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

DocuSign, Inc. (NASDAQ:DOCU) shares saw strong 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. 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.

A number of other research analysts have also recently issued reports on DOCU. Jefferies Financial Group decreased their price objective on shares of DocuSign from $115.00 to $105.00 and set a “buy” rating for the company in a report on Monday, March 31st. Royal Bank of Canada reiterated a “sector perform” rating and issued a $90.00 price target on shares of DocuSign in a report on Friday, March 14th. Citigroup upped their price target on shares of DocuSign from $113.00 to $115.00 and gave the company a “buy” rating in a report on Friday, March 14th. Wedbush reduced their price target on shares of DocuSign from $100.00 to $85.00 and set a “neutral” rating for the company in a report on Friday, June 6th. Finally, Morgan Stanley reduced their price target on shares of DocuSign from $97.00 to $92.00 and set an “equal weight” rating for the company in a report on Wednesday, April 16th. One investment analyst has rated the stock with a sell rating, eleven have assigned a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $88.77.

Insider Transactions at DocuSign

In other news, insider Robert Chatwani sold 15,706 shares of the business’s stock in a transaction dated Wednesday, March 19th. The shares were sold at an average price of $83.19, for a total transaction of $1,306,582.14. Following the transaction, the insider now directly owns 76,842 shares in the company, valued at $6,392,485.98. The trade was a 16.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Teresa Briggs sold 534 shares of the business’s stock in a transaction dated Monday, March 17th. The stock was sold at an average price of $87.41, for a total transaction of $46,676.94. Following the transaction, the director now owns 8,270 shares in the company, valued at $722,880.70. This represents a 6.07% 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 ninety days. Insiders own 1.01% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Kestra Investment Management LLC acquired a new position in shares of DocuSign during the 4th quarter worth approximately $30,000. Hemington Wealth Management lifted its holdings in shares of DocuSign by 318.1% during the 1st quarter. Hemington Wealth Management now owns 347 shares of the company’s stock worth $28,000 after acquiring an additional 264 shares during the period. Banque Transatlantique SA bought a new stake in shares of DocuSign during the 1st quarter worth approximately $26,000. Golden State Wealth Management LLC lifted its stake in DocuSign by 519.4% in the 1st quarter. Golden State Wealth Management LLC now owns 384 shares of the company’s stock valued at $31,000 after purchasing an additional 322 shares during the last quarter. Finally, First Horizon Advisors Inc. lifted its stake in DocuSign by 102.6% in the 4th quarter. First Horizon Advisors Inc. now owns 397 shares of the company’s stock valued at $36,000 after purchasing an additional 201 shares during the last quarter. Institutional investors and hedge funds own 77.64% of the company’s stock.

DocuSign Stock Performance

The firm has a market cap of $15.60 billion, a P/E ratio of 15.88, a P/E/G ratio of 6.94 and a beta of 1.14. The company’s 50 day moving average is $81.98 and its 200 day moving average is $86.22.

DocuSign (NASDAQ:DOCU) last issued its quarterly earnings data on Thursday, June 5th. The company reported $0.90 EPS for the quarter, beating the consensus estimate of $0.81 by $0.09. The business had revenue of $763.65 million during the quarter, compared to the consensus estimate of $748.79 million. DocuSign had a net margin of 34.73% and a return on equity of 14.90%. The firm’s revenue was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.82 EPS. On average, equities research analysts anticipate that DocuSign, Inc. will post 1.17 EPS for the current year.

DocuSign declared that its board has initiated a stock buyback plan on Thursday, June 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to reacquire up to 6.6% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are 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.