How Worried Should Investors Be About DocuSign Inc (NASDAQ: DOCU)’

DocuSign Inc (NASDAQ:DOCU) does about 2.44M shares in volume on a normal day but saw 3384140 shares change hands in Monday trading. The company now has a market cap of 10.44B USD. Its current market price is $50.99, marking a decrease of -2.04% compared to the previous close of $52.05. The 52 week high reached by this stock is $64.76 whilst the lowest price level in 52 weeks is $38.11.

DocuSign Inc (DOCU) has a 20-day trading average at $56.84 and the current price is -21.26% off the 52-week high compared with 33.80% distance from its 52-week low. The 50-day simple moving average of the closing price is $57.59 and its 200-day simple moving average is $52.06. If we look at the stock’s price movements over the week, volatility stands at 3.62%, which decreases to 3.01% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 30.37 to suggest the stock is neutral.

The consensus objective for the share price is $62.74, suggesting that the stock has a potential upside of 18.73% over the period.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on April 12, 2024 when UBS upgraded the stock to “Neutral” and issued a price target of between $48 and $62. Morgan Stanley also upgraded the stock to “Equal-Weight” from Underweight on January 16, 2024 at a price target of $49-$64.

DocuSign Inc (DOCU) stock is down -4.58% over the week and -10.98% over the past month. Its price is -14.23% year-to-date and -12.81% over the past year.

The stock last released its quarterly earnings report for quarter ended 4/30/2024, with the company’s earnings per share (EPS) of 0.72 above consensus estimates by 0.06. The company’s next earnings report forecasts estimating quarterly EPS at 0.8 and 3.26 for whole year. Expected sales for next quarter are $739.36M, which analysts say will come at $2.93B for the current fiscal year and next year at $3.11B. In addition, estimates put the company’s current quarterly revenue at an average of $727.04M.

To reach the target analysts have set, the stock logically needs to grow 18.73 percent from here.

The company has a return on investment of 8.55% and return on equity of 11.37%. The price to earnings ratio (P/E ratio) amounts to 99.26 while the forward price to earnings ratio is 14.47. The beta has a value of 0.95. Price to book ratio is 9.18 and price to sales ratio is 3.72.