Hsbc Holdings PLC Makes New Investment in Docusign Inc. $DOCU

Key Points

• HSBC Holdings initiated a new DocuSign position by purchasing 116,076 shares worth approximately $5.16 million, while institutional investors collectively own 77.64% of DOCU.
• DocuSign reported quarterly results above expectations, with EPS of $1.09 versus the $0.99 consensus estimate and revenue of $830.24 million, up 8.7% year over year.
• Despite the earnings beat and shares trading at $64, analyst sentiment remains cautious: DOCU has a consensus “Hold” rating and an average price target of $60.27.

Hsbc Holdings PLC bought a new position in shares of Docusign Inc. (NASDAQ:DOCU - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 116,076 shares of the company's stock, valued at approximately $5,156,000. Hsbc Holdings PLC owned approximately 0.06% of Docusign as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also made changes to their positions in the company. NewEdge Advisors LLC increased its position in Docusign by 36.4% during the first quarter. NewEdge Advisors LLC now owns 9,202 shares of the company's stock worth $749,000 after buying an additional 2,457 shares during the period. Guggenheim Capital LLC lifted its stake in Docusign by 6.7% in the second quarter. Guggenheim Capital LLC now owns 11,543 shares of the company's stock valued at $899,000 after buying an additional 729 shares during the last quarter. State Street Corp boosted its holdings in shares of Docusign by 3.0% in the second quarter. State Street Corp now owns 8,074,976 shares of the company's stock valued at $628,960,000 after acquiring an additional 236,494 shares during the period. Sei Investments Co. boosted its holdings in shares of Docusign by 60.7% in the second quarter. Sei Investments Co. now owns 40,386 shares of the company's stock valued at $3,146,000 after acquiring an additional 15,247 shares during the period. Finally, Treasurer of the State of North Carolina grew its position in shares of Docusign by 51.0% during the second quarter. Treasurer of the State of North Carolina now owns 189,178 shares of the company's stock worth $14,735,000 after acquiring an additional 63,911 shares during the last quarter. Institutional investors and hedge funds own 77.64% of the company's stock.

Docusign Trading Up 0.3%

DOCU stock opened at $64.00 on Friday. The firm has a 50 day moving average of $53.44 and a 200-day moving average of $49.15. 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 $12.22 billion, a price-to-earnings ratio of 41.56, a PEG ratio of 1.85 and a beta of 0.87.

Docusign (NASDAQ:DOCU - Get Free Report) last announced its quarterly earnings results on Thursday, June 4th. The company reported $1.09 EPS for the quarter, topping the consensus estimate of $0.99 by $0.10. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The business had revenue of $830.24 million for the quarter, compared to analyst estimates of $824.71 million. During the same quarter in the previous year, the company earned $0.90 EPS. The company's quarterly revenue was up 8.7% on a year-over-year basis. Sell-side analysts forecast that Docusign Inc. will post 2.06 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of brokerages have recently commented on DOCU. Citigroup reaffirmed a "market outperform" rating on shares of Docusign in a report on Tuesday, August 18th. Wedbush lowered their target price on Docusign from $60.00 to $58.00 and set a "neutral" rating on the stock in a research note on Friday, June 5th. Jefferies Financial Group increased their target price on Docusign from $45.00 to $50.00 and gave the stock a "hold" rating in a research note on Friday, June 5th. Wells Fargo & Company cut their price objective on Docusign from $60.00 to $55.00 and set an "equal weight" rating for the company in a research report on Friday, June 5th. Finally, BTIG Research decreased their target price on shares of Docusign from $70.00 to $60.00 and set a "buy" rating on the stock in a research 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 stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $60.27.

Key Stories Impacting Docusign

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Analysts at Zacks said DocuSign’s upcoming earnings report could benefit from factors supporting a potential earnings beat. The articles encourage investors to monitor earnings expectations ahead of the scheduled quarterly announcement. DocuSign Earnings Expected to Grow
• Positive Sentiment: Recent trading strength across several software stocks, including DocuSign, provided a favorable sector backdrop and helped support investor sentiment toward DOCU. Software Stocks Trade Up
• Neutral Sentiment: DocuSign’s ARR guidance is expected to receive increased attention from Bank of America. Investors will likely scrutinize recurring-revenue growth and management’s outlook because ARR is a key indicator of future subscription performance. DocuSign ARR Guidance
• Neutral Sentiment: Comparisons with Autodesk NASDAQ: ADSK frame DocuSign as a potential value opportunity within internet software, but the analysis does not represent a new company catalyst. DOCU Versus ADSK
• Negative Sentiment: Director James A. Beer sold 450 shares worth approximately $28,809. The transaction reduced his holdings by 2.99%, but it was made under a pre-arranged Rule 10b5-1 trading plan and represents only a small portion of his remaining stake, limiting its significance as a bearish signal. DocuSign Director Stock Sale Filing

Insider Buying and Selling

In other news, Director James A. Beer sold 450 shares of Docusign stock in a transaction on Friday, August 28th. The stock was sold at an average price of $64.02, for a total transaction of $28,809.00. Following the completion of the transaction, the director owned 14,586 shares of the company's stock, valued at $933,795.72. The trade was a 2.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Blake Jeffrey Grayson sold 15,000 shares of the business's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $60.00, for a total transaction of $900,000.00. Following the completion of the sale, the chief financial officer owned 126,429 shares in the company, valued at $7,585,740. This represents a 10.61% decrease in their ownership of the stock. 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 91,780 shares of company stock valued at $4,386,546 in the last three months. 0.59% of the stock is owned by insiders.

Docusign Company 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source