This weekend, I put one of my houses up for sale. Even though I was 100 miles from my property, I was able to review, sign, and deliver five documents in about two minutes, using DocuSign.
DocuSign has gained about 195% year to date, and yet after a recent pullback, the stock is well off its highs.
DocuSign, which traded as high as $290 on September 2nd, closed on Friday at $218. That's a 24% discount in just over a month, but the stock remains in its uptrend. The stock briefly slipped below its 50 day moving average, in red, but now DocuSign is trading above that key indicator.
DocuSign also received a buy signal from its MACD (moving average convergence divergence) indicator, shaded in yellow. That buy signal occurred on September 29th.
DocuSign is trading on slightly below average volume, shown in the rectangle. This is normal during a consolidation, as the stock regains its footing after a volatile month.
The kind of convenience that DocuSign provides should outlive the Covid-19 pandemic. However, the stock's $40 billion market cap is already pricing in a lot of positive news. For that reason, I'm buying DocuSign for a trade, not holding it as a long term investment.
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Ed Ponsi is the managing director of Barchetta Capital Management, and is the author of three books for publisher Wiley Finance. A dynamic public speaker, Ed has made appearances around the world, in such diverse locations as Singapore, Dubai, London, and New York. For more information about Ed and his work, click here.