DocuSign stock fell 8.7 percent yesterday and closed at $242.01 with a market capitalization of $44.4 billion. The stock also dropped around 8 percent in after-hours trading. Yesterday, the company reported its earnings results for fiscal 2021's second quarter (ended July 31). DocuSign stock fell amid a broader market sell-off led by tech stocks.
What is DocuSign?
DocuSign allows organizations to manage electronic agreements. The California-based company, founded in 2003, creates electronic signatures on different devices. The company has more than 475,000 customers and hundreds of millions of users in over 180 countries. DocuSign went public on April 27, 2018, on the Nasdaq.
In the second quarter, DocuSign reported adjusted EPS of $0.17, compared with $0.01 in the second quarter of fiscal 2020. The adjusted EPS beat analysts’ average estimate of $0.08. DocuSign generated sales of $342.2 million in the second quarter, 45 percent more than it did in the second quarter of fiscal 2020. The company beat analysts’ average sales estimate of $318.6 million.
In fiscal 2021, the company expects total revenue and billings of $1.384 billion–$1.388 billion and $1.623 billion–$1.643 billion, respectively. Wall Street expects DocuSign's revenue and billings to be $1.317 billion and $1.529 billion, respectively.
What is DocuSign's stock price now?
In premarket trading today, DocuSign stock was down about 6.9 percent at $225.39. The stock has risen by 12.7 percent in the last five days and 423.3 percent in the last year. DocuSign stock is trading 16.6 percent below its 52-week high of $290.23 and 347.3 percent above its 52-week low of $54.10. Year-to-date, the stock has risen by 226.6 percent.
DOCU stock in the S&P 500
DocuSign stock fell about 9 percent yesterday after gaining more than 200 percent this year. The year-to-date surge has pushed the company’s market capitalization to $45 billion, which is larger than about 70 percent of S&P 500 companies. DocuSign benefited amid the coronavirus pandemic, as the crisis forced people to maintain social distance and digitally sign documents.
Should I buy DocuSign stock?
Currently, analysts' DocuSign stock price forecast is $229.31, which suggests a 5.2 percent downside. Their highest target price for DocuSign is $300, which implies a 24 percent upside, and their lowest target price is $161, which suggests a 33.5 percent downside. Of the 15 Wall Street analysts who track DocuSign, nine recommend "buy" and six recommend "hold." None of the analysts recommend selling the stock.