DocuSign (NASDAQ:DOCU) Shares Down 4% – Should You Sell?

DocuSign, Inc. (NASDAQ:DOCU)’s stock price dropped 4% on Wednesday . The stock traded as low as $81.86 and last traded at $81.92. Approximately 435,399 shares traded hands during trading, a decline of 85% from the average daily volume of 2,867,433 shares. The stock had previously closed at $85.30.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on DOCU. Bank of America increased their price objective on DocuSign from $60.00 to $68.00 and gave the company a “neutral” rating in a report on Friday, September 6th. Citigroup increased their price target on shares of DocuSign from $86.00 to $87.00 and gave the stock a “buy” rating in a research note on Friday, September 6th. Robert W. Baird increased their price target on shares of DocuSign from $55.00 to $59.00 and gave the stock a “neutral” rating in a research note on Friday, September 6th. Wells Fargo & Company increased their price target on shares of DocuSign from $48.00 to $50.00 and gave the stock an “underweight” rating in a research note on Friday, September 6th. Finally, Needham & Company LLC restated a “hold” rating on shares of DocuSign in a research report on Friday, September 6th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $65.80.

DocuSign Price Performance

The firm has a 50-day simple moving average of $70.63 and a two-hundred day simple moving average of $60.66. The company has a market cap of $16.49 billion, a PE ratio of 18.00, a P/E/G ratio of 9.05 and a beta of 0.90.

DocuSign (NASDAQ:DOCU) last released its quarterly earnings results on Thursday, September 5th. The company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.17. The company had revenue of $736.03 million during the quarter, compared to the consensus estimate of $727.20 million. DocuSign had a return on equity of 16.18% and a net margin of 34.56%. DocuSign’s revenue was up 7.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.09 earnings per share. Equities research analysts forecast that DocuSign, Inc. will post 1.01 EPS for the current year.

Insider Activity at DocuSign

In other DocuSign news, insider James P. Shaughnessy sold 7,500 shares of the company’s stock in a transaction dated Wednesday, October 9th. The shares were sold at an average price of $67.83, for a total value of $508,725.00. Following the completion of the transaction, the insider now directly owns 43,301 shares of the company’s stock, valued at $2,937,106.83. This represents a 14.76 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Robert Chatwani sold 14,799 shares of the firm’s stock in a transaction that occurred on Wednesday, September 18th. The shares were sold at an average price of $55.46, for a total value of $820,752.54. Following the sale, the insider now owns 70,748 shares of the company’s stock, valued at approximately $3,923,684.08. This trade represents a 17.30 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 69,558 shares of company stock worth $4,272,768. 1.66% of the stock is owned by insiders.

Institutional Trading of DocuSign

Several hedge funds and other institutional investors have recently bought and sold shares of DOCU. J.W. Cole Advisors Inc. lifted its holdings in DocuSign by 2.0% in the third quarter. J.W. Cole Advisors Inc. now owns 7,946 shares of the company’s stock worth $493,000 after acquiring an additional 155 shares during the last quarter. Resonant Capital Advisors LLC grew its stake in DocuSign by 0.9% during the 3rd quarter. Resonant Capital Advisors LLC now owns 17,516 shares of the company’s stock worth $1,088,000 after buying an additional 157 shares during the last quarter. Optimist Retirement Group LLC increased its position in DocuSign by 3.8% in the third quarter. Optimist Retirement Group LLC now owns 4,416 shares of the company’s stock worth $274,000 after buying an additional 161 shares during the period. V Square Quantitative Management LLC lifted its stake in DocuSign by 6.0% in the third quarter. V Square Quantitative Management LLC now owns 3,019 shares of the company’s stock valued at $187,000 after buying an additional 172 shares during the last quarter. Finally, Dakota Wealth Management grew its position in shares of DocuSign by 0.8% during the second quarter. Dakota Wealth Management now owns 23,022 shares of the company’s stock worth $1,232,000 after acquiring an additional 181 shares during the last quarter. 77.64% of the stock is owned by 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.