UBS has recently raised Docusign Inc (DOCU) stock to Neutral rating, as announced on April 12, 2024, according to Finviz. Earlier, on January 16, 2024, Morgan Stanley had raised the stock rating, setting a price target of $64. for DOCU stock. Wells Fargo also reduced Underweight rating. Additionally, Daiwa Securities reduced Outperform rating on December 15, 2023, with a target price of $60. HSBC Securities analysts, in their report published on September 27, 2023, also raised Hold rating and set a price target of $42 for Docusign Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Docusign Inc (DOCU) Stock Trading Recap
On Tuesday, Docusign Inc (DOCU) stock saw a decline, ending the day at $57.91 which represents a decrease of $-1.30 or -2.20% from the prior close of $59.21. The stock opened at $59.21 and touched a low of $57.7 during the day, reaching a high of $59.53. The volume of shares traded was 2.34 million exceeding the average volume of 2.34 million.
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DOCU Stock Performance and Moving Averages
In recent trading, Docusign Inc (DOCU) stock price has shown some volatility, fluctuating -1.38% over the last five trades and 11.95% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 8.14%, and it has gained 8.36% in the previous three months. Currently, DOCU is trading at 4.48%, 5.64%, and 4.81% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, DOCU, a Technology sector stock, is trading -10.58% below its 52-week high but remains 51.95% above its 52-week low. The Average True Range (ATR) (14 days) of 1.54 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Docusign Inc’s Profitability and Valuation Ratios
Docusign Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 3.25% and a profit margin of 3.81%, with a gross margin of 8.14%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Docusign Inc’s market capitalization stands at $11.86 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 112.73, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 16.52. Additionally, the Price-to-Sales Ratio is 4.22, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 10.43, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.99% of Docusign Inc (DOCU)’s shares, while financial institutions hold 79.69%.
Notable insider trades include Springer Daniel D., Director at Docusign Inc (DOCU), who sold 358035 shares on Aug 02 ’24, at $51.55 each, totaling $18.46 million. On Aug 05 ’24, Springer Daniel D., Director, sold 70983 shares for $49.84 each, amounting to $3.54 million. Additionally, on Aug 01 ’24, Thygesen Allan C. sold 7725 shares at $54.89 each, generating $0.42 million.
