Taking on analysts’ expectations and winning: DoorDash Inc. (DASH)

DoorDash Inc. (NYSE: DASH) stock jumped 0.76% on Thursday to $66.50 against a previous-day closing price of $66.00. With 2.76 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.79 million shares. During the session, the Internet Content & Information company that operates in wider Communication Services sector, reached to the highest price of $67.42 whereas the lowest price it dropped to was $65.76. The 52-week range on DASH shows that it touched its highest point at $87.00 and its lowest point at $41.37 during that stretch. It currently has a 1-year price target of $78.06.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DASH was down-trending over the past week, with a drop of -0.70%, but this was up by 15.65% over a month. Three-month performance surged to 20.71% while six-month performance rose 23.26%. The stock gained 6.13% in the past year, while it has gained 36.21% so far this year. A look at the trailing 12-month EPS for DASH yields -3.56 with Next year EPS estimates of -1.02. For the next quarter, that number is -0.42. This implies an EPS growth rate of -164.50% for this year and 41.00% for next year.

Float and Shares Shorts:

At present, 390.40 million DASH shares are outstanding with a float of 357.94 million shares on hand for trading. On May 14, 2023, short shares totaled 18.33 million, which was 4.72% higher than short shares on Apr 13, 2023. In addition to Mr. Tony Xu as the firm’s Co-Founder, CEO & Chair, Mr. Prabir Adarkar serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 91.25% of DASH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 30.30% of DASH, in contrast to 28.73% held by mutual funds. Shares owned by individuals account for 27.39%. As the largest shareholder in DASH with 7.97% of the stake, Morgan Stanley Investment Managem holds 28,992,014 shares worth 28,992,014. A second-largest stockholder of DASH, The Vanguard Group, Inc., holds 25,352,924 shares, controlling over 6.97% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in DASH, holding 17,654,614 shares or 4.85% stake. With a 3.95% stake in DASH, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 14,381,650 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.46% of DASH stock, is the second-largest Mutual Fund holder. It holds 8,957,457 shares valued at 548.11 million. Vanguard Mid Cap Index Fund holds 1.85% of the stake in DASH, owning 6,725,136 shares worth 411.51 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, DASH reported revenue of $1.61B and operating income of -$273.00M. The EBITDA in the recently reported quarter was -$190.00M and diluted EPS was -$0.72.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DASH since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DASH analysts setting a high price target of $105.00 and a low target of $40.00, the average target price over the next 12 months is $77.62. Based on these targets, DASH could surge 57.89% to reach the target high and fall by -39.85% to reach the target low. Reaching the average price target will result in a growth of 16.72% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded DASH stock several times over the past three months with 26 Buys and 92 Sells. In these transactions, 29,655,550 shares were bought while 35,406,243 shares were sold. The number of buy transactions has increased to 47 while that of sell transactions has risen to 194 over the past year. The total number of shares bought during that period was 30,304,818 while 36,400,854 shares were sold.

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