Swedbank AB Reduces Stock Position in Docusign Inc. $DOCU

Key Points

• Swedbank AB cut its Docusign stake by 44% in the fourth quarter, ending with 73,588 shares valued at about $5.0 million.
• Analyst sentiment on DOCU remains cautious: the stock has a Hold consensus rating, with an average price target of $61.40. Recent calls ranged from buy to underperform, including a downgrade from Weiss Ratings.
• Docusign reported better-than-expected quarterly results, with EPS of $1.01 on revenue of $836.9 million, and its board authorized a $2 billion share repurchase program covering up to 21% of outstanding shares.

Swedbank AB lowered its stake in Docusign Inc. (NASDAQ:DOCU - Free Report) by 44.0% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 73,588 shares of the company's stock after selling 57,771 shares during the quarter. Swedbank AB's holdings in Docusign were worth $5,033,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Central Pacific Bank Trust Division purchased a new stake in Docusign in the fourth quarter worth approximately $25,000. Torren Management LLC purchased a new stake in Docusign in the fourth quarter worth approximately $28,000. True Wealth Design LLC boosted its holdings in Docusign by 105.2% in the fourth quarter. True Wealth Design LLC now owns 433 shares of the company's stock worth $30,000 after purchasing an additional 222 shares during the last quarter. Aventura Private Wealth LLC purchased a new stake in Docusign in the fourth quarter worth approximately $30,000. Finally, CX Institutional boosted its stake in shares of Docusign by 5,860.0% during the 3rd quarter. CX Institutional now owns 596 shares of the company's stock worth $43,000 after acquiring an additional 586 shares during the last quarter. Hedge funds and other institutional investors own 77.64% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently weighed in on DOCU shares. HSBC set a $53.00 price target on shares of Docusign in a research note on Friday, February 13th. Needham & Company LLC reiterated a "hold" rating on shares of Docusign in a research note on Tuesday, March 10th. Weiss Ratings cut shares of Docusign from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Wednesday, April 15th. Bank of America started coverage on shares of Docusign in a research note on Tuesday, March 31st. They set an "underperform" rating and a $52.00 price target on the stock. Finally, BTIG Research reiterated a "buy" rating and set a $70.00 price target on shares of Docusign in a research note on Wednesday, March 18th. Three equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $61.40.

Insider Activity at Docusign

In related news, Director Mary Agnes Wilderotter sold 3,000 shares of Docusign stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $48.15, for a total transaction of $144,450.00. Following the transaction, the director owned 59,803 shares in the company, valued at approximately $2,879,514.45. The trade was a 4.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Robert Chatwani sold 16,696 shares of Docusign stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $48.10, for a total transaction of $803,077.60. Following the transaction, the insider owned 72,458 shares in the company, valued at approximately $3,485,229.80. This trade represents a 18.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 64,673 shares of company stock worth $3,077,699 in the last 90 days. Company insiders own 1.01% of the company's stock.

Docusign Stock Performance

DOCU opened at $47.90 on Friday. Docusign Inc. has a fifty-two week low of $40.16 and a fifty-two week high of $94.67. The firm's fifty day moving average is $46.81 and its 200 day moving average is $57.17. The stock has a market cap of $9.31 billion, a price-to-earnings ratio of 32.36, a price-to-earnings-growth ratio of 1.83 and a beta of 0.88.

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

Docusign declared that its board has authorized a share repurchase plan on Tuesday, March 17th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to buy up to 21% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Docusign Company 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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