Ready to Jump After Recent Trade: DocuSign Inc. (DOCU)

DocuSign Inc. (NASDAQ: DOCU) stock fell -0.43% on Monday to $43.76 against a previous-day closing price of $43.95. With 5.29 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.28 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $44.33 whereas the lowest price it dropped to was $43.19. The 52-week range on DOCU shows that it touched its highest point at $69.45 and its lowest point at $39.57 during that stretch. It currently has a 1-year price target of $64.28. Beta for the stock currently stands at 0.91.

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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 down-trending over the past week, with a drop of -6.91%, but this was down by -8.11% over a month. Three-month performance dropped to -18.74% while six-month performance fell -25.22%. The stock lost -27.41% in the past year, while it has lost -21.04% so far this year. A look at the trailing 12-month EPS for DOCU yields -0.09 with Next year EPS estimates of 2.72. For the next quarter, that number is 0.63. This implies an EPS growth rate of -36.30% for this year and 2.76% 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, 203.70 million DOCU shares are outstanding with a float of 200.75 million shares on hand for trading. On Aug 30, 2023, short shares totaled 8.66 million, which was 4.26% higher than short shares on Jul 30, 2023. In addition to Mr. Allan C. Thygesen as the firm’s CEO & Director, Ms. Inhi Cho Suh serves as its Pres of Product & Technology.

Institutional Ownership:

Through their ownership of 79.10% of DOCU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 41.12% of DOCU, in contrast to 38.69% held by mutual funds. Shares owned by individuals account for 21.46%. As the largest shareholder in DOCU with 9.91% of the stake, The Vanguard Group, Inc. holds 20,049,855 shares worth 20,049,855. A second-largest stockholder of DOCU, BlackRock Fund Advisors, holds 9,202,968 shares, controlling over 4.55% of the firm’s shares. Polen Capital Management LLC is the third largest shareholder in DOCU, holding 8,474,014 shares or 4.19% stake. With a 3.09% stake in DOCU, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 6,260,268 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 3.06% of DOCU stock, is the second-largest Mutual Fund holder. It holds 6,188,856 shares valued at 311.3 million. Vanguard Mid Cap Index Fund holds 2.32% of the stake in DOCU, owning 4,687,548 shares worth 235.78 million.

Analysts Ratings:

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 $87.00 and a low target of $42.00, the average target price over the next 12 months is $62.99. Based on these targets, DOCU could surge 98.81% to reach the target high and fall by -4.02% to reach the target low. Reaching the average price target will result in a growth of 43.94% 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 1 Buys and 3 Sells. In these transactions, 2,500 shares were bought while 102,815 shares were sold. The number of buy transactions has increased to 44 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 461,719 while 737,934 shares were sold.

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