“On March 1, Goldman Sachs (GS) - Get Report and J.P. Morgan Securities (JPM) - Get Report, as representatives of the underwriters, agreed that the restricted period will end with respect to 40% of the shares subject to each lockup agreement,” the San Francisco company said in a Securities and Exchange Commission filing.
The total is “20% of shares if the stockholder is a member of the company’s board of directors (excluding affiliated funds) or management team.”
The shares are eligible for sale in the public market at the opening of trading March 9.
DoorDash went public Dec. 9. The original lockup agreement was to last for 180 days. About 35.8% of shares outstanding will be eligible for sale, which could more than double DoorDash’s public float, MarketWatch reported.
The stock recently traded at $173.37, up 2.3%.
Meanwhile, TheStreet.com founder Jim Cramer on Monday expressed agreement with analysts who said after DoorDash’s earnings report last week that its growth will likely slow as the U.S. economy reopens.
To be sure, some analysts stuck with the company, as it beat Wall Street's fourth-quarter-revenue estimates. Deutsche Bank analyst Lloyd Walmsley raised his price target to $190 a share from $185 and affirmed his buy rating.
"We understand the negative reaction from a contribution profit miss in the first quarter as a public company, but view this pullback as an opportunity for investors to reload on a fast-growing market leader with best-in-class execution and an enormous [total addressable market] ahead of it," he wrote in a commentary.