Docusign (NASDAQ:DOCU) Shares Gap Up – Should You Buy?

Docusign Inc. (NASDAQ:DOCU) shares gapped up before the market opened on Tuesday . The stock had previously closed at $49.02, but opened at $51.13. Docusign shares last traded at $50.9560, with a volume of 578,249 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on DOCU. Piper Sandler decreased their target price on Docusign from $75.00 to $52.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 18th. Morgan Stanley dropped their price target on Docusign from $90.00 to $69.00 and set an “equal weight” rating for the company in a research report on Wednesday, March 18th. Bank of America began coverage on Docusign in a research report on Tuesday, March 31st. They set an “underperform” rating and a $52.00 price target for the company. Needham & Company LLC reaffirmed a “hold” rating on shares of Docusign in a research note on Tuesday, March 10th. Finally, Weiss Ratings cut shares of Docusign from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, April 15th. Three investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $61.40.

Docusign Stock Performance

The firm’s 50 day moving average price is $46.90 and its two-hundred day moving average price is $55.96. The firm has a market cap of $9.55 billion, a PE ratio of 33.22, a PEG ratio of 1.82 and a beta of 0.88.

Docusign (NASDAQ:DOCU) last posted its quarterly earnings results on Tuesday, March 17th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.06. Docusign had a net margin of 9.60% and a return on equity of 16.86%. The business had revenue of $836.86 million during the quarter, compared to analysts’ expectations of $828.23 million. During the same quarter in the prior year, the company posted $0.86 EPS. The business’s revenue for the quarter was up 7.8% on a year-over-year basis. On average, analysts forecast that Docusign Inc. will post 1.76 earnings per share for the current year.

Docusign declared that its board has authorized a share repurchase program on Tuesday, March 17th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to purchase up to 21% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling at Docusign

In other news, insider Robert Chatwani sold 16,696 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $48.10, for a total transaction of $803,077.60. Following the completion of the transaction, the insider directly owned 72,458 shares in the company, valued at approximately $3,485,229.80. This represents a 18.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Mary Agnes Wilderotter sold 3,000 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $48.15, for a total value of $144,450.00. Following the transaction, the director owned 59,803 shares of the company’s stock, valued at approximately $2,879,514.45. This represents a 4.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 64,673 shares of company stock worth $3,077,699. Insiders own 0.59% of the company’s stock.

Hedge Funds Weigh In On Docusign

A number of hedge funds have recently made changes to their positions in the stock. Bank of America Corp DE boosted its position in shares of Docusign by 23.3% during the 1st quarter. Bank of America Corp DE now owns 1,193,163 shares of the company’s stock worth $56,568,000 after purchasing an additional 225,801 shares during the period. Janus Henderson Group PLC boosted its position in shares of Docusign by 422.7% during the 1st quarter. Janus Henderson Group PLC now owns 97,110 shares of the company’s stock worth $4,603,000 after purchasing an additional 78,530 shares during the period. Centaurus Financial Inc. boosted its position in shares of Docusign by 7.9% during the 1st quarter. Centaurus Financial Inc. now owns 27,209 shares of the company’s stock worth $1,290,000 after purchasing an additional 1,992 shares during the period. Bull Harbor Capital LLC purchased a new position in shares of Docusign during the 1st quarter worth approximately $420,000. Finally, Amundi boosted its position in shares of Docusign by 19.7% during the 1st quarter. Amundi now owns 1,036,657 shares of the company’s stock worth $49,148,000 after purchasing an additional 170,299 shares during the period. Hedge funds and other institutional investors own 77.64% of the company’s stock.

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.