DocuSign (NASDAQ:DOCU) Sees Large Volume Increase After Analyst Upgrade

DocuSign, Inc. (NASDAQ:DOCU) shares saw unusually-high 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.

Several other brokerages also recently issued reports on DOCU. Needham & Company LLC reiterated a “hold” rating on shares of DocuSign in a research report on Friday. Citigroup lifted their price target on DocuSign from $113.00 to $115.00 and gave the company a “buy” rating in a report on Friday, March 14th. Royal Bank of Canada reiterated a “sector perform” rating and set a $90.00 price target on shares of DocuSign in a research report on Friday, March 14th. UBS Group lowered their price objective on shares of DocuSign from $85.00 to $80.00 and set a “neutral” rating for the company in a research report on Friday. Finally, Hsbc Global Res raised shares of DocuSign from a “moderate sell” rating to a “hold” rating in a research note on Friday, April 11th. One analyst has rated the stock with a sell rating, eleven have issued a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $89.15.

Insider Transactions at DocuSign

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of DOCU. Kestra Investment Management LLC bought a new stake in shares of DocuSign in the 4th quarter valued at $30,000. Hemington Wealth Management grew its stake in DocuSign by 318.1% in the first quarter. Hemington Wealth Management now owns 347 shares of the company’s stock valued at $28,000 after acquiring an additional 264 shares during the period. Banque Transatlantique SA acquired a new position in DocuSign in the first quarter valued at about $26,000. Golden State Wealth Management LLC increased its holdings in shares of DocuSign by 519.4% in the first quarter. Golden State Wealth Management LLC now owns 384 shares of the company’s stock worth $31,000 after acquiring an additional 322 shares in the last quarter. Finally, First Horizon Advisors Inc. raised its position in shares of DocuSign by 102.6% during the fourth quarter. First Horizon Advisors Inc. now owns 397 shares of the company’s stock worth $36,000 after purchasing an additional 201 shares during the period. Institutional investors and hedge funds own 77.64% of the company’s stock.

DocuSign Price Performance

The company has a market cap of $15.83 billion, a price-to-earnings ratio of 16.13, a price-to-earnings-growth ratio of 6.94 and a beta of 1.14. The stock has a 50-day moving average price of $82.08 and a 200 day moving average price of $86.32.

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

DocuSign announced that its Board of Directors has approved a share repurchase program on Thursday, June 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 6.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

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.