Shares of DocuSign (NASDAQ:DOCU) are down 1% to trade at $65.27, pulling back from earlier gains despite the company posting a top- and bottom-line beat for its second-quarter and a raised full-year outlook. DocuSign CEO Allan Thygesen highlighted the company's AI expansion, with its Intelligent Agreement Management (IAM) driving higher adoption and revenue.
No fewer than six analysts have hiked their price objective in response, including Morgan Stanley to $75 from $69. There is plenty of room for more bull notes, however, as 16 of the 20 in coverage carry a "hold" or "sell" recommendation on DOCU.
Shorts are still in control. The 15.42 million shares sold short account for 8.12% of the stock's available float and would take short sellers four days to cover their positions, at DOCU's average pace of trading.
DocuSign stock also carries a Schaeffer's Volatility Scorecard (SVS) of 90 out of 100, indicating the equity has tended to exceed option traders' volatility expectations during the past year.
The stock's early morning gains had the shares trading near its January highs, but its subsequent pullback now has the equity testing its 20-day moving average. Despite today's slide, DOCU is headed for its fifth weekly win in six.
