Bank of America Corp DE Purchases New Position in Docusign Inc. $DOCU

Key Points

• Bank of America acquired 1,039,579 DocuSign shares worth approximately $46.2 million, representing about 0.54% of the company. Institutional investors collectively own 77.64% of DOCU.
• Analysts maintain a generally cautious outlook: DOCU has an average “Hold” rating and a consensus price target of $67.33, despite recent target increases from UBS and Morgan Stanley.
• DocuSign exceeded quarterly expectations, reporting $1.16 in EPS versus $1.09 expected and revenue of $875.75 million, up 9.4% year over year. However, insiders sold approximately $10.9 million of shares over the past three months.

Bank of America Corp DE acquired a new position in shares of Docusign Inc. (NASDAQ:DOCU - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 1,039,579 shares of the company's stock, valued at approximately $46,178,000. Bank of America Corp DE owned approximately 0.54% of Docusign at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of DOCU. BlackRock Inc. acquired a new stake in shares of Docusign in the 2nd quarter valued at about $927,059,000. Capital World Investors increased its position in Docusign by 38.1% during the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company's stock worth $397,801,000 after buying an additional 1,603,900 shares during the period. Geode Capital Management LLC increased its position in Docusign by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company's stock worth $278,665,000 after buying an additional 18,873 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in Docusign by 76.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company's stock valued at $250,568,000 after buying an additional 2,283,996 shares during the last quarter. Finally, Norges Bank purchased a new stake in Docusign in the fourth quarter valued at approximately $186,795,000. Hedge funds and other institutional investors own 77.64% of the company's stock.

Analyst Upgrades and Downgrades

DOCU has been the topic of a number of research reports. Weiss Ratings upgraded shares of Docusign from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 25th. UBS Group lifted their price objective on shares of Docusign from $54.00 to $70.00 and gave the company a "neutral" rating in a research note on Friday, September 4th. Morgan Stanley raised their price target on Docusign from $69.00 to $75.00 and gave the stock an "equal weight" rating in a report on Friday, September 4th. Evercore set a $65.00 price target on Docusign in a research report on Friday, September 4th. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of Docusign in a research note on Friday, September 4th. Three equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $67.33.

Docusign Stock Down 0.7%

Shares of NASDAQ:DOCU opened at $68.57 on Tuesday. Docusign Inc. has a 52 week low of $40.16 and a 52 week high of $86.27. The company has a 50-day moving average price of $60.37 and a 200 day moving average price of $51.73. The company has a market cap of $12.82 billion, a P/E ratio of 41.81, a PEG ratio of 2.60 and a beta of 0.90.

Docusign (NASDAQ:DOCU - Get Free Report) last released its earnings results on Thursday, September 3rd. The company reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.07. Docusign had a return on equity of 18.29% and a net margin of 9.82%.The company had revenue of $875.75 million for the quarter, compared to analysts' expectations of $867.22 million. During the same quarter in the previous year, the firm posted $0.30 EPS. The firm's quarterly revenue was up 9.4% on a year-over-year basis. Analysts expect that Docusign Inc. will post 2.1 EPS for the current year.

Insider Transactions at Docusign

In other news, insider Robert Chatwani sold 14,676 shares of Docusign stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $69.41, for a total transaction of $1,018,661.16. Following the completion of the sale, the insider directly owned 75,928 shares in the company, valued at approximately $5,270,162.48. This trade represents a 16.20% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mary Wilderotter sold 1,096 shares of the business's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $70.60, for a total value of $77,377.60. Following the sale, the director directly owned 3,199 shares in the company, valued at $225,849.40. This trade represents a 25.52% 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 182,568 shares of company stock valued at $10,892,550. 0.59% of the stock is owned by company insiders.

About Docusign

DocuSign, Inc is a provider of digital agreement management and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping businesses replace paper-based contracting processes with digital workflows.

The company's products and services include DocuSign eSignature, which supports electronic signing and authentication, as well as tools for contract lifecycle management, agreement preparation, identity verification, notarial services and workflow automation.

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