Cullen Frost Bankers Inc. has significantly increased its investment in DoorDash, Inc., boosting its holdings by an impressive 688.5% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the institutional investor now owns 410 shares of DoorDash, having purchased an additional 358 shares during the quarter. As of the latest report, Cullen Frost’s stake in DoorDash is valued at approximately $101,000.
This move comes amid a broader trend, with several other hedge funds also adjusting their positions in DoorDash. Among them, the Saudi Central Bank entered the market with a new stake worth $25,000, while WPG Advisers LLC and Pacific Center for Financial Services invested $26,000 and $27,000, respectively, during the first quarter. Additionally, Harbour Investments Inc. increased its holdings by 55.6%, now owning 196 shares valued at $36,000 after acquiring an extra 70 shares.
Currently, institutional investors and hedge funds hold 90.64% of DoorDash’s stock, reflecting strong confidence in the company.
Analyst Ratings Reflect Positive Outlook
DoorDash has been the subject of numerous analyst reports, indicating a generally favorable outlook. Sanford C. Bernstein raised its price target on DoorDash shares from $210.00 to $265.00, assigning an “outperform” rating. Conversely, Wells Fargo & Company adjusted its price objective downwards from $306.00 to $301.00, maintaining an “equal weight” rating.
In another positive assessment, Raymond James Financial reiterated a “strong-buy” rating and increased its target price from $275.00 to $325.00. Meanwhile, DA Davidson raised its target from $190.00 to $260.00, issuing a “neutral” rating. According to MarketBeat, DoorDash has garnered four “Strong Buy” ratings, twenty-one “Buy” ratings, and twelve “Hold” ratings, with a consensus rating of “Moderate Buy” and an average price target of $287.79.
DoorDash Stock Performance and Financial Highlights
On the trading front, DoorDash shares opened at $258.15 on Friday, experiencing a 1.4% increase. The stock has fluctuated within a year, reaching a low of $152.26 and a high of $285.50. Currently, DoorDash’s market capitalization stands at approximately $110.28 billion, with a price-to-earnings (P/E) ratio of 143.42.
In its latest quarterly earnings announcement on August 6, 2023, DoorDash reported earnings per share (EPS) of $0.65, surpassing analysts’ expectations of $0.42 by $0.23. The company achieved a net margin of 6.57% and a return on equity of 9.56%, with revenues reaching $3.28 billion, exceeding the forecast of $3.16 billion. This represents a 24.9% increase in revenue year-over-year. Analysts project that DoorDash will report EPS of $2.22 for the current fiscal year.
In addition to the investment news, significant insider trading activity has occurred at DoorDash. Chief Operating Officer Prabir Adarkar sold 41,881 shares on August 25, 2023, at an average price of $245.82, totaling approximately $10.3 million. Following this transaction, Adarkar retained 914,547 shares valued at about $224.8 million.
Similarly, CEO Tony Xu sold 291,403 shares on August 20, 2023, for about $69.4 million. Post-sale, Xu holds 229,047 shares valued at approximately $54.6 million. Over the past 90 days, insiders collectively sold 932,156 shares valued at around $233.6 million. Notably, insiders own 5.83% of the company’s stock.
DoorDash, Inc., through its subsidiaries, operates a platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company provides a range of services including customer acquisition, demand generation, order fulfillment, and payment processing, primarily through its DoorDash Marketplace and Wolt Marketplace.
For further insights into institutional holdings and insider trading at DoorDash, interested parties can visit financial information platforms for the latest updates.
