Bank of Nova Scotia Buys New Shares in Docusign Inc. $DOCU

Key Points

• Bank of Nova Scotia initiated a Docusign position by purchasing 113,700 shares worth approximately $5.05 million, while institutional investors collectively own 77.64% of DOCU.
• Analyst sentiment remains cautious: the stock carries a consensus “Hold” rating with a $60.27 price target, despite four Buy ratings and recent target-price reductions from BTIG Research and Wedbush.
• Docusign exceeded quarterly expectations, reporting $1.09 in earnings per share versus $0.99 expected and $830.24 million in revenue, up 8.7% year over year. However, insiders have sold 91,695 shares worth about $4.38 million over the past 90 days.

Bank of Nova Scotia purchased a new position in Docusign Inc. (NASDAQ:DOCU - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 113,700 shares of the company's stock, valued at approximately $5,051,000. Bank of Nova Scotia owned 0.06% of Docusign at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Smartleaf Asset Management LLC increased its position in shares of Docusign by 8.2% during the second quarter. Smartleaf Asset Management LLC now owns 2,169 shares of the company's stock worth $166,000 after acquiring an additional 165 shares in the last quarter. Centaurus Financial Inc. lifted its stake in Docusign by 3.4% during the 3rd quarter. Centaurus Financial Inc. now owns 5,582 shares of the company's stock valued at $402,000 after acquiring an additional 184 shares in the last quarter. Tred Avon Family Wealth LLC grew its stake in shares of Docusign by 3.6% in the 1st quarter. Tred Avon Family Wealth LLC now owns 6,176 shares of the company's stock worth $293,000 after acquiring an additional 215 shares in the last quarter. Sanctuary Advisors LLC raised its holdings in shares of Docusign by 2.4% in the fourth quarter. Sanctuary Advisors LLC now owns 9,685 shares of the company's stock valued at $662,000 after purchasing an additional 231 shares during the last quarter. Finally, First Citizens Bank & Trust Co. raised its holdings in shares of Docusign by 2.1% in the first quarter. First Citizens Bank & Trust Co. now owns 11,745 shares of the company's stock valued at $557,000 after purchasing an additional 239 shares during the last quarter. 77.64% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts recently weighed in on DOCU shares. Citigroup restated a "market outperform" rating on shares of Docusign in a report on Tuesday, August 18th. BTIG Research cut their target price on Docusign from $70.00 to $60.00 and set a "buy" rating on the stock in a research note on Friday, June 5th. Wall Street Zen lowered Docusign from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 2nd. Weiss Ratings raised Docusign from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, July 14th. Finally, Wedbush dropped their price target on Docusign from $60.00 to $58.00 and set a "neutral" rating on the stock in a report on Friday, June 5th. Four research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $60.27.

Insider Activity

In other Docusign news, insider Robert Chatwani sold 15,902 shares of Docusign stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $43.01, for a total transaction of $683,945.02. Following the transaction, the insider directly owned 72,805 shares of the company's stock, valued at approximately $3,131,343.05. This trade represents a 17.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James P. Shaughnessy sold 12,000 shares of Docusign stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total transaction of $546,480.00. Following the completion of the transaction, the insider owned 52,815 shares in the company, valued at approximately $2,405,195.10. The trade was a 18.51% 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. In the last 90 days, insiders have sold 91,695 shares of company stock worth $4,376,002. Corporate insiders own 0.59% of the company's stock.

Docusign Trading Down 3.2%

DOCU opened at $60.54 on Wednesday. Docusign Inc. has a 12 month low of $40.16 and a 12 month high of $86.65. The company has a market cap of $11.56 billion, a PE ratio of 39.31, a price-to-earnings-growth ratio of 1.83 and a beta of 0.87. The company has a 50 day moving average of $52.28 and a 200 day moving average of $48.83.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its earnings results on Thursday, June 4th. The company reported $1.09 earnings per share for the quarter, beating analysts' consensus estimates of $0.99 by $0.10. The business had revenue of $830.24 million during the quarter, compared to analyst estimates of $824.71 million. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The company's quarterly revenue was up 8.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.90 EPS. Research analysts forecast that Docusign Inc. will post 2.04 earnings per share for the current fiscal year.

Docusign 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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