On Monday, July 06, 2021, a Docusign Weekly Options trade was recommended
to our members based on several catalysts.
of the Original Docusign Weekly Options Recommendation Further
Also, Here Are
Several New Catalysts Helping Docusign Stock Growth.....
Inc. is estimated to report earnings on September 02, 2021.
projected to report earnings of $0.39 per share, which would represent
year-over-year growth of 129.41%. The most recent consensus estimate is calling
for quarterly revenue of $482.48 million, up 40.99% from the year-ago period.
the full year, Consensus Estimates suggest analysts are expecting earnings of
$1.68 per share and revenue of $2.03 billion. These totals would mark changes
of +86.67% and +39.39%, respectively, from last year.
been some bullish buying in DocuSign options contracts. Last week saw the USD
310 calls, expiring on July 23, and volume quite high.
one of the holdings in the ARK Innovation ETF. The stock ranks as the No. 14
holding, with a 2.75% weighting. DocuSign trades alongside high-profile
companies in this fund, including the likes of Tesla, which is the top holding
with a 10.14% weighting, payments platform Square with 5.12% and cryptocurrency
exchange Coinbase with 4.27%.
Docusign Weekly Options Trade.....
** OPTION TRADE: Buy DOCU
JUL 23 2021 285.000 CALLS at approximately $5.90.
(Actually bought for $6.20)
Docusign Weekly Options Trade
On Tuesday, July 06, 2021, “Weekly Options Members,” entered the Docusign Weekly Options trade mentioned
above for $6.20, shortly after the market opened.
By expiry of the option,
Friday, July 23, 2021, the price of the option hit $23.18 – up
It is very likely that a new
Docusign Weekly Options trade, moving forward, as the catalysts listed below
are still applicable.
Join us and see what we are
Contracts and Revenue.....
One of the
other key factors about DocuSign, is 88 percent of its revenue comes from its
enterprise and commercial customers. These are large corporate customers
businesses that have multiple employees, probably in multiple locations. Customers
close to doubled over the past couple of years.
dollar-weighted contract average length is about 18 months. Most contracts are
under 12 months or at 12 months, and then about a third of them are over 12
months. One of the things that could play out is as envelopes are used up,
that's something that DocuSign knows, because this is cloud software, so that
gives the salesperson an opportunity to come back a couple of months later, 3,
6, 9 months before the contract is up; which provides them an opportunity to
come back and talk to them about upping their contract volume, or even upping
it from a functionality standpoint.
many companies that are in their first contract, and their first time they've
estimated the envelopes. The other thing that happens, is look at this net
dollar retention, which is just going up over time and this is really impacted
by larger companies signing on the DocuSign, and realizing the benefits across
their organization for more use cases and more departments, and potentially
even integrating it into existing infrastructure and process workflows.
Enterprise and commercial revenue makes up 88% of
Total customers are 988,000, almost 1
million customers. Interestingly enough, only 14% of its customers are
enterprise in commercial, but they make up 88% of the revenue.
DocuSign manages contracts from
beginning to end, and executing them in a corporate environment. This second
act for DocuSign is really focused on its corporate customer and digitizing and
making contracts like a living piece of software versus just a piece of paper.
That's all about corporate customers.
Almost every single department across
the enterprise has agreement as part of their doing business.
3. Inflationary Considerations.....
has crept up above 3% for the first time in over a decade.
four-quarter revenue growth year-over-year is accelerating. Inflationary
periods now kick in and the salesperson comes back and says, hey, you need to
renegotiate your contract and it has gone up by five percent or went up by
seven percent. There is no way the company is going to say, well, we're not
using the product as much as we thought we can get by on paper signatures.
Nobody is going to say that; therefore, DocuSign is well set up, in any
environment going forward even in an inflationary period.
DocuSign has been on a roll
with its flagship e-signature software as businesses scrambled to adapt to
remote working environments. But this e-signature specialist has much more
available to customers to enhance the overall agreement process. This is a huge
untapped market opportunity for the company.
a leader ranking from Gartner for its contract management project. This is the
second year in a row that DocuSign has been ranked as a leader. This year, it
placed highest among 15 vendors related on the "ability to execute
axis" and it ranked highly on the "completeness of vision" axis.
this matter? E-signature is really just the ticket to entry for this tech
subscription company. Once customers are in doing this e-signature thing,
they're looking to see what other benefits this software can bring. The market
for this cloud opportunity beyond e-signature is just as big as the e-signature
market. The software that it has enables companies to do more with their
contracts. Think about how contracts are handled today. Almost any department
can sign a contract, whether it's for their property maintenance or for legal
services or development services, or even freelancers. These end up getting
shared all over the company in shared drives, Word docs, PDF files, maybe even
e-signature market is $26 billion. This is essentially annual revenue that is
there for an opportunity. Notary and identification services, $4 billion. This
broader Cloud agreement, $17 billion, and then, just the contracts platform
overall is $3 billion. These three on the bottom, they've not released any
progress against these, partly because this e-signature business has been
growing so fast for them. This company has got a ton of opportunity ahead of
5. Return to
The U.S. government is looking at this Independence Day weekend to
largely mark the country’s return to normalcy after over a year of disruption
by the Covid-19 pandemic. About 46% of the U.S. population is now fully
vaccinated, per the U.S. CDC and mask mandates have also largely been lifted
for vaccinated people, signaling the government’s confidence in the recovery.
Companies are likely to adopt a hybrid working model post the pandemic
giving employees some flexibility to work remotely. Moreover, with the broader
trend of greater digitization, those software companies which are focused on
connectivity, collaboration, and cybersecurity, should stand to benefit. And,
DocuSign, a company focused on e-signature solutions, has been the strongest
performer, with its stock rising by 25% year-to-date.
The trend of working from home appears to be here to stay even post the
pandemic, as companies look to cut costs, access a larger base of talent, and
give employees more flexibility. This should ensure that demand holds up in the
raised their price objective on DocuSign from $260.00 to $290.00 and gave the
stock an “outperform” rating in a research note on Friday, June 18th.
DOCU has also been the subject of a
number of research reports.....
upgraded DocuSign from a "d" rating to a "c-" rating in a
research report on Thursday, June 3rd.
Stanley increased their price target on DocuSign from $290.00 to $295.00 and
gave the company an “overweight” rating in a research note on Friday, June 4th.
- Bank of
America reaffirmed a "buy" rating and issued a $250.00 target price
on shares of DocuSign in a report on Wednesday, April 14th.
lowered their target price on DocuSign from $300.00 to $260.00 and set an
"outperform" rating for the company in a report on Friday, June 4th.
- Finally, Royal Bank of Canada started coverage on DocuSign in a research
note on Friday, June 11th. They set an “outperform” rating for the company.
Street analysts have issued ratings and price targets for DocuSign in the last
12 months. Their average twelve-month price target is $272.29, predicting that
the stock has a possible downside of 2.34%, or that analysts will be looking to
re-assess their calls. The high price target for DOCU is $325.00 and the low
price target for DOCU is $215.00. There are currently 3 hold ratings and 17 buy
ratings for the stock, resulting in a consensus rating of "Buy."