DocuSign Inc. (NASDAQ:DOCU) finished Wednesday with a subtraction of -$0.39 to close at $50.70, a downside of -0.76 percent. An average of 1,834,300 shares of common stock have been traded in the last five days. There was a fall of -$0.64 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 2,315,075 shares traded, while the 50-day average volume stands at 4,065,304.
DOCU stock has decreased by -2.05% in the last month. The company shares reached their 1-month lowest point of $49.32 on 07/10/23. With the stock rallying to its 52-week high on 02/16/23, shares of the company touched a low of $39.57 and a high of $77.19 in 52 weeks. It has reached a new high 8 times so far this year and lost -8.52% or -$4.72 in price. In spite of this, the price is down -34.32% from the 52-week high.
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Insider Transactions
DOCU stock investors should be aware that DocuSign Inc. (DOCU) stock had its last reported insider trading activity 34 days ago on Jul 07. In this transaction, the insider spent $125,062. President, Field Operations, Shute Stephen, disposed of 100,315 shares at a price of $49.20 on Jul 06. The insider now owns more than $4,935,349 worth of shares. Prior to that, Director Briggs Teresa went on to Sale 1,988 shares at $58.53 each on Mar 16. An amount of $116,358 was transacted.
Valuation Metrics
DocuSign Inc. (DOCU) stock’s beta is 0.90. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.04, the price-to-book (PB) ratio at 13.70, and the price-to-cash flow ratio at 22.30.
Financial Health
The quick ratio of DocuSign Inc. for the three months ended April 29 was 0.80, and the current ratio was 0.80, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.97 for the quarter ending April 29. DocuSign Inc.’s EBITDA margin for the year ending April 29 is 2.43%, while its operating margin for the same period stands at -2.80%. Its gross profit as reported stood at $1.98 billion compared to revenue of $2.52 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 -2.40%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $0.54 million in the quarter, while revenues of $32.34 million were grew 5168.52%. The analyst consensus anticipated DocuSign Inc.’s latest quarter earnings to come in at $0.56 per share, but it turned out to be $0.72, a 28.60% surprise. For the quarter, EBITDA amounted to $67.69 million. Shareholders own equity worth $202.37 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 09 August was 40.24%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.95%.
As of today, DOCU’s price is $51.36 -1.25% or -$0.64 from its 5-day moving average. DOCU is currently trading -2.12% lower than its 20-day SMA and -13.79% lower than its 100-day SMA. However, the stock’s current price level is -7.82% below the SMA50 and +8.66% above the SMA200.
The stochastic %K and %D were 23.46% and 23.04%, respectively, and the average true range (ATR) was 1.63. With the 14-day stochastic at 20.83% and the average true range at 1.70, the RSI (14) stands at 43.34%. The stock has reached -0.88 on the 9-day MACD Oscillator while the 14-day reading was at -0.87.
Analyst Ratings
JP Morgan downgraded DocuSign Inc. (NASDAQ: DOCU) to a an Underweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for DocuSign Inc. (DOCU) among analysts is Hold. According to current brokerage recommendations, 4 brokerage firms advise that investors sell DOCU, while 16 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 4 others rate it as a “buy”.
What is DOCU’s price target for the next 12 months?
Analysts predict a range of price targets between $48.00 and $84.00, with a median target of $67.00. Taking a look at these predictions, the average price target given by analysts for DocuSign Inc. (DOCU) stock is $65.40.
