Technicals Say DocuSign Inc. (DOCU) Is A Hold

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RTX Stock
RTX Stock

DocuSign Inc. (NASDAQ:DOCU) finished Thursday with a subtraction of -$0.6 to close at $54.00, a downside of -1.10 percent. An average of 4,809,920 shares of common stock have been traded in the last five days. There was a fall of -$6.28 in the past week, and it reached a new high 5 times over the past 12 months. The last 20 days have seen an average of 6,435,995 shares traded, while the 50-day average volume stands at 4,380,982.

DOCU stock has decreased by -11.53% in the last month. The company shares reached their 1-month lowest point of $52.53 on 09/22/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $53.25 and a high of $288.50 in 52 weeks. It has reached a new high 1 time so far this year and lost -64.55% or -$98.31 in price. In spite of this, the price is down -81.28% from the 52-week high.


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Insider Transactions

171 days have passed since DocuSign Inc. (DOCU) last reported insider trading activity. OLRICH SCOTT V., who is Chief Operating Officer, most recently acquired $255 shares at $110.31 per share on Apr 05. In this transaction, the insider spent $28,129. Chief Operating Officer, OLRICH SCOTT V., disposed of 3,948 shares at a price of $110.09 on Apr 05. The insider now owns more than $434,623 worth of shares. Prior to that, Chief Operating Officer OLRICH SCOTT V. went on to Sale 835 shares at $109.99 each on Mar 29. An amount of $91,844 was transacted.

Valuation Metrics

DocuSign Inc. (DOCU) stock’s beta is 1.22. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.94, the price-to-book (PB) ratio at 26.60, and the price-to-cash flow ratio at 26.23.

Financial Health

The quick ratio of DocuSign Inc. for the three months ended April 29 was 1.00, and the current ratio was 1.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.77 and a total debt to equity ratio of 0.00 for the quarter ending April 29. Its gross profit as reported stood at $1.64 billion compared to revenue of $2.11 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, DocuSign Inc.’s return on assets was -4.30%.

Earnings Surprise

For the three-month period that ended April 29, DocuSign Inc. had $357.54 million in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$45.08 million in the quarter, while revenues of -$27.37 million were grew 43.43%. The analyst consensus anticipated DocuSign Inc.’s latest quarter earnings to come in at $0.46 per share, but it turned out to be $0.38, a -17.40% surprise. For the quarter, EBITDA amounted to $26.84 million. Shareholders own equity worth $200.78 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at DocuSign Inc. (DOCU) price momentum. RSI 9-day as of the close on 22 September was 32.88%, suggesting the stock is Neutral, with historical volatility in this time frame at 43.94%.

As of today, DOCU’s price is $55.44 -10.42% or -$6.28 from its 5-day moving average. DOCU is currently trading -11.40% lower than its 20-day SMA and -33.33% lower than its 100-day SMA. However, the stock’s current price level is -12.48% below the SMA50 and -62.47% below the SMA200.

The stochastic %K and %D were 11.91% and 16.36%, respectively, and the average true range (ATR) was 3.20. With the 14-day stochastic at 9.92% and the average true range at 3.35, the RSI (14) stands at 37.02%. The stock has reached -3.58 on the 9-day MACD Oscillator while the 14-day reading was at -3.14.

Analyst Ratings

MoffettNathanson launched coverage on DocuSign Inc. (NASDAQ: DOCU) in its analyst report released on September 22, 2022. The firm assigned the stock an Underperform rating.

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