DocuSign (NASDAQ:DOCU) Sees Strong Trading Volume on Analyst Upgrade

Shares of DocuSign, Inc. (NASDAQ:DOCU) saw unusually-strong trading volume on Monday after Wells Fargo & Company raised their price target on the stock from $65.00 to $67.00. Wells Fargo & Company currently has an underweight rating on the stock. Approximately 3,866,800 shares were traded during trading, an increase of 53% from the previous session’s volume of 2,520,337 shares.The stock last traded at $78.33 and had previously closed at $75.28.

DOCU has been the subject of several other research reports. JMP Securities reaffirmed a “market outperform” rating and issued a $124.00 target price on shares of DocuSign in a research note on Tuesday, June 3rd. Needham & Company LLC reaffirmed a “hold” rating on shares of DocuSign in a research note on Friday. Jefferies Financial Group lowered their target price on shares of DocuSign from $115.00 to $105.00 and set a “buy” rating for the company in a research note on Monday, March 31st. JPMorgan Chase & Co. raised shares of DocuSign from an “underweight” rating to a “neutral” rating and upped their target price for the company from $70.00 to $75.00 in a research note on Monday, March 10th. Finally, HSBC upgraded shares of DocuSign from a “reduce” rating to a “hold” rating and set a $70.00 price target for the company in a report on Friday, April 11th. One equities research analyst has rated the stock with a sell rating, eleven have given a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $88.77.

Insider Buying and Selling

In other news, insider James P. Shaughnessy sold 7,500 shares of the stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $81.31, for a total value of $609,825.00. Following the transaction, the insider now directly owns 45,875 shares of the company’s stock, valued at $3,730,096.25. This represents a 14.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Blake Jeffrey Grayson sold 8,000 shares of the stock in a transaction dated Tuesday, April 15th. The shares were sold at an average price of $76.09, for a total transaction of $608,720.00. Following the completion of the transaction, the chief financial officer now directly owns 86,156 shares in the company, valued at $6,555,610.04. The trade was a 8.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 47,851 shares of company stock worth $3,912,239. 1.01% of the stock is owned by insiders.

Hedge Funds Weigh In On DocuSign

Large investors have recently modified their holdings of the stock. FMR LLC increased its position in DocuSign by 178.2% during the fourth quarter. FMR LLC now owns 6,101,024 shares of the company’s stock worth $548,726,000 after acquiring an additional 3,908,139 shares during the period. American Century Companies Inc. increased its position in DocuSign by 3.1% during the first quarter. American Century Companies Inc. now owns 5,477,758 shares of the company’s stock worth $445,890,000 after acquiring an additional 162,299 shares during the period. Jericho Capital Asset Management L.P. increased its position in DocuSign by 34.0% during the fourth quarter. Jericho Capital Asset Management L.P. now owns 4,754,753 shares of the company’s stock worth $427,642,000 after acquiring an additional 1,205,500 shares during the period. Renaissance Technologies LLC increased its position in DocuSign by 4.9% during the fourth quarter. Renaissance Technologies LLC now owns 4,363,292 shares of the company’s stock worth $392,434,000 after acquiring an additional 205,304 shares during the period. Finally, Geode Capital Management LLC increased its position in DocuSign by 7.2% during the fourth quarter. Geode Capital Management LLC now owns 3,732,363 shares of the company’s stock worth $335,147,000 after acquiring an additional 249,179 shares during the period. 77.64% of the stock is owned by institutional investors.

DocuSign Price Performance

The firm has a market capitalization of $15.91 billion, a P/E ratio of 16.20, a price-to-earnings-growth ratio of 6.94 and a beta of 1.14. The business’s 50-day moving average is $81.98 and its 200 day moving average is $86.28.

DocuSign (NASDAQ:DOCU) last announced its quarterly earnings data on Thursday, June 5th. The company reported $0.90 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.81 by $0.09. The firm had revenue of $763.65 million for the quarter, compared to the consensus estimate of $748.79 million. DocuSign had a net margin of 34.73% and a return on equity of 14.90%. The business’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.82 earnings per share. Analysts anticipate that DocuSign, Inc. will post 1.17 EPS for the current fiscal year.

DocuSign announced that its Board of Directors has initiated a stock repurchase plan on Thursday, June 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 6.6% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s management believes its stock is undervalued.

DocuSign Company Profile

DocuSign, Inc provides electronic signature solution in the United States and internationally. The company provides 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; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.