Ground Swell Capital LLC Invests $323,000 in Docusign Inc. (NASDAQ:DOCU)

Key Points

• Ground Swell Capital LLC invested $323,000 in Docusign Inc., acquiring 3,972 shares in the first quarter.
• The CFO of Docusign, Blake Jeffrey Grayson, sold 15,143 shares for over $1.1 million, reducing his stake by 12.03%.
• Docusign announced a $1.00 billion share buyback plan as part of its strategy, indicating the board's belief that the stock is undervalued.

Ground Swell Capital LLC bought a new stake in Docusign Inc. (NASDAQ:DOCU - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 3,972 shares of the company's stock, valued at approximately $323,000.

Several other large investors have also modified their holdings of DOCU. Hemington Wealth Management raised its position in Docusign by 318.1% during the 1st quarter. Hemington Wealth Management now owns 347 shares of the company's stock worth $28,000 after buying an additional 264 shares during the last quarter. Golden State Wealth Management LLC raised its holdings in Docusign by 519.4% during the first quarter. Golden State Wealth Management LLC now owns 384 shares of the company's stock worth $31,000 after purchasing an additional 322 shares in the last quarter. Wood Tarver Financial Group LLC acquired a new stake in Docusign in the fourth quarter valued at about $37,000. McIlrath & Eck LLC lifted its position in Docusign by 476.0% in the fourth quarter. McIlrath & Eck LLC now owns 432 shares of the company's stock valued at $39,000 after purchasing an additional 357 shares during the period. Finally, MassMutual Private Wealth & Trust FSB increased its position in Docusign by 153.1% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 453 shares of the company's stock worth $37,000 after purchasing an additional 274 shares during the period. Hedge funds and other institutional investors own 77.64% of the company's stock.

Insider Buying and Selling

In other news, insider Robert Chatwani sold 22,875 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $74.79, for a total transaction of $1,710,821.25. Following the sale, the insider owned 72,126 shares in the company, valued at $5,394,303.54. This trade represents a 24.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Teresa Briggs sold 534 shares of the firm's stock in a transaction on Monday, June 16th. The stock was sold at an average price of $74.37, for a total value of $39,713.58. Following the sale, the director owned 8,805 shares in the company, valued at $654,827.85. This trade represents a 5.72% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 78,552 shares of company stock worth $5,983,631 in the last 90 days. Corporate insiders own 1.01% of the company's stock.

Docusign Price Performance

NASDAQ:DOCU traded up $1.90 during trading hours on Friday, reaching $70.90. 2,107,877 shares of the company traded hands, compared to its average volume of 2,234,166. The firm's 50-day moving average is $75.92 and its 200-day moving average is $81.13. The stock has a market cap of $14.33 billion, a P/E ratio of 13.40, a P/E/G ratio of 26.46 and a beta of 1.01. Docusign Inc. has a 1-year low of $54.31 and a 1-year high of $107.86.

Docusign (NASDAQ:DOCU - Get Free Report) last announced its earnings results on Thursday, June 5th. The company reported $0.90 EPS for the quarter, beating analysts' consensus estimates of $0.81 by $0.09. The firm had revenue of $763.65 million for the quarter, compared to analysts' expectations of $748.79 million. Docusign had a return on equity of 14.27% and a net margin of 36.50%. Docusign's quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.82 EPS. As a group, research analysts predict that Docusign Inc. will post 1.17 earnings per share for the current year.

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

Analysts Set New Price Targets

DOCU has been the subject of a number of analyst reports. William Blair reissued an "outperform" rating on shares of Docusign in a research note on Monday, April 21st. Wedbush cut their target price on Docusign from $100.00 to $85.00 and set a "neutral" rating for the company in a research note on Thursday, June 12th. Needham & Company LLC reissued a "hold" rating on shares of Docusign in a research note on Friday, June 6th. Morgan Stanley cut their target price on Docusign from $92.00 to $86.00 and set an "equal weight" rating for the company in a research note on Friday, June 6th. Finally, Wall Street Zen downgraded Docusign from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Thirteen equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $89.77.

Docusign Company Profile

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.