Docusign Stock Slammed With Bear Notes After Profit Miss

No less than six analysts slashed their price targets

Digital Content Manager
Jun 10, 2022 at 9:52 AM
facebook twitter linkedin

The shares of Docusign Inc (NASDAQ:DOCU) are down 24.3% to trade at $66.20, following the company's dismal earnings report. DOCU posted profits of 38 cents per share, falling below analysts' estimates of 46 cents per share. Though its reported revenue of $588.69 million did top expectations, the e-signature firm also slashed its billings forecast for fiscal 2023. 

The report has invited several bear notes. No less than six analysts slashed their price targets, including BofA Global Research to $72 from $120. The brokerage also downgraded DOCU to "neutral" from "buy." Piper Sandler also chimed in with a price-target cut to $75 from $100, noting the company's weakening macro backdrop. 

Analyst sentiment was already hesitant coming into today. Of the 12 in coverage, seven considered DOCU a "hold" or worse, compared to five " buy" or better ratings. Meanwhile, the 12-month consensus price target of $104.39 is a 58.2% premium to last night's close. 

This pessimism isn't surprising, considering DOCU's 42.6% year-to-date deficit. Despite a rally attempt off its mid-May two-year bottom near the $64 level, the security failed at the 80-day moving average -- a trendline that also acted as a ceiling late last year. 




Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners