DocuSign Stock Soars After Optimistic Bull Note

The equity is up 272% year-over-year

Digital Content Manager
Jul 2, 2020 at 3:04 PM
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The shares of DocuSign Inc (NASDAQ: DOCU) are up 7.5% at $192.52 at last check, on pace to grab its third consecutive win of the week, after brokerage firm RBC hiked the stock's price target to $210 from $170 late Wednesday. Though that high of territory has never been breached by the electronic signature company before, shares have skyrocketed since March, with its lastest all-time-high coming in at $199.49 earlier today. Further, DOCU has received consistent support from its 20-day moving average since March, and year-over-year, the stock is up a whopping 272%. 


Today's pop has options bulls coming in droves. So far, 56,000 calls have crossed the tape -- almost three times the average intraday volume, and twice the number of puts traded. Most popular are the weekly 7/2 190- and 200-strike calls,with positions being opened at both. This suggests traders have been speculating more upside for DOCU by today's close. This penchant for bullish bets is the norm, considering 18,576 calls were traded in the last 10 days, compared to just 12,221 puts.

Analysts were overwhelmingly optimistic toward DOCU coming into today, with eleven of the 15 in coverage sporting a "buy" recommendation or better, and the remaining four carrying a tepid "hold." Meanwhile, the 12-month consensus target price of $166.48 is a 13.4% discount to current levels, meaning more price target hikes could be on the horizon. 

What's more, DocuSign stock's Schaeffer's Volatility Scorecard (SVS) sits quite high at 94 out of 100. This shows that the stock has tended to exceed option traders' volatility expectations during the past year, a good thing for option buyers.


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