DocuSign Inc (NASDAQ:DOCU) shares are tumbling on Monday as the company faces a downgrade from Jefferies, which also slashed its price target. This move occurs during a broader market downturn, with the Nasdaq is down 1.09% while the S&P 500 has shed 0.85%.
Jefferies Downgrades DocuSign To Hold
Jefferies analyst Brent Thill downgraded DocuSign from Buy to Hold and lowered the price target from $105 to $45 on Monday, sending shares lower.
The stock carries a consensus Hold Rating with an average price target of $81.00. Recent analyst moves include:
- Jefferies: Downgraded to Hold (Lowers Target to $45.00) (Feb. 23)
- BTIG: Buy (Lowers Target to $70.00) (Feb. 18)
- RBC Capital: Sector Perform (Lowers Target to $70.00) (Jan. 5)
The Technical Picture
Over the past year, DocuSign shares have dropped 50.71%, marking a steep decline for the stock. It's now trading well below all major moving averages, reinforcing the bearish momentum. The stock sits 15.6% under its 20‑day SMA and a sharp 42.6% below its 200‑day SMA.
The technical picture shows an oversold RSI of 28.80, which suggests the selling pressure may be nearing exhaustion. At the same time, the MACD has just flashed a bullish crossover, hinting at the possibility of short‑term upside despite the broader downtrend.
The Technology sector is struggling today, down 1.36% and ranking among the weakest performers in the market. DocuSign's 7.38% drop stands out even more against that backdrop, underscoring the stock's own challenges and the added weight of a negative analyst update.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for DocuSign, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: Moderate (Score: 58.14) — Reflects a balanced valuation in current market conditions.
- Growth Rank: Strong (Score: 63.26) — Indicates potential for revenue and earnings growth.
- Momentum Rank: Weak (Score: 3.63) — Stock is underperforming the broader market.
The Verdict: DocuSign‘s Benzinga Edge signal reveals mixed signals. While the Growth rank indicates potential, the extremely low Momentum score suggests current market challenges are significant.
DOCU Price Action: DocuSign shares were down 6.92% at $41.40 at the time of publication on Monday. The stock is trading at a new 52-week low, according to Benzinga Pro.
Image: Shutterstock
