The shares of DocuSign Inc (NASDAQ:DOCU) are down 6.5% to trade at $66.46 at last glance, brushing off adjusted third-quarter earnings of $1.01 per share on $818.40 million in revenue, both of which surpassed analyst estimates. The software concern also raised its full-year sales guidance, though Wedbush noted some may consider its outlook “conservative.”
The stock picked up four price-target cuts in response, with UBS, Wedbush, and Wells Fargo lowering their objectives to $75 from $85. The brokerage bunch is already skeptical, with 14 of 19 brokerages in coverage sporting a lukewarm "hold" rating.
DOCU is set to snap a three-day win streak with its worst single-day percentage loss since September. The equity has shed more than 26% so far this year and earlier hit a 52-week low of $63.41, with rallies contained by overhead pressure at the 60-day moving average.
Puts have been more popular than usual, per the security's 10-day put/call volume ratio over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 89% of readings from the past year.
Drilling down to today's activity, 15,000 calls and 16,000 calls have already crossed the tape, which is 14 times the volume typically seen at this point. The most active contract is the expiring weekly 12/5 65-strike put, where new positions are currently being opened.
