Nippon Life Global Investors Americas Inc. Sells 417,000 Shares of Docusign Inc. $DOCU

Key Points

• Nippon Life Global Investors Americas cut its stake in DocuSign by 82%, selling 417,000 shares during Q4 and leaving it with 91,590 shares worth about $6.27 million.
• DocuSign's Board authorized a $2.0 billion share repurchase program (up to 21% of shares), signaling management believes the stock may be undervalued.
• Despite a quarterly beat on EPS and revenue, Wall Street has trimmed targets and ratings—DocuSign carries a consensus rating of "Hold" with an average target price of $61.40.

Nippon Life Global Investors Americas Inc. trimmed its stake in shares of Docusign Inc. (NASDAQ:DOCU - Free Report) by 82.0% in the fourth quarter, according to the company in its most recent filing with the SEC. The firm owned 91,590 shares of the company's stock after selling 417,000 shares during the quarter. Nippon Life Global Investors Americas Inc.'s holdings in Docusign were worth $6,265,000 as of its most recent SEC filing.

Other institutional investors have also recently modified their holdings of the company. Nordea Investment Management AB lifted its position in shares of Docusign by 3.6% during the 3rd quarter. Nordea Investment Management AB now owns 1,154,824 shares of the company's stock valued at $87,316,000 after acquiring an additional 40,432 shares during the period. Rakuten Investment Management Inc. bought a new stake in shares of Docusign during the 3rd quarter valued at $5,335,000. Bank of New York Mellon Corp lifted its position in shares of Docusign by 3.1% during the 3rd quarter. Bank of New York Mellon Corp now owns 1,594,884 shares of the company's stock worth $114,975,000 after buying an additional 47,331 shares during the last quarter. Retirement Systems of Alabama lifted its position in shares of Docusign by 11.1% during the 3rd quarter. Retirement Systems of Alabama now owns 519,106 shares of the company's stock worth $37,422,000 after buying an additional 51,922 shares during the last quarter. Finally, Federated Hermes Inc. lifted its position in shares of Docusign by 101.0% during the 3rd quarter. Federated Hermes Inc. now owns 230,524 shares of the company's stock worth $16,618,000 after buying an additional 115,829 shares during the last quarter. 77.64% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Citizens Jmp dropped their price objective on Docusign from $124.00 to $86.00 and set a "market outperform" rating for the company in a research report on Wednesday, March 18th. Citigroup downgraded Docusign from a "buy" rating to a "neutral" rating and dropped their price objective for the stock from $99.00 to $50.00 in a research report on Friday, April 10th. Bank of America assumed coverage on Docusign in a research report on Tuesday, March 31st. They set an "underperform" rating and a $52.00 price objective for the company. Needham & Company LLC restated a "hold" rating on shares of Docusign in a research report on Tuesday, March 10th. Finally, Morgan Stanley dropped their price objective on Docusign from $90.00 to $69.00 and set an "equal weight" rating for the company in a research report on Wednesday, March 18th. Three analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Docusign has a consensus rating of "Hold" and an average target price of $61.40.

Docusign Price Performance

Shares of DOCU opened at $46.22 on Monday. Docusign Inc. has a 12-month low of $40.16 and a 12-month high of $94.67. The business has a 50-day simple moving average of $46.43 and a two-hundred day simple moving average of $58.25. The stock has a market cap of $8.98 billion, a PE ratio of 31.23, a PEG ratio of 1.76 and a beta of 0.99.

Docusign (NASDAQ:DOCU - Get Free Report) last issued its earnings results on Tuesday, March 17th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.95 by $0.06. Docusign had a return on equity of 16.86% and a net margin of 9.60%.The business had revenue of $836.86 million during the quarter, compared to analysts' expectations of $828.23 million. During the same quarter in the prior year, the firm earned $0.86 EPS. The business's revenue for the quarter was up 7.8% compared to the same quarter last year. On average, equities research analysts expect that Docusign Inc. will post 1.76 EPS for the current year.

Docusign announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, March 17th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to buy up to 21% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other news, CRO Paula Hansen sold 6,000 shares of the stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $46.84, for a total value of $281,040.00. Following the completion of the sale, the executive owned 79,233 shares of the company's stock, valued at approximately $3,711,273.72. This represents a 7.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Allan C. Thygesen sold 26,250 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $47.78, for a total value of $1,254,225.00. Following the completion of the sale, the chief executive officer directly owned 152,237 shares of the company's stock, valued at approximately $7,273,883.86. The trade was a 14.71% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 64,673 shares of company stock worth $3,077,699. Company insiders own 1.66% of the company's stock.

Docusign 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.

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