SAN FRANCISCO—DoorDash, Inc. (NYSE:NASDAQ:DASH) President and COO Prabir Adarkar recently reported a series of stock transactions, according to an SEC filing dated November 25, 2024. The transactions included the sale of shares valued at approximately $6.69 million.
Adarkar sold a total of 38,974 shares of DoorDash's Class A Common Stock, with prices ranging from $174.533 to $178.57 per share. Following these sales, Adarkar retains ownership of 925,222 shares.
Additionally, Adarkar exercised stock options to acquire 20,000 shares at a price of $7.16 per share, adding to his holdings.
These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid any concerns about insider trading.
"In other recent news, DoorDash has reported significant growth in earnings and revenue, particularly in the third quarter where user growth and order frequency reached record levels. This increase is attributed to the addition of new verticals such as grocery services. Analysts from Citi, Mizuho (NYSE:MFG) Securities, BofA Securities, Loop Capital, DA Davidson, and Oppenheimer have all raised their price targets for DoorDash, citing consistent improvements in the company's quality, selection, and marketplace efficiency.
The firm's expansion into new areas, such as grocery delivery, has been a key driver of its success. DoorDash's profitability and free cash flow are on an upward trajectory, with the company achieving positive GAAP operating income in the third quarter. Analysts expect these trends to continue into 2025, with the platform becoming more ingrained in users' habits as it continues to broaden its offerings.
DoorDash has also announced a partnership with Lyft (NASDAQ:LYFT) to enhance the value proposition of its subscription service, DashPass. The collaboration will provide discounted Lyft rides and free upgrades to DashPass members. Additionally, 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
DoorDash's recent stock performance aligns with the insider transactions reported by President and COO Prabir Adarkar. According to InvestingPro data, DoorDash has seen impressive price returns, with a 90.54% total return over the past year and an 81.02% return year-to-date. The stock is currently trading near its 52-week high, with a price that's 98.23% of its peak.
These strong returns are supported by the company's robust revenue growth. InvestingPro data shows that DoorDash's revenue grew by 24.56% over the last twelve months, reaching $10.15 billion. This growth trend is expected to continue, as one of the InvestingPro Tips indicates that analysts anticipate sales growth in the current year.
Despite the positive revenue trajectory, it's worth noting that DoorDash is not yet profitable over the last twelve months. However, another InvestingPro Tip suggests that net income is expected to grow this year, which could signal a potential turnaround in profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for DoorDash, providing a deeper understanding of the company's financial health and market position.
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