CapWealth Advisors LLC Buys 21,681 Shares of Docusign Inc. $DOCU

Key Points

• CapWealth Advisors boosted its stake in DocuSign by 27%, buying 21,681 shares to hold 102,045 shares worth about $6.98 million after the 4th quarter.
• DocuSign authorized a $2.00 billion share buyback (up to ~21% of shares) and reported a quarterly beat with $1.01 EPS and revenue of $836.9 million, up 7.8% year‑over‑year.
• Wall Street is largely cautious: the stock has a consensus rating of "Hold" with a $61.40 target after several downgrades and lowered price targets from major firms.

CapWealth Advisors LLC increased its stake in Docusign Inc. (NASDAQ:DOCU - Free Report) by 27.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 102,045 shares of the company's stock after purchasing an additional 21,681 shares during the period. CapWealth Advisors LLC owned 0.05% of Docusign worth $6,980,000 as of its most recent SEC filing.

Other institutional investors have also recently bought and sold shares of the company. Central Pacific Bank Trust Division bought a new stake in shares of Docusign during the 4th quarter valued at $25,000. Torren Management LLC bought a new stake in shares of Docusign during the 4th quarter valued at $28,000. Aventura Private Wealth LLC bought a new stake in shares of Docusign during the 4th quarter valued at $30,000. True Wealth Design LLC raised its position in shares of Docusign by 105.2% during the 4th quarter. True Wealth Design LLC now owns 433 shares of the company's stock valued at $30,000 after acquiring an additional 222 shares during the last quarter. Finally, SJS Investment Consulting Inc. raised its position in shares of Docusign by 5,318.2% during the 3rd quarter. SJS Investment Consulting Inc. now owns 596 shares of the company's stock valued at $43,000 after acquiring an additional 585 shares during the last quarter. Institutional investors own 77.64% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Royal Bank Of Canada dropped their target price on shares of Docusign from $70.00 to $55.00 and set a "sector perform" rating for the company in a research report on Wednesday, March 18th. Bank of America assumed coverage on shares of Docusign in a research report on Tuesday, March 31st. They set an "underperform" rating and a $52.00 target price for the company. Citigroup cut shares of Docusign from a "buy" rating to a "neutral" rating and dropped their target price for the company from $99.00 to $50.00 in a research report on Friday, April 10th. Weiss Ratings cut shares of Docusign from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, April 15th. Finally, Robert W. Baird dropped their target price on shares of Docusign from $75.00 to $55.00 and set a "neutral" rating for the company in a research report on Wednesday, March 18th. Three investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $61.40.

Docusign Stock Up 4.3%

DOCU opened at $47.96 on Friday. Docusign Inc. has a 12 month low of $40.16 and a 12 month high of $94.67. The company has a fifty day simple moving average of $46.53 and a 200 day simple moving average of $57.75. The stock has a market cap of $9.32 billion, a P/E ratio of 32.41, a P/E/G ratio of 1.75 and a beta of 0.88.

Docusign (NASDAQ:DOCU - Get Free Report) last released its quarterly earnings data on Tuesday, March 17th. The company reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $0.95 by $0.06. Docusign had a net margin of 9.60% and a return on equity of 16.86%. The business had revenue of $836.86 million during the quarter, compared to analysts' expectations of $828.23 million. During the same quarter in the prior year, the company earned $0.86 EPS. The firm's quarterly revenue was up 7.8% on a year-over-year basis. On average, equities research analysts expect that Docusign Inc. will post 1.76 earnings per share for the current fiscal year.

Docusign declared that its Board of Directors has authorized a share buyback program on Tuesday, March 17th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to purchase up to 21% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider Robert Chatwani sold 16,696 shares of the company's stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $48.10, for a total value of $803,077.60. Following the completion of the sale, the insider owned 72,458 shares in the company, valued at $3,485,229.80. This represents a 18.73% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Allan C. Thygesen sold 26,250 shares of the company's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $47.78, for a total transaction of $1,254,225.00. Following the completion of the sale, the chief executive officer owned 152,237 shares of the company's stock, valued at approximately $7,273,883.86. This represents a 14.71% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 64,673 shares of company stock worth $3,077,699 over the last 90 days. 1.01% of the stock is currently owned by corporate insiders.

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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