Stock Traders Purchase Large Volume of Docusign Call Options (NASDAQ:DOCU)

Docusign Inc. (NASDAQ:DOCU) was the recipient of unusually large options trading on Wednesday. Stock traders bought 16,197 call options on the company. Thisisanincreaseofapproximately61% compared to the typical volume of 10,082 call options.

Docusign Trading Up 3.0%

Shares of NASDAQ:DOCU opened at $74.68 on Thursday. The company has a market capitalization of $15.09 billion, a PE ratio of 14.12, a PEG ratio of 27.06 and a beta of 1.01. Docusign has a 12-month low of $54.31 and a 12-month high of $107.86. The business has a 50 day moving average of $75.37 and a two-hundred day moving average of $79.97.

Docusign (NASDAQ:DOCU) last posted its quarterly earnings data on Thursday, June 5th. The company reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.81 by $0.09. The business had revenue of $763.65 million during the quarter, compared to analysts’ expectations of $748.79 million. Docusign had a return on equity of 14.27% and a net margin of 36.50%.The business’s revenue was up 7.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.82 earnings per share. Docusign has set its FY 2026 guidance at EPS. Q2 2026 guidance at EPS. Equities research analysts predict that Docusign will post 1.17 earnings per share for the current fiscal year.

Docusign announced that its board has approved a share buyback plan on Thursday, June 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to repurchase up to 6.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

Analyst Upgrades and Downgrades

A number of research firms recently commented on DOCU. Wall Street Zen downgraded Docusign from a “buy” rating to a “hold” rating in a report on Saturday, August 2nd. JPMorgan Chase & Co. decreased their target price on Docusign from $81.00 to $77.00 and set a “neutral” rating for the company in a report on Friday, June 6th. Robert W. Baird decreased their target price on Docusign from $93.00 to $85.00 and set a “neutral” rating for the company in a report on Friday, June 6th. UBS Group decreased their target price on Docusign from $85.00 to $80.00 and set a “neutral” rating for the company in a report on Friday, June 6th. Finally, Citigroup decreased their price target on Docusign from $115.00 to $110.00 and set a “buy” rating for the company in a report on Monday, June 9th. Four investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $89.77.

Insider Transactions at Docusign

In related news, CFO Blake Jeffrey Grayson sold 15,143 shares of Docusign stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $74.80, for a total transaction of $1,132,696.40. Following the completion of the sale, the chief financial officer owned 110,723 shares of the company’s stock, valued at $8,282,080.40. The trade was a 12.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Teresa Briggs sold 534 shares of Docusign stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $74.37, for a total value of $39,713.58. Following the sale, the director directly owned 8,805 shares of the company’s stock, valued at $654,827.85. This trade represents a 5.72% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 78,552 shares of company stock worth $5,983,631. 1.01% of the stock is owned by company insiders.

Institutional Trading of Docusign

A number of institutional investors and hedge funds have recently made changes to their positions in DOCU. Dimensional Fund Advisors LP increased its position in shares of Docusign by 23.6% in the fourth quarter. Dimensional Fund Advisors LP now owns 822,314 shares of the company’s stock valued at $73,975,000 after buying an additional 156,841 shares in the last quarter. MML Investors Services LLC increased its position in shares of Docusign by 38.9% during the fourth quarter. MML Investors Services LLC now owns 16,711 shares of the company’s stock worth $1,503,000 after purchasing an additional 4,677 shares in the last quarter. TD Waterhouse Canada Inc. increased its position in shares of Docusign by 34.5% during the fourth quarter. TD Waterhouse Canada Inc. now owns 557 shares of the company’s stock worth $50,000 after purchasing an additional 143 shares in the last quarter. OneDigital Investment Advisors LLC purchased a new stake in shares of Docusign during the fourth quarter worth approximately $238,000. Finally, Stifel Financial Corp increased its position in shares of Docusign by 8.2% during the fourth quarter. Stifel Financial Corp now owns 85,637 shares of the company’s stock worth $7,702,000 after purchasing an additional 6,525 shares in the last quarter. 77.64% of the stock is currently owned by hedge funds and other institutional investors.

About Docusign

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.