a range of ratings, with two analysts assigning a “Strong Buy,” twenty-six rating the stock as a “Buy,” nine as “Hold,” and one as “Sell.” The consensus target price currently stands at $278.05.
As of January 2, 2024, DoorDash stock opened at $205.32. The company boasts a market capitalization of $88.49 billion and a price-to-earnings ratio of 104.22. Over the past twelve months, the stock has reached a low of $155.40 and a high of $285.50.
Recent Performance and Insider Activity
DoorDash reported its latest earnings results on November 5, 2023, revealing an earnings per share (EPS) of $0.55, which fell short of the consensus estimate of $0.68. Despite this, the company achieved a revenue of $3.45 billion for the quarter, exceeding the forecast of $3.35 billion, and marking a year-over-year revenue increase of 27.3%. Analysts project that DoorDash will post an EPS of $2.22 for the current fiscal year.
In insider trading news, CEO Tony Xu sold 16,667 shares on January 5, 2024, at an average price of $230.00, totaling approximately $3.83 million. This sale reduced his ownership substantially, leaving him with 1,500 shares valued at around $345,000. Additionally, Director Andy Fang sold 30,000 shares on January 2, 2024, for about $6.68 million.
Over the last three months, insiders have sold a total of 617,885 shares, valued at approximately $130.15 million. Currently, corporate insiders hold about 5.83% of DoorDash’s stock.
DoorDash operates a technology-driven logistics and food-delivery marketplace that connects consumers, merchants, and independent delivery contractors, known as “Dashers.” The service has expanded beyond restaurant deliveries to offer groceries and other retail items, positioning DoorDash as a comprehensive on-demand logistics provider.
