Docusign Sees Unusually High Options Volume (NASDAQ:DOCU)

Key Points

• Docusign Inc. (NASDAQ:DOCU) experienced a significant increase in options trading, with 16,197 call options acquired on a recent Wednesday, marking a 61% increase compared to its typical daily volume.
• Multiple analysts have lowered their price targets for Docusign, with Morgan Stanley reducing its target from $92 to $86, while the consensus price target now stands at $89.77.
• Docusign's board has authorized a stock buyback program allowing the company to repurchase up to $1 billion worth of shares, signaling confidence in its undervalued stock.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) saw unusually large options trading on Wednesday. Investors acquired 16,197 call options on the company. Thisrepresentsanincreaseofapproximately61% compared to the typical daily volume of 10,082 call options.

Analysts Set New Price Targets

DOCU has been the topic of a number of analyst reports. Morgan Stanley reduced their price target on Docusign from $92.00 to $86.00 and set an "equal weight" rating on the stock in a research report on Friday, June 6th. 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 report on Friday, June 6th. JPMorgan Chase & Co. reduced their target price on Docusign from $81.00 to $77.00 and set a "neutral" rating on the stock in a report on Friday, June 6th. UBS Group reduced their target price on Docusign from $85.00 to $80.00 and set a "neutral" rating on the stock in a report on Friday, June 6th. Finally, Wedbush reduced their target price on Docusign from $100.00 to $85.00 and set a "neutral" rating on the stock in a report on Thursday, June 12th. Four research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $89.77.

Docusign Trading Up 1.6%

NASDAQ:DOCU traded up $1.15 during trading hours on Wednesday, hitting $73.65. 363,324 shares of the company were exchanged, compared to its average volume of 2,563,090. The stock has a market capitalization of $14.88 billion, a price-to-earnings ratio of 13.91, a price-to-earnings-growth ratio of 27.60 and a beta of 1.01. Docusign has a one year low of $54.31 and a one year high of $107.86. The company has a fifty day simple moving average of $75.38 and a 200 day simple moving average of $80.01.

Docusign (NASDAQ:DOCU - Get Free Report) last announced its earnings results on Thursday, June 5th. The company reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.09. Docusign had a return on equity of 14.27% and a net margin of 36.50%.The business had revenue of $763.65 million during the quarter, compared to analyst estimates of $748.79 million. During the same period last year, the company earned $0.82 EPS. Docusign's revenue for the quarter was up 7.6% compared to the same quarter last year. Docusign has set its FY 2026 guidance at EPS. Q2 2026 guidance at EPS. Equities research analysts predict that Docusign will post 1.17 earnings per share for the current fiscal year.

Docusign declared that its board has authorized a stock buyback program on Thursday, June 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to purchase up to 6.6% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its stock is undervalued.

Insider Transactions at Docusign

In related news, insider Robert Chatwani sold 22,875 shares of the stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $74.79, for a total transaction of $1,710,821.25. Following the sale, the insider owned 72,126 shares of the company's stock, valued at $5,394,303.54. This represents a 24.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Allan C. Thygesen sold 40,000 shares of the stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $77.51, for a total value of $3,100,400.00. Following the sale, the chief executive officer directly owned 143,983 shares in the company, valued at $11,160,122.33. This represents a 21.74% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 78,552 shares of company stock worth $5,983,631 in the last ninety days. 1.66% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Neuberger Berman Group LLC raised its position in shares of Docusign by 17.2% in the 2nd quarter. Neuberger Berman Group LLC now owns 51,294 shares of the company's stock worth $3,995,000 after acquiring an additional 7,511 shares in the last quarter. B. Riley Wealth Advisors Inc. bought a new position in shares of Docusign in the 2nd quarter worth about $210,000. Marex Group plc bought a new position in shares of Docusign in the 2nd quarter worth about $386,000. State of Wyoming raised its position in shares of Docusign by 25.6% in the 2nd quarter. State of Wyoming now owns 8,559 shares of the company's stock worth $667,000 after acquiring an additional 1,745 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its position in shares of Docusign by 28.5% in the 2nd quarter. Geneos Wealth Management Inc. now owns 2,415 shares of the company's stock worth $188,000 after acquiring an additional 536 shares in the last quarter. 77.64% of the stock is owned by institutional investors.

Docusign Company Profile

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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