Docusign (NASDAQ:DOCU) Shares Gap Down – Here’s What Happened

Shares of Docusign Inc. (NASDAQ:DOCU) gapped down prior to trading on Tuesday . The stock had previously closed at $49.87, but opened at $47.34. Docusign shares last traded at $48.5960, with a volume of 353,832 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. BTIG Research reduced their target price on Docusign from $70.00 to $60.00 and set a “buy” rating on the stock in a research note on Friday, June 5th. Citigroup raised their price target on Docusign from $50.00 to $54.00 and gave the stock a “neutral” rating in a research report on Friday, June 5th. Wells Fargo & Company cut their price target on Docusign from $60.00 to $55.00 and set an “equal weight” rating for the company in a report on Friday, June 5th. Wall Street Zen downgraded Docusign from a “strong-buy” rating to a “buy” rating in a research report on Sunday. Finally, Morgan Stanley decreased their price objective on Docusign from $90.00 to $69.00 and set an “equal weight” rating on the stock in a research note on Wednesday, March 18th. Three analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $60.27.

Docusign Price Performance

The stock’s 50-day moving average is $47.13 and its 200-day moving average is $49.89. The stock has a market cap of $9.46 billion, a price-to-earnings ratio of 32.18, a price-to-earnings-growth ratio of 1.45 and a beta of 0.90.

Docusign (NASDAQ:DOCU) last released its earnings results on Thursday, June 4th. The company reported $1.09 EPS for the quarter, topping the consensus estimate of $0.99 by $0.10. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The firm had revenue of $830.24 million during the quarter, compared to analysts’ expectations of $824.71 million. During the same period in the previous year, the company earned $0.90 EPS. Docusign’s revenue for the quarter was up 8.7% on a year-over-year basis. Analysts predict that Docusign Inc. will post 2.03 EPS for the current fiscal year.

Docusign announced that its Board of Directors has approved a share buyback plan on Tuesday, March 17th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to buy up to 21% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at Docusign

In other Docusign news, CRO Paula Hansen sold 6,000 shares of Docusign stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total value of $273,240.00. Following the completion of the sale, the executive owned 89,972 shares in the company, valued at $4,097,324.88. The trade was a 6.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James P. Shaughnessy sold 12,000 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $45.54, for a total transaction of $546,480.00. Following the transaction, the insider directly owned 52,815 shares of the company’s stock, valued at approximately $2,405,195.10. This represents a 18.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 76,695 shares of company stock valued at $3,476,002. Corporate insiders own 0.59% of the company’s stock.

Institutional Investors Weigh In On Docusign

Institutional investors have recently bought and sold shares of the stock. State Street Corp raised its stake in Docusign by 0.9% during the fourth quarter. State Street Corp now owns 8,193,805 shares of the company’s stock worth $560,456,000 after purchasing an additional 77,008 shares during the period. Capital World Investors boosted its holdings in shares of Docusign by 38.1% in the 4th quarter. Capital World Investors now owns 5,815,804 shares of the company’s stock valued at $397,801,000 after purchasing an additional 1,603,900 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Docusign by 76.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company’s stock valued at $250,568,000 after buying an additional 2,283,996 shares during the period. Geode Capital Management LLC grew its stake in shares of Docusign by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company’s stock valued at $278,665,000 after buying an additional 18,873 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Docusign by 8.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,343,613 shares of the company’s stock worth $228,703,000 after buying an additional 251,639 shares during the last quarter. 77.64% of the stock is currently owned by hedge funds and other institutional investors.

Docusign Company Profile

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.