Hsbc Holdings PLC Purchases 177,413 Shares of Docusign Inc. $DOCU

Key Points

• Hsbc Holdings PLC has increased its stake in Docusign Inc. by 55.5%, now owning approximately 0.25% of the company, valued at about $40.4 million.
• Several institutional investors are boosting their positions in Docusign, including Wellington Management Group LLP, which increased its stake by an astonishing 372.5% in the first quarter.
• Docusign announced a $1 billion stock repurchase program, allowing the company to buy back up to 6.6% of its outstanding shares, signaling confidence in its stock value.

Hsbc Holdings PLC increased its stake in Docusign Inc. (NASDAQ:DOCU - Free Report) by 55.5% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 496,814 shares of the company's stock after purchasing an additional 177,413 shares during the period. Hsbc Holdings PLC owned approximately 0.25% of Docusign worth $40,438,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in DOCU. Wellington Management Group LLP boosted its stake in Docusign by 372.5% in the 1st quarter. Wellington Management Group LLP now owns 1,826,949 shares of the company's stock worth $148,714,000 after purchasing an additional 1,440,269 shares during the period. Jericho Capital Asset Management L.P. boosted its stake in Docusign by 34.0% in the 4th quarter. Jericho Capital Asset Management L.P. now owns 4,754,753 shares of the company's stock worth $427,642,000 after purchasing an additional 1,205,500 shares during the period. Pacer Advisors Inc. boosted its stake in Docusign by 809.6% in the 1st quarter. Pacer Advisors Inc. now owns 1,167,290 shares of the company's stock worth $95,017,000 after purchasing an additional 1,038,962 shares during the period. Northern Trust Corp boosted its stake in Docusign by 77.2% in the 4th quarter. Northern Trust Corp now owns 1,984,378 shares of the company's stock worth $178,475,000 after purchasing an additional 864,408 shares during the period. Finally, Nuveen LLC acquired a new position in Docusign in the 1st quarter worth $50,459,000. 77.64% of the stock is owned by institutional investors and hedge funds.

Docusign Trading Up 0.8%

Shares of Docusign stock traded up $0.58 during trading hours on Thursday, reaching $75.26. 337,787 shares of the company's stock were exchanged, compared to its average volume of 2,564,212. The company has a 50 day moving average of $75.37 and a two-hundred day moving average of $79.97. Docusign Inc. has a fifty-two week low of $54.31 and a fifty-two week high of $107.86. The stock has a market cap of $15.21 billion, a P/E ratio of 14.24, a P/E/G ratio of 27.06 and a beta of 1.01.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its quarterly earnings data on Thursday, June 5th. The company reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.81 by $0.09. Docusign had a net margin of 36.50% and a return on equity of 14.27%. The company had revenue of $763.65 million during the quarter, compared to the consensus estimate of $748.79 million. During the same period in the prior year, the business posted $0.82 EPS. The company's quarterly revenue was up 7.6% on a year-over-year basis. Docusign has set its FY 2026 guidance at EPS. Q2 2026 guidance at EPS. As a group, analysts expect that Docusign Inc. will post 1.17 earnings per share for the current fiscal year.

Docusign announced that its Board of Directors has initiated a share buyback plan on Thursday, June 5th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 6.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Morgan Stanley reduced their target price on shares of Docusign from $92.00 to $86.00 and set an "equal weight" rating for the company in a research note on Friday, June 6th. JMP Securities reaffirmed a "market outperform" rating and issued a $124.00 target price on shares of Docusign in a research note on Tuesday, June 3rd. JPMorgan Chase & Co. reduced their target price on shares of Docusign from $81.00 to $77.00 and set a "neutral" rating for the company in a research note on Friday, June 6th. UBS Group reduced their price objective on shares of Docusign from $85.00 to $80.00 and set a "neutral" rating for the company in a research note on Friday, June 6th. Finally, Wall Street Zen downgraded shares of Docusign from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Four equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $89.77.

Insider Activity

In other news, CFO Blake Jeffrey Grayson sold 15,143 shares of the company's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $74.80, for a total value of $1,132,696.40. Following the sale, the chief financial officer directly owned 110,723 shares of the company's stock, valued at approximately $8,282,080.40. This represents a 12.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Robert Chatwani sold 22,875 shares of the company's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $74.79, for a total transaction of $1,710,821.25. Following the completion of the sale, the insider directly owned 72,126 shares in the company, valued at approximately $5,394,303.54. The trade was a 24.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 78,552 shares of company stock valued at $5,983,631 in the last 90 days. 1.01% of the stock is owned by company insiders.

Docusign 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.