DoorDash, Inc. (NYSE:NASDAQ:DASH) CEO Tony Xu recently sold a substantial amount of company stock, according to a new SEC filing. Xu, who also serves as a director and a ten percent owner of the company, engaged in multiple transactions that resulted in the sale of DoorDash shares worth over $14 million.
The transactions, which took place on June 10, 2024, included the sale of 3,738 shares at a weighted average price of $109.829, with prices ranging from $109.22 to $110.19. Additionally, Xu sold 33,983 shares at an average of $110.768 per share, with a price range of $110.22 to $111.21. Another batch of 63,439 shares was sold at an average price of $111.731, with individual prices between $111.23 and $112.2275. Finally, 30,430 shares were sold at a weighted average price of $112.519, with the price range spanning from $112.23 to $113.19.
In total, these sales amounted to $14,686,825, highlighting a significant transaction by the CEO of the popular food delivery platform. The sales were conducted under a Rule 10b5-1 trading plan, which was adopted on December 2, 2022, indicating that the transactions were pre-planned and not based on any immediate knowledge of internal company matters.
On the same day, Xu also exercised an option to purchase 131,590 shares of Class A common stock at a price of $0.2 per share, as part of the same trading plan and in advance of the option's expiration date of June 25, 2024. This option exercise was separate from the sales and totaled $26,318.
After the reported transactions, Tony Xu's ownership in DoorDash stock has been reduced to zero, as indicated in the filing. This move by the CEO of DoorDash will likely be of interest to investors and market watchers, as executive trades can sometimes provide insights into their perspective on the company's future prospects.
In other recent news, Dada Nexus reported a revenue shortfall for the first quarter ended March 31, 2024, with revenue of RMB2.45 billion falling short of the analyst consensus of RMB2.68 billion. Despite the revenue miss, Dada Nexus reported an adjusted net loss per share of -RMB0.18, which was an improvement over analyst expectations of a -RMB0.62 loss per share. In other developments, the Massachusetts Supreme Judicial Court is considering ballot measures that could redefine the employment status of app-based drivers for companies like Uber (NYSE:UBER), Lyft (NASDAQ:LYFT), Instacart (NASDAQ:CART), and DoorDash.
In the latest analyst notes, BMO Capital adjusted its outlook on DoorDash Inc., reducing its price target to $127 from the previous $138 due to concerns about lower-than-expected EBITDA margins for the second quarter of 2024. Similarly, Benchmark lowered its price target on DoorDash to $150 from the previous $165, while RBC Capital reduced its price target to $165 from the previous $175. All three firms maintained positive ratings on DoorDash's stock, signaling confidence in the company's long-term growth prospects despite near-term challenges.
These are just some of the recent developments in the business world, highlighting the dynamic nature of the market and the various factors that can influence company performance and investor sentiment.
InvestingPro Insights
As DoorDash's CEO Tony Xu makes headlines with his recent stock transactions, investors are closely monitoring the company's financial health and market performance. According to InvestingPro insights, DoorDash holds a market capitalization of approximately $46.21 billion, signaling a substantial presence in the food delivery industry. Despite a negative P/E ratio of -104.18, reflecting challenges in current profitability, the company's revenue has shown impressive growth, with an increase of 27.24% over the last twelve months as of Q1 2024.
Notably, DoorDash's stock price has experienced significant volatility, with a 1-year price total return of 56.38%, suggesting that investors have seen high returns over the past year. This aligns with one of the InvestingPro Tips, which highlights the stock's volatility and strong performance over the last year. Additionally, analysts predict a brighter financial future for DoorDash, expecting the company to become profitable this year, which could influence investor sentiment and stock valuation.
For investors seeking a deeper analysis of DoorDash and personalized investment tips, InvestingPro offers a comprehensive suite of tools and insights. Currently, there are 9 additional InvestingPro Tips available for DoorDash, which can be accessed at InvestingPro DoorDash. To enhance your investment strategy, use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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