On September 8, 2023, Prabir Adarkar, President and COO of DoorDash Inc (DASH, Financial), sold 8,000 shares of the company. This move is part of a larger trend for the insider, who over the past year has sold a total of 69,167 shares and purchased none.
Prabir Adarkar joined DoorDash in 2018 as the company's Chief Financial Officer. He was promoted to President and COO in 2021. Prior to joining DoorDash, Adarkar worked at Uber, where he led the global finance team. His experience in the tech industry and financial expertise have been instrumental in guiding DoorDash's growth and financial strategy.
DoorDash Inc is a technology company that connects customers with their favorite local and national businesses in more than 4,000 cities and all 50 states across the United States and Canada. Founded in 2013, DoorDash empowers merchants to grow their businesses by offering on-demand delivery, data-driven insights, and better in-store efficiency.
The insider's recent sell comes at a time when DoorDash's stock is trading at $81.81 per share, giving the company a market cap of $32.76 billion. Over the past year, there have been no insider buys and 82 insider sells, indicating a trend of insiders cashing out their shares.
The above image shows the trend of insider transactions over the past year. The consistent selling by insiders could be a signal to investors about the company's future prospects. However, it's important to note that insider selling can occur for a variety of reasons and does not necessarily indicate a negative outlook for the company.
In terms of valuation, DoorDash Inc's stock is currently trading at a price-to-GF-Value ratio of 0.65, based on its GuruFocus Value of $126.27. This suggests that the stock is a possible value trap, and investors should think twice before investing.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts. In the case of DoorDash, the GF Value suggests that the stock may be overvalued at its current price.
In conclusion, the recent sell by the insider, along with the company's valuation and insider transaction trends, suggest that investors should exercise caution when considering an investment in DoorDash Inc.
