Docusign (NASDAQ:DOCU) Shares Gap Down - Time to Sell?

Key Points

• Shares gapped down about 12.5%, opening at $49.27 from $52.00 and last trading around $48.34 on heavy volume, signaling near-term selling pressure.
• Several brokers have cut price targets (e.g., Wedbush, Evercore, JPMorgan, RBC, UBS) and the consensus rating is "Hold" with an average target of $85.13, reflecting muted analyst sentiment.
• Insiders have been selling recently—CEO Allan Thygesen sold 26,250 shares and the company reports 78,292 insider shares sold (~$5.37M) in the last 90 days—while institutional investors still own about 77.64% of the stock.

Shares of Docusign Inc. (NASDAQ:DOCU - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $52.00, but opened at $49.27. Docusign shares last traded at $48.3420, with a volume of 1,270,293 shares trading hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on DOCU. Wedbush dropped their price objective on Docusign from $85.00 to $75.00 and set a "neutral" rating on the stock in a research note on Friday, December 5th. Evercore ISI dropped their price target on shares of Docusign from $92.00 to $80.00 and set an "in-line" rating on the stock in a research report on Friday, December 5th. JPMorgan Chase & Co. cut their price target on shares of Docusign from $80.00 to $78.00 and set a "neutral" rating for the company in a research note on Friday, December 5th. Royal Bank Of Canada decreased their price objective on shares of Docusign from $95.00 to $70.00 and set a "sector perform" rating for the company in a research report on Monday, January 5th. Finally, UBS Group dropped their target price on shares of Docusign from $85.00 to $75.00 and set a "neutral" rating on the stock in a report on Friday, December 5th. Six research analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $85.13.

Docusign Stock Down 12.5%

The stock has a market capitalization of $9.12 billion, a price-to-earnings ratio of 31.80, a P/E/G ratio of 2.58 and a beta of 0.99. The company's fifty day simple moving average is $65.13 and its 200 day simple moving average is $70.71.

Insiders Place Their Bets

In other Docusign news, CEO Allan C. Thygesen sold 26,250 shares of the firm's stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $69.60, for a total transaction of $1,827,000.00. Following the completion of the sale, the chief executive officer directly owned 142,261 shares in the company, valued at $9,901,365.60. This trade represents a 15.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CRO Paula Hansen sold 6,000 shares of the business's stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $67.05, for a total value of $402,300.00. Following the sale, the executive owned 68,970 shares of the company's stock, valued at approximately $4,624,438.50. This represents a 8.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 78,292 shares of company stock worth $5,374,260 in the last 90 days. Corporate insiders own 1.01% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its holdings in Docusign by 1.1% in the 3rd quarter. Vanguard Group Inc. now owns 21,625,551 shares of the company's stock valued at $1,558,986,000 after buying an additional 225,525 shares during the period. State Street Corp lifted its stake in Docusign by 0.5% during the third quarter. State Street Corp now owns 8,116,797 shares of the company's stock worth $585,140,000 after purchasing an additional 41,821 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Docusign by 1.6% in the 2nd quarter. American Century Companies Inc. now owns 5,564,318 shares of the company's stock valued at $433,405,000 after purchasing an additional 86,560 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Docusign by 1.5% in the 2nd quarter. Geode Capital Management LLC now owns 3,985,808 shares of the company's stock valued at $309,910,000 after purchasing an additional 59,941 shares during the last quarter. Finally, Invesco Ltd. raised its holdings in shares of Docusign by 4.5% during the 3rd quarter. Invesco Ltd. now owns 2,690,121 shares of the company's stock worth $193,931,000 after buying an additional 116,047 shares in the last quarter. Institutional investors and hedge funds 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.

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