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DocuSign, Inc. (DOCU) Stock Analysis

Recovery setup

SellVALUE-TRAP 2/5High Confidence

Technology · Software - Application

Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $45.94 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 9.7): -1.5; Concentration risk — Product: eSignature product.

DocuSign provides an Intelligent Agreement Management (IAM) platform and the leading e-signature solution to over 1.8 million customers globally, with 98% of fiscal 2026 revenue from subscriptions. No single customer exceeded 10% of total revenue, and the company describes a... Read more

$45.94+17.8% A.UpsideScore 5.1/10#81 of 96 Software - Application
Stop $42.76Target $54.15(analyst − 10%)A.R:R 1.9:1
Analyst target$60.16+31.0%18 analysts
$54.15our TP
$45.94price
$60.16mean
$90

Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $45.94 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 9.7): -1.5; Concentration risk — Product: eSignature product. Chart setup: Death cross but MACD improving, RSI 60. Score 5.1/10, high confidence.

Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 35d clear, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (4/4)
Risks
Concentration risk — Product: eSignature product
Leverage penalty (D/E 9.7): -1.5
Below 200-MA, MA slope -7.0%/30d (confirmed downtrend)

Key Metrics

P/E (TTM)31.7
P/E (Fwd)9.3
Mkt Cap$9.1B
EV/EBITDA25.0
Profit Mgn9.6%
ROE15.8%
Rev Growth7.8%
Beta0.99
DividendNone
Rating analysts29

Quality Signals

Piotroski F7/9

Options Flow

P/C0.76neutral
IV68%elevated
Max Pain$35-23.8% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHProducteSignature product
    10-K Item 1A: 'Sales of subscriptions to our eSignature product account for the substantial majority of our subscription and professional services revenue'

Material Events(8-K, last 90d)

  • 2026-03-06Item 5.02LOW
    Brian Roberts appointed to DocuSign Board as independent Class I director effective March 5, 2026, filling an existing vacancy. No reason for vacancy cited. Term expires at 2028 Annual Meeting.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
1.8
Value Rank
5.6
Quality Rank
5.9
GatesMomentum 4.4<4.5Death cross (50MA < 200MA)A.R:R 1.9 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 35d clearSEMI CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
60 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $42.38Resistance $49.43

Price Targets

$43
$54
A.Upside+17.9%
A.R:R1.9:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Momentum score 4.4/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-06-04 (35d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DOCU stock a buy right now?

Sell if holding. Momentum 4.4/10 is below the 5.0 floor at $45.94 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 9.7): -1.5; Concentration risk — Product: eSignature product. Chart setup: Death cross but MACD improving, RSI 60. Prior stop was $42.76. Score 5.1/10, high confidence.

What is the DOCU stock price target?

Take-profit target: $54.15 (+17.8% upside). Prior stop was $42.76. Stop-loss: $42.76.

What are the risks of investing in DOCU?

Concentration risk — Product: eSignature product; Leverage penalty (D/E 9.7): -1.5; Below 200-MA, MA slope -7.0%/30d (confirmed downtrend).

Is DOCU overvalued or undervalued?

DocuSign, Inc. trades at a P/E of 31.7 (forward 9.3). TrendMatrix value score: 7.0/10. Verdict: Sell.

What do analysts say about DOCU?

29 analysts cover DOCU with a consensus score of 3.5/5. Average price target: $60.

What does DocuSign, Inc. do?DocuSign provides an Intelligent Agreement Management (IAM) platform and the leading e-signature solution to over 1.8...

DocuSign provides an Intelligent Agreement Management (IAM) platform and the leading e-signature solution to over 1.8 million customers globally, with 98% of fiscal 2026 revenue from subscriptions. No single customer exceeded 10% of total revenue, and the company describes a diverse customer base. Standalone eSignature remains the majority of revenue as IAM (about 10.8% of ARR) is in early growth phase.

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