Analysis of the DocuSign Inc stock:
Jefferies Financial LLC Upgrades DocuSign Inc. to a Buy rating and raises the target price to $70 from $50 on the company’s stock.
Piper Sandler raises the target price to $55 from $50 and maintains the Neutral rating on the DocuSign stock.
Based on 14 analysts’ estimates for the DocuSign Inc (DOCU:NSD) stock for the next 12 months, the average analyst target price for DocuSign Inc is USD 59.71. The average analyst rating for DocuSign Inc. is Hold. DocuSign Inc.’s stock has a Stock Target Advisor own stock analysis of Neutral, with 5 positive and 5 negative signs. The stock price of DocuSign Inc. was USD 56.27 at the most recent closing. The stock price of DocuSign Inc. changed by +3.50% over the previous week, +9.67% over the previous month, and -60.97% over the previous year.
News for DOCU Stock:
DocuSign is currently one of 344 companies in the Business Services sector, and is ranked near the top of the pack. The Recent increases in earnings estimates and estimate revisions demonstrates DocuSign’s financials are continuing to improve on a earnings outlooks perspective. The Zacks Consensus Estimate for DocuSign’s full-year earnings for 2023, has increased substantially 77.8 percent higher. This is a barometer of the indication of a trend showing improving analyst sentiment towards the company and the stock. giving toa positive earnings outlook trend ahead.
Fundamental Stock Analysis:
Positive Fundamentals:
High market capitalization:
This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.
Superior returns on risk:
In the top quartile, this stock has outperformed its sector rivals on a risk-adjusted basis over the course of at least a 12-month holding period.
A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.
Superior growth in revenue:
Compared to its industry, this stock’s revenue growth over the previous five years has been in the top quartile.
High Asset to Gross Profit Ratio:
When compared to its rivals, this stock’s Gross Profit to Asset Ratio is in the top quartile. Value investors choose this metric because it exhibits superior long-term returns.
Negative Fundamentals:
Excessive volatility:
Over the past five years, this company’s total returns have been erratic and higher above the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.
Compared to book value, it is overpriced:
On a price to book value basis, the stock is selling at a premium to the median of its peer group.
Overpriced based on cash flow:
On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
Extremely leveraged:
In terms of debt to equity, the company is heavily leveraged and in the bottom half of its sector rivals. Check the news, though, and study the sector and management remarks. This can be high at times since the business is attempting to grow quickly.
Free cash flow that is negative:
In the last four quarters, the company’s overall free cash flow was negative.
About DocuSign Inc.:
Electronic signature software is offered by DocuSign, both domestically and abroad. The business offers e-signature software that enables companies to create, sign, manage, and act upon contracts electronically. Additionally, it provides CLM, which streamlines procedures across the whole agreement process. Legal concepts and clauses are searched for and analyzed in agreements using artificial intelligence (AI); Using Gen for Salesforce, sales personnel may quickly and automatically generate agreements from within Salesforce; Ask Salesforce to provide document comparisons, version management, and approvals; Analyzer, which aids clients in comprehending what they are signing prior to doing so; AI-driven contract lifecycle management is offered by and CLM+. The business offers guided forms, which let users fill out complicated forms in a step-by-step, interactive manner; Click that enables standard terms and consents without the need for a signature; Identify, a tool for verifying the identity of signers on government-issued identification; Standards-Based Signatures, which allow for the use of digital certificates in signatures; payments that give clients the ability to gather signatures and payment; In order to perform notarization, Remote Online Notary uses audio-visual and identity verification technologies. Monitor tracks DocuSign eSignature web, mobile, and API accounts using powerful analytics. It provides cloud services tailored to particular industries, such as Rooms for Real Estate, which enables brokers and agents to manage the entire real estate transaction digitally; Rooms for Mortgage, which provides a digital workspace for creating and closing mortgages; FedRAMP, an authoriZed version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules, which support compliance with electronic signature practices. The business offers its goods directly, through partner assistance, and online.
