Docusign Target of Unusually Large Options Trading (NASDAQ:DOCU)

Key Points

• DocuSign saw unusually heavy options activity, with investors purchasing 14,380 call options—66% above the average volume of 8,682 calls.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $60.27, despite Citizens JMP reiterating an “Outperform” rating with an $86 target.
• DocuSign reported quarterly earnings and revenue above estimates, with EPS of $1.09 and revenue of $830.24 million, while insiders sold 91,695 shares worth approximately $4.38 million over the past 90 days.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) saw unusually large options trading activity on Tuesday. Investors acquired 14,380 call options on the company. This is an increase of 66% compared to the average volume of 8,682 call options.

Wall Street Analyst Weigh In

DOCU has been the subject of several research reports. Citizens Jmp reiterated a "market outperform" rating and issued a $86.00 target price on shares of Docusign in a research report on Tuesday. Weiss Ratings raised shares of Docusign from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, July 14th. Jefferies Financial Group raised their price target on shares of Docusign from $45.00 to $50.00 and gave the stock a "hold" rating in a report on Friday, June 5th. Needham & Company LLC reaffirmed a "hold" rating on shares of Docusign in a research note on Friday, June 5th. Finally, Wedbush dropped their target price on shares of Docusign from $60.00 to $58.00 and set a "neutral" rating on the stock in a report on Friday, June 5th. Four analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $60.27.

Docusign Stock Performance

NASDAQ:DOCU traded up $1.52 during trading on Tuesday, reaching $61.34. The company's stock had a trading volume of 1,116,392 shares, compared to its average volume of 4,163,646. Docusign has a 12 month low of $40.16 and a 12 month high of $86.65. The firm has a market cap of $11.71 billion, a price-to-earnings ratio of 39.83, a price-to-earnings-growth ratio of 1.83 and a beta of 0.87. The firm has a 50 day moving average of $50.26 and a 200-day moving average of $48.39.

Docusign (NASDAQ:DOCU - Get Free Report) last released its quarterly earnings data on Thursday, June 4th. The company reported $1.09 EPS for the quarter, beating the consensus estimate of $0.99 by $0.10. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The business had revenue of $830.24 million for the quarter, compared to the consensus estimate of $824.71 million. During the same period in the prior year, the firm earned $0.90 earnings per share. The company's revenue was up 8.7% compared to the same quarter last year. Equities research analysts forecast that Docusign will post 2.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Docusign news, CRO Paula Hansen sold 6,000 shares of the business's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $45.54, for a total transaction of $273,240.00. Following the sale, the executive directly owned 89,972 shares of the company's stock, valued at $4,097,324.88. The trade was a 6.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Allan C. Thygesen sold 26,250 shares of Docusign stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $46.02, for a total transaction of $1,208,025.00. Following the completion of the transaction, the chief executive officer directly owned 159,038 shares of the company's stock, valued at approximately $7,318,928.76. This trade represents a 14.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 91,695 shares of company stock worth $4,376,002 over the last ninety days. Insiders own 0.59% of the company's stock.

Institutional Trading of Docusign

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of America Corp DE boosted its holdings in Docusign by 23.3% during the 1st quarter. Bank of America Corp DE now owns 1,193,163 shares of the company's stock valued at $56,568,000 after acquiring an additional 225,801 shares during the period. Capital World Investors boosted its stake in shares of Docusign by 38.1% during the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company's stock valued at $397,801,000 after purchasing an additional 1,603,900 shares during the period. Assenagon Asset Management S.A. grew its holdings in shares of Docusign by 247.5% in the second quarter. Assenagon Asset Management S.A. now owns 349,038 shares of the company's stock worth $15,504,000 after purchasing an additional 248,597 shares during the last quarter. CWM LLC increased its stake in shares of Docusign by 151.8% in the fourth quarter. CWM LLC now owns 47,290 shares of the company's stock worth $3,235,000 after buying an additional 28,511 shares during the period. Finally, United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund purchased a new position in shares of Docusign in the fourth quarter worth $6,897,000. Hedge funds and other institutional investors 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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