SAN FRANCISCO—Yandell Keith, the Chief Business Officer of DoorDash Inc. (NYSE:NASDAQ:DASH), has recently sold shares of the company's Class A common stock, according to a filing with the Securities and Exchange Commission. The transactions, which took place on November 22, involved the sale of 5,509 shares.
The sales were executed at prices ranging from $174.303 to $177.161 per share, accumulating a total value of approximately $970,906. Following these transactions, Keith holds a total of 118,712 shares of DoorDash.
The sales were conducted under a Rule 10b5-1 trading plan, which allows company insiders to sell a predetermined number of shares at a set time, offering an affirmative defense against accusations of insider trading.
In other recent news, DoorDash's financial performance and strategic moves have been the subject of several analyst upgrades. Mizuho (NYSE:MFG) Securities raised the company's price target to $200, citing the potential for Gross Order Value (GOV) growth as a key profitability indicator. The firm also expects DoorDash's take-rate to significantly drive profitability by 2025. BofA Securities, Loop Capital, DA Davidson, and Oppenheimer also increased their price targets, attributing their decisions to the company's strong Q3 results, international expansion, and a promising partnership with Lyft (NASDAQ:LYFT).
DoorDash reported a 19% increase in GOV for Q3, with revenue growth outpacing GOV growth primarily due to advertising and efficient Dasher costs. The company's international business is now gross profit positive, demonstrating improved contribution margins similar to those in the U.S.
The food delivery giant has also made strategic moves to enhance its market share. A partnership with Lyft aims to boost the value of its DashPass subscription service. Moreover, DoorDash's acquisition of Tazz by Wolt marks a significant step in expanding its market share in Europe. These recent developments underscore DoorDash's commitment to growth and operational efficiency.
InvestingPro Insights
As DoorDash's Chief Business Officer executes a planned sale of shares, it's worth examining the company's current financial position and market performance. According to InvestingPro data, DoorDash boasts a substantial market capitalization of $74.33 billion, reflecting its significant presence in the food delivery sector.
The company's revenue growth remains robust, with a 24.56% increase over the last twelve months as of Q3 2024, reaching $10.15 billion. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year, suggesting continued expansion for DoorDash.
Investors should note that DoorDash's stock has shown remarkable performance, with a 90.92% price total return over the past year. The stock is currently trading near its 52-week high, with its price at 98.77% of the peak. This strong momentum is further emphasized by an InvestingPro Tip highlighting the stock's high return over the last year.
While these metrics paint a picture of growth and market enthusiasm, it's important to consider that DoorDash is not yet profitable over the last twelve months, as pointed out by another InvestingPro Tip. The company's P/E ratio stands at -423.84, indicating that investors are betting on future profitability rather than current earnings.
For those interested in a deeper analysis, InvestingPro offers 17 additional tips for DoorDash, providing a more comprehensive view of the company's financial health and market position.
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