Will Recent Reports Affect DocuSign's Share Price?

By Kim Brooks • Friday, March 10 16:22 • Permanent Link

DOCU investors were likely spooked this aftermarket by Wall Street Journal's report: "The e-signature company warned of a worsening macroeconomic backdrop, and analysts raised concerns about stepped-up competition." For more coverage, read the full article here. On the back of this news, DocuSign sank -21.58% to a price of $50.51. Are the markets overreacting?

DocuSign, Inc. provides cloud-based software in the United States and internationally. The company belongs to the Technology sector, which has an average price to earnings (P/E) ratio of 27.16 and an average price to book (P/B) ratio of 6.23. In contrast, DocuSign has a trailing 12 month P/E ratio of -74.28 and a P/B ratio of 21.1.

DocuSign has moved -31.39% over the last year compared to -6.8% for the S&P 500 -- a difference of -24.59%. DocuSign has a 52 week high of $113.67 and a 52 week low of $39.57. At today's price of $50.51 per share, DocuSign is -24.39% away from its target price of $66.8, and on average, analysts give the stock a rating of hold. 5% of the company's shares are linked to short positions, and 79% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.