Federated Hermes Inc. Has $22.79 Million Stake in Docusign Inc. (NASDAQ:DOCU)

Key Points

• Federated Hermes Inc. has reduced its stake in Docusign by 33.8%, selling 142,936 shares and now holding 279,923 shares valued at approximately $22.79 million.
• Docusign reported earnings of $0.90 per share for the latest quarter, exceeding analysts' expectations, with a revenue of $763.65 million, marking a 7.6% year-over-year increase.
• The company has initiated a $1.00 billion stock buyback program, allowing it to repurchase up to 6.6% of its outstanding shares, indicating a belief that the stock is undervalued.

Federated Hermes Inc. decreased its position in Docusign Inc. (NASDAQ:DOCU - Free Report) by 33.8% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 279,923 shares of the company's stock after selling 142,936 shares during the period. Federated Hermes Inc. owned approximately 0.14% of Docusign worth $22,786,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently bought and sold shares of the company. Concurrent Investment Advisors LLC bought a new stake in Docusign during the first quarter worth approximately $618,000. Gilman Hill Asset Management LLC lifted its position in Docusign by 4.9% in the 1st quarter. Gilman Hill Asset Management LLC now owns 84,326 shares of the company's stock worth $6,864,000 after buying an additional 3,904 shares in the last quarter. Paradiem LLC purchased a new stake in Docusign in the 1st quarter worth approximately $4,357,000. Wealth Enhancement Advisory Services LLC lifted its position in Docusign by 528.7% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 108,232 shares of the company's stock worth $8,810,000 after buying an additional 91,017 shares in the last quarter. Finally, Kentucky Retirement Systems purchased a new stake in Docusign in the 1st quarter worth approximately $1,114,000. Institutional investors own 77.64% of the company's stock.

Insider Activity

In other Docusign news, CEO Allan C. Thygesen sold 40,000 shares of the company's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $77.51, for a total value of $3,100,400.00. Following the completion of the sale, the chief executive officer owned 143,983 shares of the company's stock, valued at approximately $11,160,122.33. This represents a 21.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Blake Jeffrey Grayson sold 15,143 shares of the company's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $74.80, for a total transaction of $1,132,696.40. Following the completion of the sale, the chief financial officer directly owned 110,723 shares of the company's stock, valued at $8,282,080.40. The trade was a 12.03% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 78,552 shares of company stock worth $5,983,631 over the last three months. Company insiders own 1.01% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on DOCU shares. JMP Securities reiterated a "market outperform" rating and issued a $124.00 price objective on shares of Docusign in a report on Tuesday, June 3rd. Robert W. Baird dropped their target price on shares of Docusign from $93.00 to $85.00 and set a "neutral" rating on the stock in a report on Friday, June 6th. UBS Group dropped their target price on shares of Docusign from $85.00 to $80.00 and set a "neutral" rating on the stock in a report on Friday, June 6th. Needham & Company LLC reiterated a "hold" rating on shares of Docusign in a report on Friday, June 6th. Finally, Morgan Stanley decreased their price target on shares of Docusign from $92.00 to $86.00 and set an "equal weight" rating on the stock in a research report on Friday, June 6th. Thirteen research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $89.77.

Docusign Stock Performance

Shares of NASDAQ DOCU traded down $1.80 during trading on Friday, reaching $73.84. The company had a trading volume of 1,871,136 shares, compared to its average volume of 2,088,222. Docusign Inc. has a 52 week low of $48.80 and a 52 week high of $107.86. The stock has a market cap of $14.92 billion, a PE ratio of 13.96, a PEG ratio of 27.56 and a beta of 1.01. The business's 50 day moving average price is $79.18 and its 200-day moving average price is $82.60.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its quarterly earnings results on Thursday, June 5th. The company reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.81 by $0.09. The business had revenue of $763.65 million during the quarter, compared to the consensus estimate of $748.79 million. Docusign had a net margin of 36.50% and a return on equity of 14.27%. Docusign's revenue for the quarter was up 7.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.82 earnings per share. Equities analysts anticipate that Docusign Inc. will post 1.17 earnings per share for the current year.

Docusign declared that its board has authorized a stock buyback plan on Thursday, June 5th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to buy up to 6.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

About Docusign

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.