Primecap Management Co. CA Has $37.42 Million Holdings in Docusign Inc. (NASDAQ:DOCU)

Key Points

• Primecap Management Co. CA reduced its stake in Docusign Inc. by 20.0%, holding 459,730 shares valued at approximately $37.42 million as of the last filing.
• Docusign's board has authorized a $1 billion stock repurchase plan, signifying a belief that the company's stock is currently undervalued.
• In its latest earnings report, Docusign exceeded expectations with $0.90 EPS, reporting a revenue increase of 7.6% year-over-year to $763.65 million.

Primecap Management Co. CA trimmed its holdings in Docusign Inc. (NASDAQ:DOCU - Free Report) by 20.0% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 459,730 shares of the company's stock after selling 114,800 shares during the period. Primecap Management Co. CA owned 0.23% of Docusign worth $37,422,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Hemington Wealth Management raised its holdings in Docusign by 318.1% in the 1st quarter. Hemington Wealth Management now owns 347 shares of the company's stock valued at $28,000 after acquiring an additional 264 shares in the last quarter. Golden State Wealth Management LLC increased its position 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 worth $31,000 after purchasing an additional 322 shares during the period. Wood Tarver Financial Group LLC acquired a new position in Docusign in the fourth quarter valued at about $37,000. McIlrath & Eck LLC lifted its position in Docusign by 476.0% during the fourth quarter. McIlrath & Eck LLC now owns 432 shares of the company's stock worth $39,000 after purchasing an additional 357 shares during the period. Finally, MassMutual Private Wealth & Trust FSB grew its stake in Docusign by 153.1% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 453 shares of the company's stock worth $37,000 after buying an additional 274 shares in the last quarter. 77.64% of the stock is currently owned by institutional investors and hedge funds.

Docusign Trading Up 1.8%

NASDAQ:DOCU opened at $75.14 on Thursday. The stock's 50-day moving average is $78.75 and its 200-day moving average is $82.38. Docusign Inc. has a 1-year low of $50.78 and a 1-year high of $107.86. The stock has a market cap of $15.18 billion, a P/E ratio of 14.20, a price-to-earnings-growth 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 EPS for the quarter, topping the consensus estimate of $0.81 by $0.09. Docusign had a net margin of 36.50% and a return on equity of 14.27%. The business had revenue of $763.65 million for the quarter, compared to the consensus estimate of $748.79 million. During the same period last year, the company earned $0.82 EPS. The firm's revenue was up 7.6% compared to the same quarter last year. As a group, equities analysts forecast that Docusign Inc. will post 1.17 EPS for the current year.

Docusign announced that its board has authorized a stock repurchase plan on Thursday, June 5th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to buy up to 6.6% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling at Docusign

In related news, CFO Blake Jeffrey Grayson sold 15,143 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $74.80, for a total transaction of $1,132,696.40. Following the completion of the sale, the chief financial officer owned 110,723 shares of the company's stock, valued at $8,282,080.40. This trade represents a 12.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Teresa Briggs sold 534 shares of Docusign stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $74.37, for a total value of $39,713.58. Following the completion of the sale, the director owned 8,805 shares of the company's stock, valued at approximately $654,827.85. The trade was a 5.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 78,552 shares of company stock worth $5,983,631. Company insiders own 1.01% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently commented on DOCU. HSBC upgraded shares of Docusign from a "reduce" rating to a "hold" rating and set a $70.00 target price for the company in a research report on Friday, April 11th. William Blair restated an "outperform" rating on shares of Docusign in a research report on Monday, April 21st. Needham & Company LLC reaffirmed a "hold" rating on shares of Docusign in a report on Friday, June 6th. JMP Securities reissued a "market outperform" rating and set a $124.00 price target on shares of Docusign in a report on Tuesday, June 3rd. Finally, Wells Fargo & Company upgraded Docusign from an "underweight" rating to an "equal weight" rating and upped their price objective for the stock from $67.00 to $80.00 in a research report on Friday, June 13th. Thirteen research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, Docusign currently has a consensus rating of "Hold" and a consensus price target 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.

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