Docusign (NASDAQ:DOCU) Shares Down 4.6% - Here's Why

Key Points

• Docusign shares fell 4.6% to about $61.16 in Friday trading, with volume roughly 71% below the average session volume.
• Analysts recently lowered price targets, including Wedbush, Wells Fargo and BTIG Research. The stock has a consensus “Hold” rating and an average price target of $60.27.
• Despite the selloff, Docusign beat quarterly estimates with EPS of $1.09 versus $0.99 expected and revenue of $830.24 million, up 8.7% year over year. Insiders have sold 91,695 shares worth about $4.38 million over the past three months.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) dropped 4.6% on Friday . The company traded as low as $61.16 and last traded at $61.1550. Approximately 1,197,898 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 4,175,331 shares. The stock had previously closed at $64.09.

Analyst Upgrades and Downgrades

DOCU has been the subject of several analyst reports. Wedbush dropped their price objective on Docusign from $60.00 to $58.00 and set a "neutral" rating for the company in a report on Friday, June 5th. Wells Fargo & Company cut their price objective on shares of Docusign from $60.00 to $55.00 and set an "equal weight" rating for the company in a research report on Friday, June 5th. Wall Street Zen lowered shares of Docusign from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 2nd. BTIG Research dropped their target price on shares of Docusign from $70.00 to $60.00 and set a "buy" rating for the company in a research report on Friday, June 5th. Finally, Weiss Ratings raised shares of Docusign from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, July 14th. Three analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $60.27.

Docusign Trading Down 4.6%

The firm has a 50-day moving average of $49.69 and a two-hundred day moving average of $48.33. The firm has a market capitalization of $11.67 billion, a P/E ratio of 39.72, a P/E/G ratio of 1.71 and a beta of 0.87.

Docusign (NASDAQ:DOCU - Get Free Report) last released its earnings results on Thursday, June 4th. The company reported $1.09 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.99 by $0.10. The firm had revenue of $830.24 million for the quarter, compared to analysts' expectations of $824.71 million. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The business's revenue for the quarter was up 8.7% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.90 earnings per share. On average, sell-side analysts anticipate that Docusign Inc. will post 2.03 EPS for the current fiscal year.

Insider Transactions at Docusign

In other news, CFO Blake Jeffrey Grayson sold 15,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $60.00, for a total value of $900,000.00. Following the completion of the transaction, the chief financial officer directly owned 126,429 shares in the company, valued at approximately $7,585,740. This represents a 10.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 15,902 shares of the firm's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $43.01, for a total value of $683,945.02. Following the sale, the insider directly owned 72,805 shares in the company, valued at approximately $3,131,343.05. This trade represents a 17.93% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 91,695 shares of company stock valued at $4,376,002. Corporate insiders own 0.59% of the company's stock.

Institutional Trading of Docusign

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Docusign in the 2nd quarter valued at approximately $927,059,000. Norges Bank bought a new stake in Docusign during the 4th quarter worth approximately $186,795,000. Arrowstreet Capital Limited Partnership increased its position in Docusign by 76.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company's stock valued at $250,568,000 after acquiring an additional 2,283,996 shares during the period. Capital World Investors increased its position in 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 acquiring an additional 1,603,900 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in shares of Docusign during the second quarter valued at $56,219,000. 77.64% of the stock is currently owned by institutional investors.

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.

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