The stock of DocuSign, Inc. (NASDAQ:DOCU) is now priced at $268.8 and the shares are 45.8 points up or 20.54% higher compared to its previous closing price of $223. The stock had 20.852 million contracts set over the past session. DOCU shares’ daily volume is compared to its average trading volume at 4.942 million shares. However, it has a float of 171 million and although its performance was 31.06% over the week, it’s one to watch. Analysts have given the DOCU stock a yearly average price target of $191.15 per share. It means the stock’s downside potential is -28.89% with the DOCU share price recently placing at $237 to $271.44. However, some brokerage firms have priced the stock below the average, including one that has called $140.
The shorts are running away from the DocuSign, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the DOCU shares have declined. Short interest in the stock represents just 4.71% of its float, but the volume has dropped by -275268. The volume of shorted shares dropped to 8.049 million from 8.324 million shares over the last two weeks. The average intraday trading volume has been 3.591 million shares, which means that days to cover moved to roughly 2.2412.
In the last trading session, DocuSign, Inc. (NASDAQ:DOCU) raised by $63.71 over the week and gained $41.12 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $271.44. The stock recorded its established 52-week high on 09/01/20.
Since 09/05/19, the stock has traded to a low of $45.52 at 490.51%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge.
Looking at current readings, DocuSign, Inc.’s two-week RSI is 78.72. This suggests that the stock is oversold at the moment and that DOCU shares’ price movement remains not stable. The stochastic readings are equally revealing at 89.54% meaning the DOCU share price is currently in oversold territory.
The technical chart shows that the DOCU stock will likely settle at between $281.16 and $293.52 per share. However, if the stock dips below $246.72, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $224.64.
Currently, the stock is trading in the green of MACD, with a reading of 16.74. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at RBC Capital Mkts though raised target price of DOCU stock from $170 to $210 but maintained Outperform recommendation in their July 02 review. Oppenheimer analysts see the stock as a Outperform with a target price of $200 in a flash note released to investors on June 25 initiating covering the stock. Wells Fargo analysts see the stock as Equal Weight when the analysts initiated the share price coverage on June 23, placing it at $160.
The average rating for the DOCU equity is 2.18 and is currently gathering a bullish momentum. Of 17 analysts tracking DocuSign, Inc. polled by Reuters, 7 rated DOCU as a hold. The remaining 10 analysts were split evenly. However, the split wasn’t equal as a majority (10) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the DOCU stock price is 322.69X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 6367.1. DocuSign, Inc. has its P/E ratio at 94.4, which means that the stock is currently trading at a premium relative to the 11.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for DocuSign, Inc. (NASDAQ:DOCU) will decrease by about -99.89%, which will see them reach $319 million. The company’s full-year revenues are, however, expected to increase by about 35.53%, up from $974 million to $1320 million. DOCU’s expected adjusted earnings should surge almost 700% to end up at $0.08 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 54.84% to record $0.48/share.