DocuSign (DOCU) Stock: Why Its Trending Today

By Amit Chowdhry ● Jul 21, 2022
  • The DocuSign Inc (NASDAQ: DOCU) stock is trending today. This is why.

The DocuSign Inc (NASDAQ: DOCU) stock is trending today as the stock price is trading slightly below the previous close during intraday trading. Investors have been responding to a bearish research report.

Piper Sandler analyst Rob Owens had downgraded DocuSign to an “Underweight” rating from a “Neutral” rating while reducing the price target from $65 to $54. Owens adjusted the rating while citing an elevated risk profile amid macro headwinds and the CEO transition. Plus Owens is concerned about execution and market challenges.

“Reengineering the sales organization to adapt to the lower growth environment has proven to be tricky, with sales reps leaving the company to look for greener pastures,” wrote Owens in a research note. “While we believe a leadership change is likely necessary to achieve the balanced, longer-term growth and profitability profile, we also believe this adds further to execution risk over the next few quarters at least. Although expectations were meaningfully reset coming into the year, another billings guide down in 1Q shows that visibility remains cloudy, especially with a worsening macro and sales rep turnover.”

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.