NWK Group Inc. Invests $5.21 Million in Docusign Inc. (NASDAQ:DOCU)

Key Points

• NWK Group Inc. has acquired a new position in Docusign Inc., investing approximately $5.21 million for 63,990 shares, which now makes up about 2.4% of its holdings.
• Docusign reported better-than-expected earnings with a quarterly EPS of $0.90, surpassing analysts' estimates and showing a yearly revenue increase of 7.6%.
• The company has authorized a $1 billion stock repurchase program to buy back up to 6.6% of its outstanding shares, a move typically indicating that management believes the company is undervalued.

NWK Group Inc. purchased a new stake in Docusign Inc. (NASDAQ:DOCU - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 63,990 shares of the company's stock, valued at approximately $5,209,000. Docusign makes up about 2.4% of NWK Group Inc.'s portfolio, making the stock its 19th largest position.

Several other large investors have also recently added to or reduced their stakes in DOCU. New Age Alpha Advisors LLC increased its holdings in Docusign by 738.2% during the 1st quarter. New Age Alpha Advisors LLC now owns 41,187 shares of the company's stock valued at $3,353,000 after purchasing an additional 36,273 shares in the last quarter. Concurrent Investment Advisors LLC acquired a new position in shares of Docusign during the first quarter worth approximately $618,000. Pinpoint Asset Management Ltd lifted its position in shares of Docusign by 54.3% during the first quarter. Pinpoint Asset Management Ltd now owns 56,985 shares of the company's stock worth $4,639,000 after purchasing an additional 20,043 shares in the last quarter. Gilman Hill Asset Management LLC increased its stake in shares of Docusign by 4.9% in the 1st quarter. Gilman Hill Asset Management LLC now owns 84,326 shares of the company's stock valued at $6,864,000 after buying an additional 3,904 shares during the period. Finally, Blair William & Co. IL increased its stake in shares of Docusign by 1.7% in the 1st quarter. Blair William & Co. IL now owns 387,542 shares of the company's stock valued at $31,546,000 after buying an additional 6,460 shares during the period. Institutional investors and hedge funds own 77.64% of the company's stock.

Docusign Price Performance

NASDAQ DOCU traded up $0.88 on Tuesday, reaching $68.02. The company had a trading volume of 3,776,044 shares, compared to its average volume of 2,605,675. The firm has a market cap of $13.74 billion, a price-to-earnings ratio of 12.86, a P/E/G ratio of 25.82 and a beta of 1.01. Docusign Inc. has a fifty-two week low of $52.04 and a fifty-two week high of $107.86. The business has a 50 day moving average of $77.42 and a two-hundred day moving average of $81.74.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its quarterly earnings data 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. The business had revenue of $763.65 million during the quarter, compared to the consensus estimate 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 period in the prior year, the business posted $0.82 earnings per share. As a group, research analysts predict that Docusign Inc. will post 1.17 earnings per share for the current fiscal year.

Docusign announced that its Board of Directors has authorized a share buyback program on Thursday, June 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to purchase up to 6.6% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other Docusign news, insider Robert Chatwani sold 22,875 shares of the stock in a transaction dated 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 completion of the sale, the insider directly owned 72,126 shares in the company, valued at approximately $5,394,303.54. This trade represents a 24.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Blake Jeffrey Grayson sold 15,143 shares of the stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $74.80, for a total value of $1,132,696.40. Following the sale, the chief financial officer owned 110,723 shares of the company's stock, valued at approximately $8,282,080.40. The trade was a 12.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 78,552 shares of company stock valued at $5,983,631. 1.66% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on DOCU shares. Robert W. Baird lowered their target price on Docusign from $93.00 to $85.00 and set a "neutral" rating for the company in a research note on Friday, June 6th. William Blair reissued an "outperform" rating on shares of Docusign in a research note on Monday, April 21st. Needham & Company LLC reissued 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 lifted their target price for the company from $67.00 to $80.00 in a research note on Friday, June 13th. Finally, Bank of America reduced their price target on Docusign from $88.00 to $85.00 and set a "neutral" rating on the stock in a research report on Friday, June 6th. Thirteen analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $89.77.

About Docusign

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.