Royal Bank of Canada Raises Stock Position in Docusign Inc. $DOCU

Key Points

• Royal Bank of Canada increased its stake in Docusign Inc. to approximately $70.71 million, holding 868,692 shares after acquiring an additional 231,568 shares in the first quarter of 2023.
• Docusign reported Q2 earnings of $0.92 per share, surpassing estimates, with revenue reaching $800.64 million, an 8.8% increase year-over-year.
• The company has authorized a $1.00 billion share buyback program, which allows the repurchase of up to 6.6% of its shares, indicating a belief in the undervaluation of its stock.

Royal Bank of Canada raised its holdings in shares of Docusign Inc. (NASDAQ:DOCU - Free Report) by 36.3% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 868,692 shares of the company's stock after acquiring an additional 231,568 shares during the quarter. Royal Bank of Canada owned approximately 0.43% of Docusign worth $70,713,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently modified their holdings of the business. American Century Companies Inc. grew its position in shares of Docusign by 3.1% in the first quarter. American Century Companies Inc. now owns 5,477,758 shares of the company's stock valued at $445,890,000 after purchasing an additional 162,299 shares during the last quarter. Wellington Management Group LLP lifted 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 valued at $148,714,000 after buying an additional 1,440,269 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Docusign by 3.0% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,709,807 shares of the company's stock valued at $153,780,000 after buying an additional 50,440 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in Docusign by 6.7% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,431,901 shares of the company's stock worth $116,557,000 after buying an additional 89,948 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its position in Docusign by 24.7% during the fourth quarter. Ameriprise Financial Inc. now owns 1,186,106 shares of the company's stock worth $106,703,000 after buying an additional 235,145 shares in the last quarter. Hedge funds and other institutional investors own 77.64% of the company's stock.

Insider Transactions at Docusign

In other Docusign news, Director Teresa Briggs sold 534 shares of the company's stock in a transaction dated Monday, June 16th. The stock was sold at an average price of $74.37, for a total transaction of $39,713.58. Following the completion of the sale, the director directly owned 8,805 shares in the company, valued at $654,827.85. This represents a 5.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Robert Chatwani sold 22,875 shares of the firm's stock in a transaction dated Wednesday, June 18th. The stock was 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 owned 72,126 shares in the company, valued at approximately $5,394,303.54. This trade represents a 24.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 78,552 shares of company stock valued at $5,983,631. Corporate insiders own 1.01% of the company's stock.

Docusign Stock Down 1.2%

Shares of DOCU traded down $0.98 during mid-day trading on Wednesday, hitting $78.82. The company had a trading volume of 4,434,972 shares, compared to its average volume of 2,985,693. Docusign Inc. has a 1-year low of $54.31 and a 1-year high of $107.86. The business's 50-day simple moving average is $75.69 and its 200-day simple moving average is $79.29. The stock has a market cap of $15.85 billion, a PE ratio of 59.26, a P/E/G ratio of 4.18 and a beta of 1.02.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its quarterly earnings results on Thursday, September 4th. The company reported $0.92 earnings per share for the quarter, topping analysts' consensus estimates of $0.84 by $0.08. The company had revenue of $800.64 million for the quarter, compared to the consensus estimate of $780.35 million. Docusign had a net margin of 9.08% and a return on equity of 14.01%. Docusign's revenue was up 8.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.97 earnings per share. Docusign has set its Q3 2026 guidance at EPS. FY 2026 guidance at EPS. On average, sell-side analysts expect that Docusign Inc. will post 1.17 earnings per share for the current year.

Docusign announced that its board has initiated 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 buy up to 6.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company's board believes its shares are undervalued.

Analyst Ratings Changes

DOCU has been the topic of several recent research reports. Piper Sandler upped their price objective on Docusign from $85.00 to $90.00 and gave the company a "neutral" rating in a research report on Friday, September 5th. Wedbush reduced their target price on shares of Docusign from $100.00 to $85.00 and set a "neutral" rating on the stock in a report on Thursday, June 12th. Needham & Company LLC reiterated a "hold" rating on shares of Docusign in a report on Friday, September 5th. Bank of America upped their price objective on shares of Docusign from $85.00 to $102.00 and gave the company a "neutral" rating in a research note on Friday, September 5th. Finally, Robert W. Baird lifted their target price on shares of Docusign from $85.00 to $90.00 and gave the stock a "neutral" rating in a research note on Friday, September 5th. Four research analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $94.14.

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.