Docusign Inc. (NASDAQ:DOCU) Sees Large Increase in Short Interest

Docusign Inc. (NASDAQ:DOCU) was the recipient of a large growth in short interest during the month of February. As of February 13th, there was short interest totaling 14,053,218 shares, a growth of 58.5% from the January 29th total of 8,866,066 shares. Based on an average daily trading volume, of 5,560,267 shares, the short-interest ratio is presently 2.5 days. Approximately 7.1% of the shares of the company are short sold. Approximately 7.1% of the shares of the company are short sold. Based on an average daily trading volume, of 5,560,267 shares, the short-interest ratio is presently 2.5 days.

Docusign Price Performance

Shares of NASDAQ:DOCU traded down $0.65 on Friday, hitting $45.07. The company’s stock had a trading volume of 18,041,867 shares, compared to its average volume of 5,176,565. The company has a market capitalization of $9.03 billion, a PE ratio of 31.52, a PEG ratio of 1.99 and a beta of 1.00. The company has a 50-day simple moving average of $56.08 and a 200 day simple moving average of $66.63. Docusign has a 1 year low of $40.16 and a 1 year high of $94.67.

Analysts Set New Price Targets

DOCU has been the topic of a number of analyst reports. Piper Sandler lowered their target price on shares of Docusign from $90.00 to $75.00 and set a “neutral” rating on the stock in a report on Friday, December 5th. Needham & Company LLC reiterated a “hold” rating on shares of Docusign in a research report on Wednesday, December 17th. Jefferies Financial Group cut Docusign from a “buy” rating to a “hold” rating and dropped their price objective for the stock from $105.00 to $45.00 in a report on Monday, February 23rd. Royal Bank Of Canada cut their target price on Docusign from $95.00 to $70.00 and set a “sector perform” rating for the company in a research note on Monday, January 5th. Finally, Evercore decreased their price target on Docusign from $92.00 to $80.00 and set an “in-line” rating on the stock in a research report on Friday, December 5th. Five analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $78.80.

Key Headlines Impacting Docusign

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Nvidia CEO comments eased fears that AI will cannibalize enterprise software, sparking a session where DocuSign and other software names traded up — a sentiment boost that can help stabilize shares if sustained. DocuSign, MongoDB, Workiva, Elastic, and PagerDuty Stocks Trade Up, What You Need To Know
• Neutral Sentiment: AAII published a comparative piece weighing DocuSign vs. EverCommerce, useful for investors doing relative-value or thematic SaaS allocations but not a near-term catalyst. Which Is a Better Investment, DocuSign, Inc. or EverCommerce Inc. Stock?
• Neutral Sentiment: Reported short-interest figures for February appear to contain errors (showing 0 shares/NaN changes) and therefore offer no clear signal about bearish positioning — treat that data as unreliable until restated. (Data source summary)
• Negative Sentiment: A MarketBeat piece framing the software sell-off singled out DocuSign as exposed to AI-driven commoditization and product concentration risks, arguing the company lacks the durable moats that protect other AI beneficiaries — this narrative pressures valuations and investor confidence. AI Is Separating Software Winners From Losers, 2 Experts Explain (DOCU)
• Negative Sentiment: Commentary asking whether it’s time to reassess DocuSign after a prolonged share-price slump highlights sizable multi-timeframe declines and reinforces a cautious investor stance; such coverage can prolong negative momentum. Is It Time To Reassess DocuSign (DOCU) After Its Prolonged Share Price Slump
• Negative Sentiment: A director (Teresa Briggs) executed a small sale (~364 shares, ~$16k). The size is modest, so it’s more a datapoint than a major red flag, but insider selling can be perceived negatively in a down market. SEC Filing: Insider Sale by Teresa Briggs

Insider Activity at Docusign

In other news, insider Robert Chatwani sold 13,818 shares of Docusign stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $68.33, for a total value of $944,183.94. Following the completion of the transaction, the insider owned 70,197 shares in the company, valued at $4,796,561.01. This trade represents a 16.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CRO Paula Hansen sold 6,000 shares of the business’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $67.05, for a total transaction of $402,300.00. Following the completion of the sale, the executive directly owned 68,970 shares in the company, valued at approximately $4,624,438.50. This trade represents a 8.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 78,291 shares of company stock worth $5,365,134 in the last three months. Corporate insiders own 1.01% of the company’s stock.

Hedge Funds Weigh In On Docusign

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Nordea Investment Management AB boosted its stake in Docusign by 3.6% in the third quarter. Nordea Investment Management AB now owns 1,154,824 shares of the company’s stock worth $87,316,000 after buying an additional 40,432 shares in the last quarter. Baird Financial Group Inc. raised its stake in shares of Docusign by 927.2% during the second quarter. Baird Financial Group Inc. now owns 124,145 shares of the company’s stock worth $9,670,000 after acquiring an additional 112,059 shares in the last quarter. Rakuten Investment Management Inc. bought a new stake in shares of Docusign in the 3rd quarter worth approximately $5,335,000. Vise Technologies Inc. purchased a new stake in shares of Docusign in the 2nd quarter valued at $436,000. Finally, Bank of New York Mellon Corp grew its holdings in shares of Docusign by 3.1% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,594,884 shares of the company’s stock valued at $114,975,000 after purchasing an additional 47,331 shares during the last quarter. Hedge funds and other institutional investors own 77.64% of the company’s stock.

About Docusign

DocuSign, Inc (NASDAQ: DOCU) is a leading provider of electronic signature and digital transaction management solutions. The company’s flagship offering, DocuSign eSignature, enables organizations to send, sign and manage legally binding electronic agreements securely in the cloud. Beyond eSignature, DocuSign’s Agreement Cloud combines contract lifecycle management, document generation, and workflow automation to streamline agreement processes from initiation through execution and storage.

DocuSign’s platform serves a diverse customer base spanning industries such as finance, real estate, healthcare, technology, and government.