DocuSign Stock Brushes Off Quarterly Beat

Options traders and analysts are adding to the pessimism

Deputy Editor
Mar 10, 2023 at 10:20 AM
facebook X logo linkedin


The shares of DocuSign Inc (NASDAQ:DOCU) plunging is morning, last seen down 20.3% to trade at $51.31 -- a three-month low -- despite a better-than-expected fourth-quarter report.

The e-signature specialist stepped into the earnings confessional after yesterday's close, and reported adjusted earnings per share of 65 cents on revenue of $659.58 million, both of which beat Wall Street's estimates. However, the company also issued a soft forecast for the first-quarter and shared that CFO Cynthia Gaylor is stepping down after two years in the role, both of which are weighing on the shares this morning.

Bearish options traders were quick to respond. More than 26,000 puts have been traded so far, though 20,000 calls have also crossed the tape, with total volume running at 11 times the average intraday amount. New positions are opening at the two most popular contracts, the weekly 3/10 50- and 53-strike puts. 

Analysts are chiming in following the event, too. JP Morgan Securities, for example, downgraded DOCU to "underweight" from "neutral" and cut its price target to $48 from $58. Meanwhile, no less than three additional brokerages lowered their price objectives. Coming into today, 13 of the 16 covering analysts recommended a "hold" or worse rating on DocuSign stock.

Due to today's negative price action, the shares are trading below their 80-day moving for the first time since early December. Now pacing for their steepest weekly drop since June, DocuSign stock is now down 7.1% in 2023.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI