Cullen Frost Bankers Inc. significantly increased its stake in DoorDash, Inc. (NASDAQ: DASH) by an impressive 688.5% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the institutional investor acquired an additional 358 shares, bringing its total holdings to 410 shares, valued at approximately $101,000.
This sharp increase in investment comes as other hedge funds also adjusted their positions in DoorDash. The Saudi Central Bank entered the scene with a new stake worth $25,000 in the first quarter, while WPG Advisers LLC and Pacific Center for Financial Services also acquired new stakes valued at $26,000 and $27,000, respectively. GFG Capital LLC followed suit, investing $30,000 in the second quarter. Additionally, Harbour Investments Inc. raised its holdings by 55.6%, now owning 196 shares valued at $36,000.
As of now, institutional investors and hedge funds own approximately 90.64% of DoorDash’s stock.
Analyst Ratings and Market Performance
DoorDash has attracted attention from various analysts, with several rating changes reflecting its performance and potential. On July 21st, Sanford C. Bernstein raised its price target on DoorDash shares from $210.00 to $265.00, awarding the company an “outperform” rating. In contrast, Wells Fargo & Company adjusted its price target downward from $306.00 to $301.00, maintaining an “equal weight” rating.
Several other firms have also provided updated ratings. Raymond James Financial reaffirmed a “strong-buy” rating with a target price increase to $325.00, while DA Davidson raised its target from $190.00 to $260.00 with a “neutral” rating. Zacks Research recently upgraded DoorDash from a “hold” to a “strong-buy” rating.
Overall, the stock has received strong endorsements, with four analysts rating it as a “strong buy,” twenty-one giving it a “buy” rating, and twelve issuing a “hold” rating. According to MarketBeat, DoorDash holds a consensus rating of “Moderate Buy” with an average price target of $287.79.
Recent Trading Activity and Financial Performance
DoorDash shares opened at $258.15 on Friday, showing a 1.4% increase. The stock has experienced a year range between a low of $152.26 and a high of $285.50. The company’s market capitalization stands at $110.28 billion, with a P/E ratio of 143.42 and a beta of 1.71.
In its latest quarterly earnings report, released on August 6th, DoorDash reported earnings per share (EPS) of $0.65, exceeding the consensus estimate of $0.42 by $0.23. The company achieved a revenue of $3.28 billion, surpassing the expected $3.16 billion, which reflects a year-over-year revenue increase of 24.9%. Analysts forecast an EPS of $2.22 for the current year.
In terms of insider transactions, Chief Operating Officer Prabir Adarkar sold 41,881 shares on August 25th at an average price of $245.82, totaling approximately $10.3 million. Following the transaction, Adarkar retained 914,547 shares valued at around $224.8 million. Furthermore, CEO Tony Xu sold 291,403 shares on August 20th, realizing about $69.4 million from the sale.
Over the past 90 days, insiders have sold a total of 932,156 shares, valued at approximately $233.6 million. Company insiders currently own 5.83% of DoorDash’s stock.
DoorDash, Inc. operates a commerce platform connecting merchants, consumers, and independent contractors. Its services include customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support, with operations spanning both the United States and international markets.
