Docusign Stock Brushes Off C-Suite Shakeup

The equity is down more than 80% from its 2021 record highs

Deputy Editor
Jun 21, 2022 at 2:26 PM
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The shares of Docusign Inc (NASDAQ:DOCU) are up 1% to trade at $61.13, even as a major c-suite shakeup is taking place. Specifically, the e-signature software concern's CEO, Dan Springer, is leaving his role, effective immediately. Springer, who assumed the position in 2017 and took Docusign public the following year, will be temporarily replaced by Chairman of the Board Maggie Wilderotter until the company finds its next executive.

While the company withheld a reason for Springer's departure, DOCU's failure to capitalize on its pandemic-related success could hint towards the cause. The equity is down more than 80% from its August 2021 all-time high of $314.76, with things kicking off in December after the company notched its worst day ever following earnings.

Overhead pressure has also been looming, at the long-term resistant 50-day moving average. Docusign stock also dropped after its two subsequent financial reports, with its mid-June results accompanied by a host of bear notes. As a result, the equity is down almost 60% in 2022. 

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Analyst sentiment hasn't changed in the meantime. In fact, of the 14 in coverage, 10 consider DOCU a "hold" or worse, while four rate it a " buy" or better. Meanwhile, the 12-month consensus price target of $92.72 is a 51.3% premium to current levels. 

This pessimism is reflected in the options pits, where traders favor puts. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Docusign stock's 50-day put/call volume ratio ranks in the 96th percentile of annual readings, which indicates a preference for bearish bets compared to the last 12 months.

Options look like the ideal avenue to pursue for those looking to speculate on DOCU, as it sports relatively cheap premium. This is per the equity's Schaeffer's Volatility Index (SVI) of 74%, which stands higher than 32% of readings from the past year. What's more, Trade Desk stock has a knack for outperforming options traders' volatility expectations, according to its Schaeffer's Volatility Scorecard (SVS) of 83 (out of 100).

 

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