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Why Are Top Insiders Selling DASH Stock?

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Prabir Adarkar, the CFO of food delivery platform DoorDash (DASH), has sold 63,213 shares of the company for more than $4 million. After the sale, Adarkar owns 849,179 shares of DoorDash worth around $55 million.

Apart from the CFO, several other executives were seeing selling their stakes in the company on Tuesday.

The President and COO of the company, Christopher Payne, sold shares worth over $1 million. Further, Director Stanley Tang sold 4,028 shares for $259,967.12. Tang now owns 49,285 shares of the company.

TipRanks’ Insider Trading Activity tool shows all the buy and sell transactions carried out by a company’s insiders. DoorDash’s insider transactions can be seen below:

Wall Street’s Take

Recently, an analyst with Bernstein initiated coverage on the stock with a Buy rating and a $90 price target (43.6% upside potential).

The analyst expects the company to grow “despite headwinds” as it has the “best-in-class” management team.

In a research note to investors, Devnani said, “The company is proving more durable than e-commerce, it doesn’t have the same driver supply issues as rideshare, there’s very little exposure to Europe, and the underlying unit economics of the business remain compelling.”

Overall, the stock has a Moderate Buy consensus rating based on 11 Buys and six Holds. DASH’s average price target of $125.71 implies 100.6% upside potential from current levels. Shares have lost 54% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings, the world’s biggest website usage monitoring service, offers insight into DoorDash’s performance.

According to the tool, DoorDash’s website traffic registered a 4.2% rise in global visits in April, compared to March. Further, the footfall on the company’s website has grown 102.9% year-to-date against the same period last year.

Conclusion

The stock sale by several of the company’s executives could imply that they expect DASH stock to decline due to the falling demand for DoorDash’s services amid rising inflation. It could also mean that the company is planning to increase its subscription fee, which could hurt its stock price.

Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash. 

Read full Disclaimer & Disclosure

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