Bull Notes Galore For DOCU After Earnings Beat

Seven brokerages have upped their price target already

Deputy Editor
Jun 5, 2020 at 10:12 AM
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The shares of DocuSign Inc (NASDAQ:DOCU) are up 1% to trade at $141.52, after reporting positive results in the earnings confessional yesterday evening. The company reported fiscal first-quarter profits of 12 cents on revenue of $297.02 billion, both of which were higher than analysts' estimates. .

In response, DOCU has received no less than seven price-target hikes, the highest coming from RBC to $170 from $10. The slew of bull notes echoes the broader analyst sentiment; 10 of the 13 brokerages covering DocuSign stock consider it a "buy" or better. Meanwhile, the consensus 12-month price target of $143.08 is a slim 3% premium to last night close, signaling even more wiggle room for additional price-target hikes to come. 

DocuSign stock has tacked on 51.6% since recovering from its mid-March fall, and is fresh off a new all-time high of $152 from June 2. Longer term the stock boasts a 12-month gain of 162.7% while shorter-term, DOCU has found emerging support at its 10-day moving average, even despite its back-to-back losses

Meanwhile, in the option pits, there is a strong preference for puts lately. DOCU sports a 10-day put/call volume ratio of 0.56 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the elevated 83rd percentile of its annual range. So while calls still outnumber puts on an absolute basis, the high percentile suggests a healthier-than-usual appetite for short puts of late.

 

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