DocuSign (NASDAQ:DOCU) Sees Large Volume Increase on Strong Earnings

DocuSign, Inc. (NASDAQ:DOCU) saw unusually-strong trading volume on Friday following a stronger than expected earnings report. Approximately 3,127,548 shares traded hands during mid-day trading, a decline of 17% from the previous session’s volume of 3,755,496 shares.The stock last traded at $49.32 and had previously closed at $52.13.

The company reported $0.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.06. The business had revenue of $687.69 million for the quarter, compared to analyst estimates of $677.56 million. DocuSign had a negative net margin of 2.69% and a positive return on equity of 3.70%. The firm’s revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter last year, the business posted ($0.18) EPS.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on DOCU shares. Wells Fargo & Company reduced their price objective on DocuSign from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research report on Friday. Citigroup boosted their target price on shares of DocuSign from $78.00 to $81.00 and gave the stock a “buy” rating in a report on Thursday. 22nd Century Group reissued a “maintains” rating on shares of DocuSign in a research note on Friday, June 9th. Royal Bank of Canada reaffirmed a “sector perform” rating and set a $59.00 target price on shares of DocuSign in a report on Friday. Finally, JPMorgan Chase & Co. increased their price target on DocuSign from $48.00 to $50.00 in a research note on Friday, June 9th. Four investment analysts have rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the stock. According to data from MarketBeat.com, DocuSign presently has a consensus rating of “Hold” and a consensus target price of $61.79.

Insider Activity at DocuSign

In related news, Director Enrique T. Salem sold 2,500 shares of the company’s stock in a transaction that occurred on Friday, July 7th. The stock was sold at an average price of $50.02, for a total value of $125,050.00. Following the transaction, the director now owns 156,140 shares in the company, valued at $7,810,122.80. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, Director Enrique T. Salem sold 2,500 shares of DocuSign stock in a transaction that occurred on Friday, July 7th. The shares were sold at an average price of $50.02, for a total value of $125,050.00. Following the completion of the transaction, the director now directly owns 156,140 shares in the company, valued at approximately $7,810,122.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Stephen Shute sold 100,315 shares of the stock in a transaction dated Thursday, July 6th. The stock was sold at an average price of $49.20, for a total value of $4,935,498.00. The disclosure for this sale can be found here. 17.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On DocuSign

A number of large investors have recently modified their holdings of the company. MAI Capital Management boosted its position in DocuSign by 1.0% during the fourth quarter. MAI Capital Management now owns 16,417 shares of the company’s stock valued at $910,000 after buying an additional 157 shares during the period. Meiji Yasuda Asset Management Co Ltd. boosted its stake in shares of DocuSign by 1.9% during the second quarter. Meiji Yasuda Asset Management Co Ltd. now owns 8,965 shares of the company’s stock valued at $514,000 after purchasing an additional 164 shares during the period. Integrated Wealth Concepts LLC grew its holdings in shares of DocuSign by 3.8% in the fourth quarter. Integrated Wealth Concepts LLC now owns 5,009 shares of the company’s stock worth $278,000 after purchasing an additional 182 shares during the last quarter. Malaga Cove Capital LLC increased its stake in shares of DocuSign by 2.9% in the second quarter. Malaga Cove Capital LLC now owns 7,209 shares of the company’s stock worth $368,000 after buying an additional 200 shares during the period. Finally, Utah Retirement Systems increased its holdings in DocuSign by 0.6% during the 2nd quarter. Utah Retirement Systems now owns 34,587 shares of the company’s stock valued at $1,984,000 after purchasing an additional 200 shares during the period. 77.96% of the stock is owned by hedge funds and other institutional investors.

DocuSign Stock Performance

The stock has a market capitalization of $10.16 billion, a P/E ratio of -143.45, a price-to-earnings-growth ratio of 11.03 and a beta of 0.90. The stock has a 50-day moving average price of $50.83 and a two-hundred day moving average price of $53.47.

About DocuSign

DocuSign, Inc provides electronic signature solution in the United States and internationally. The company provides DocuSign e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.