DocuSign Inc. (NASDAQ: DOCU) stock fell -1.71% on Wednesday to $53.47 against a previous-day closing price of $54.40. With 1.98 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.77 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $54.00 whereas the lowest price it dropped to was $52.82. The 52-week range on DOCU shows that it touched its highest point at $92.04 and its lowest point at $39.57 during that stretch. It currently has a 1-year price target of $68.12. Beta for the stock currently stands at 0.95.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DOCU was up-trending over the past week, with a rise of 2.26%, but this was up by 8.79% over a month. Three-month performance dropped to -12.97% while six-month performance rose 21.03%. The stock lost -31.69% in the past year, while it has lost -3.52% so far this year. A look at the trailing 12-month EPS for DOCU yields -0.49 with Next year EPS estimates of 2.67. For the next quarter, that number is 0.59. This implies an EPS growth rate of -36.30% for this year and 10.67% for next year. EPS is expected to grow by 20.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -4.80%.
Float and Shares Shorts:
At present, 201.91 million DOCU shares are outstanding with a float of 197.79 million shares on hand for trading. On May 14, 2023, short shares totaled 7.78 million, which was 3.85% higher than short shares on Apr 13, 2023. In addition to Mr. Allan C. Thygesen as the firm’s CEO & Director, Ms. Cynthia Gaylor serves as its Chief Financial Officer.
Through their ownership of 77.91% of DOCU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 39.93% of DOCU, in contrast to 38.68% held by mutual funds. Shares owned by individuals account for 21.40%. As the largest shareholder in DOCU with 9.55% of the stake, The Vanguard Group, Inc. holds 19,284,895 shares worth 19,284,895. A second-largest stockholder of DOCU, BlackRock Fund Advisors, holds 8,680,442 shares, controlling over 4.30% of the firm’s shares. Polen Capital Management LLC is the third largest shareholder in DOCU, holding 8,480,109 shares or 4.20% stake. With a 3.09% stake in DOCU, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 6,236,683 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 3.07% of DOCU stock, is the second-largest Mutual Fund holder. It holds 6,188,856 shares valued at 305.98 million. Vanguard Mid Cap Index Fund holds 2.30% of the stake in DOCU, owning 4,640,299 shares worth 229.42 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jan 30, 2023, DOCU reported revenue of $588.69M and operating income of -$19.23M. The EBITDA in the recently reported quarter was $2.08M and diluted EPS was -$0.14.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DOCU since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DOCU analysts setting a high price target of $84.00 and a low target of $48.00, the average target price over the next 12 months is $64.93. Based on these targets, DOCU could surge 57.1% to reach the target high and fall by -10.23% to reach the target low. Reaching the average price target will result in a growth of 21.43% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded DOCU stock several times over the past three months with 14 Buys and 6 Sells. In these transactions, 55,948 shares were bought while 20,798 shares were sold. The number of buy transactions has increased to 52 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 253,300 while 546,385 shares were sold.