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DocuSign Inc. (NASDAQ: DOCU): Overvalued Compared To Others?

DocuSign Inc. (NASDAQ:DOCU) price on Friday, March 17, fall -0.49% below its previous day’s close as a downside momentum from buyers pushed the stock’s value to $58.52.

A look at the stock’s price movement, the close in the last trading session was $58.81, moving within a range at $57.4501 and $59.69. The beta value (5-Year monthly) was 1.00. Turning to its 52-week performance, $113.67 and $39.57 were the 52-week high and 52-week low respectively. Overall, DOCU moved -10.64% over the past month.

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DocuSign Inc.’s market cap currently stands at around $15.25 billion, with investors looking forward to this quarter’s earnings report slated for Jun 07, 2023 – Jun 12, 2023. Analysts project the company’s earnings per share (EPS) to be $0.52, which has seen fiscal year 2023 EPS growth forecast to increase to $1.92 and about $2.16 for fiscal year 2024. Per the data, EPS growth is expected to be -3.00% for 2023 and 12.50% for the next financial year.

Analysts have a consensus estimate of $632.78 million for the company’s revenue for the quarter, with a low and high estimate of $520 million and $647.5 million respectively. The average forecast suggests up to a 8.90% growth in sales growth compared to quarterly growth in the same period last fiscal year. Wall Street analysts have also projected the company’s year-on-year revenue for 2023 to grow to $2.5 billion, representing a 18.40% jump on that reported in the last financial year.

Revisions could be used as tool to get short term price movement insight, and for the company that in the past seven days was no upward and no downward review(s). Turning to the stock’s technical picture we see that short term indicators suggest on average that DOCU is a Hold. On the other hand, the stock is on average a 50% Buy as suggested by medium term indicators while long term indicators are putting the stock in 50% Buy category.

DOCU’s current price about -3.35% and -2.83% off the 20-day and 50-day simple moving averages respectively. The Relative Strength Index (RSI, 14) currently prints 47.92, while 7-day volatility ratio is 6.82% and 5.43% in the 30-day chart. Further, DocuSign Inc. (DOCU) has a beta value of 0.99, and an average true range (ATR) of 3.82.

In the market, a comparison of DocuSign Inc. (DOCU) and its peers suggest the former has performed considerably weaker. Data shows DOCU’s intraday price has changed -0.49% in last session and -29.64% over the past year. Elsewhere, the overall performance for the S&P 500 and Dow Jones Industrial shows that the indexes are down -1.10% and -1.19% respectively in the last trading.

If we refocus on DocuSign Inc. (NASDAQ:DOCU), historical trading data shows that trading volumes averaged 8.05 million over the past 10 days and 4.74 million over the past 3 months. The company’s latest data on shares outstanding shows there are 201.39 million shares.

The 1.00% of DocuSign Inc.’s shares are in the hands of company insiders while institutional holders own 78.60% of the company’s shares. Also important is the data on short interest which shows that short shares stood at 11.01 million on Jan 30, 2023, giving us a short ratio of 2.61. The data shows that as of Jan 30, 2023 short interest in DocuSign Inc. (DOCU) stood at 5.47% of shares outstanding, with shares short falling to 13.17 million registered in Dec 29, 2022. Current price change has pushed the stock 5.59% YTD, which shows the potential for further growth is there. It is this reason that could see investor optimism for the DOCU stock continues to rise going into the next quarter.

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