DocuSign (NASDAQ:DOCU) to Buyback $1.00 billion in Outstanding Stock

DocuSign (NASDAQ:DOCU - Get Free Report) declared that its board has approved a share buyback plan on Thursday, June 5th, RTT News reports. The company plans to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 6.6% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

DocuSign Trading Down 19.0%

Shares of NASDAQ:DOCU traded down $17.62 on Friday, reaching $75.28. 22,572,298 shares of the company traded hands, compared to its average volume of 2,857,113. The business's 50-day simple moving average is $82.23 and its 200 day simple moving average is $86.25. DocuSign has a 52 week low of $48.70 and a 52 week high of $107.86. The stock has a market capitalization of $15.24 billion, a P/E ratio of 15.52, a price-to-earnings-growth ratio of 6.94 and a beta of 1.21.

DocuSign (NASDAQ:DOCU - Get Free Report) last announced its quarterly earnings data on Thursday, June 5th. The company reported $0.90 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.81 by $0.09. The firm had revenue of $763.65 million for the quarter, compared to analysts' expectations of $748.79 million. DocuSign had a return on equity of 14.90% and a net margin of 34.73%. The company's revenue for the quarter was up 7.6% compared to the same quarter last year. During the same period last year, the firm earned $0.82 earnings per share. Sell-side analysts expect that DocuSign will post 1.17 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

DOCU has been the topic of a number of research analyst reports. JMP Securities reissued a "market outperform" rating and issued a $124.00 target price on shares of DocuSign in a research note on Tuesday. Citigroup increased their target price on DocuSign from $113.00 to $115.00 and gave the company a "buy" rating in a research note on Friday, March 14th. Robert W. Baird reduced their target price on DocuSign from $93.00 to $85.00 and set a "neutral" rating on the stock in a research note on Friday. Royal Bank of Canada reissued a "sector perform" rating and issued a $90.00 target price on shares of DocuSign in a research note on Friday, March 14th. Finally, Morgan Stanley reduced their target price on DocuSign from $92.00 to $86.00 and set an "equal weight" rating on the stock in a research note on Friday. One analyst has rated the stock with a sell rating, eleven have given a hold rating and four have issued a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $89.15.

Insider Transactions at DocuSign

In other news, insider Robert Chatwani sold 15,706 shares of the 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 completion of the sale, the insider now directly owns 76,842 shares in the company, valued at approximately $6,392,485.98. This represents a 16.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Blake Jeffrey Grayson sold 8,000 shares of the stock in a transaction dated Tuesday, April 15th. The stock was sold at an average price of $76.09, for a total transaction of $608,720.00. Following the sale, the chief financial officer now owns 86,156 shares of the company's stock, valued at approximately $6,555,610.04. This represents a 8.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 47,851 shares of company stock worth $3,912,239. Company insiders own 1.01% of the company's stock.

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.

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