DocuSign Inc. [NASDAQ:DOCU] has active tape with a current price of $219.86 against an analyst price target of 250.26.
For the year, the stock is trading 202.32% and the five-day change stands at 4.09%. As a point of reference, the S&P 500 is trading 0.55% YTD.
Other data to note about the company today is the Recommendation Trend that is leaning toward DocuSign Inc. [DOCU] as Moderate Buy.
The Bears are coming
Holding a Market Cap of $42.24 billion, DocuSign Inc. has seen a trading range over the last year of $61.68-$290.23.
For the last five days, DOCU is up from its last closing price. The average shares trading hands each day is 6.00M, with average 10-day volume coming in at 4.62 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for DOCU. When we apply the Elder Force Index to DocuSign Inc., we are seeing an Elder Force Indicator number of -6037555.36.
The recent performance of the stock is another area that can tell traders how to proceed. DOCU is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 241.43. Moreover, the company’s enterprise value has gone from $40.06B to $19.21B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, DOCU made a profit of 251.59 million. DocuSign Inc. also saw quarter revenue growth year over year of 38.95%. In addition, the company has operating cash flow of $220.91 million.
Looking at popular technical indicators, the company’s 5-day moving average is 221.62 compared to the 50-day moving average of 214.62. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. DOCU currently holds a 9-day RSI of 53.26%, while 100-day RSI stands at 57.38%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. DOCU’s 9-day MACD is 2.22 and the company’s 100-day MACD stands at 30.13.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 7.18% by insiders and 83.86% by institutions. Regarding institutional holdings, Price (T.Rowe) Associates Inc owns 9.86%, while the second top holder, Vanguard Group, Inc. (The), currently owns 8.62%.
Over the last six months, insiders have sold 15,000 with the most recent transaction from Salem Enrique T, Director, with a sell at price 214.35 per share.
Overall, the recommended rating for DOCU is Moderate Buy. Currently, the company has 15 analysts watching the stock, and the average quarterly earnings estimate is 0.13. Quarterly revenue estimates are averaging 360.95M with the high estimate reaching 363.07M and the low at 359.5M.
To review, the current 1-year target estimate is sitting at 250.26, while the current price 219.86. Based on this, we expect the stock to rise considering the aforementioned fundamentals.