LSV Asset Management Reduces Stock Holdings in Docusign Inc. (NASDAQ:DOCU)

Key Points

• LSV Asset Management has reduced its stake in Docusign Inc. by 18.1%, holding 308,567 shares valued at approximately $25.12 million.
• Several hedge funds have significantly increased their investments in Docusign, most notably FMR LLC and Invesco Ltd., raising their stakes by 178.2% and 283.9%, respectively, during the fourth quarter.
• Docusign's recent earnings report showed a profit of $0.90 per share, surpassing analysts' expectations, while the company announced a $1 billion share buyback program to bolster its stock value.

LSV Asset Management reduced its position in shares of Docusign Inc. (NASDAQ:DOCU - Free Report) by 18.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 308,567 shares of the company's stock after selling 68,133 shares during the period. LSV Asset Management owned about 0.15% of Docusign worth $25,117,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. Golden State Wealth Management LLC raised its holdings in shares of Docusign by 519.4% in the first quarter. Golden State Wealth Management LLC now owns 384 shares of the company's stock valued at $31,000 after purchasing an additional 322 shares during the last quarter. Wood Tarver Financial Group LLC bought a new stake in Docusign during the fourth quarter worth about $37,000. McIlrath & Eck LLC grew its stake 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 in the last quarter. MassMutual Private Wealth & Trust FSB increased its position in shares of 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 last quarter. Finally, Bessemer Group Inc. raised its stake in shares of Docusign by 490.0% during the 4th quarter. Bessemer Group Inc. now owns 472 shares of the company's stock worth $42,000 after purchasing an additional 392 shares in the last quarter. 77.64% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Needham & Company LLC reiterated a "hold" rating on shares of Docusign in a research note on Friday, June 6th. Wells Fargo & Company raised Docusign from an "underweight" rating to an "equal weight" rating and boosted their price target for the stock from $67.00 to $80.00 in a report on Friday, June 13th. Wall Street Zen downgraded Docusign from a "buy" rating to a "hold" rating in a research note on Saturday. UBS Group decreased their target price on Docusign from $85.00 to $80.00 and set a "neutral" rating for the company in a research note on Friday, June 6th. Finally, JMP Securities reissued a "market outperform" rating and set a $124.00 price objective on shares of Docusign in a research report on Tuesday, June 3rd. Thirteen investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $89.77.

Insider Activity at Docusign

In related news, insider Robert Chatwani sold 22,875 shares of the company's stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $74.79, for a total value of $1,710,821.25. Following the completion of the transaction, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Allan C. Thygesen sold 40,000 shares of the company's stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $77.51, for a total value of $3,100,400.00. Following the completion of the transaction, the chief executive officer owned 143,983 shares of the company's stock, valued at $11,160,122.33. The trade was a 21.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 78,552 shares of company stock worth $5,983,631 in the last 90 days. 1.01% of the stock is currently owned by corporate insiders.

Docusign Stock Performance

NASDAQ DOCU traded up $1.30 on Wednesday, hitting $75.14. 1,712,394 shares of the stock traded hands, compared to its average volume of 2,113,442. Docusign Inc. has a 12 month low of $50.78 and a 12 month high of $107.86. The business's fifty day moving average is $78.75 and its two-hundred day moving average is $82.38. The firm has a market capitalization of $15.18 billion, a price-to-earnings ratio of 14.20, a PEG ratio of 27.56 and a beta of 1.01.

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

Docusign announced that its board has authorized a share repurchase plan on Thursday, June 5th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 6.6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's board believes its stock is undervalued.

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.