Don’t Catch DocuSign, Inc. (DOCU) Stock So Quickly

DocuSign, Inc. (NASDAQ:DOCU) is now being followed by Wedbush, as they initiated the stock at Neutral on October 19. Analysts at Piper Jaffray, started covering the stock on May 22 with a Overweight rating. Analysts at Morgan Stanley, made their first call about the stock on May 22, recommending it is Equal-Weight. JP Morgan, released new analyst coverage on May 22, calling the stock is Overweight.

DocuSign, Inc. (DOCU) hit an intraday high Thursday at $41.98. The shares finished at $41.77, after trading as low as $40.05 earlier in the session. It rose 0.72% in recent trade and currently has a stock-market value of $6.55B. Trading activity significantly improved as the volume at ready counter increased to 2,978,636 shares versus 1,866,640 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,811,088 shares. The stock is now 19.14% above against its bear-market low of $35.06 on November 20, 2018. It has retreated -63.63% since it’s 52-week high of $68.35 reached in August. Now the market price is down 0% on the year and up 5.13% YTD.

DOCU’s 50 day simple moving average (SMA 50) price is $43.07. The company’s stock currently has a total float of 139.48M shares. Its weekly volatility is hovering around 4.19% and felt 5.16% volatility in price over a month. On the upside, the share price will test short term resistance at around $42.48. On a downside, the stock is likely to find some support, which begins at $40.55. The failure to get near-term support could push it to $39.34.

Separately, it has been reported that multiple insider activity took place at DocuSign, Inc. (DOCU). Director Salem Enrique T sold 478,260 shares for $4,968,337 in transaction occurred on 2018/09/18. After making this transaction, the Director owns a direct stake of 25,620,388 shares, worth $208,000,000, as per the last closing price. On 2018/09/18 Solvik Peter, Director at DOCU, dumped 1,304,348 shares at an average price of $55 per share. The selling total is valued at $636,000,000.

10% Owner, Sigma Management 7, L.L.C. had divested 1,304,348 shares for $15,121,036 through a trade on 2018/09/18. Following this activity, the insider holds 71,739,140 shares worth $632,000,000 as of recent close. Wall Street’s most bullish DocuSign, Inc. (NASDAQ:DOCU) analysts are predicting the share price to blow past $88 per share during the next 12 months. The current median share price forecast by them is $65.5, suggesting that the stock could increase 56.81% in that time frame. The average price target of $63.88 calls for a nearly 52.93% increase in the stock price.

Moreover, it trades for 273.01 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 9.32x price/book and 10.88x price/sales. It’s also very liquid in the near term, with a current ratio of 2.5. The stock has a debt/capital of 0.

Revenue for the recent quarter stood at $167.04 million, up 1670300% on last year and above the $159.6 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $186.51 million to $205.3 million, which should be compared with $0 generated last year. EPS is seen in a range of -$0.03 to $0.08, against the 0 reported a year ago.