James Beer Sells 450 Shares of Docusign (NASDAQ:DOCU) Stock

Key Points

• Director James Beer sold 450 shares of DocuSign on June 2 at an average price of $55.04, totaling about $24,768. The sale was made under a pre-arranged Rule 10b5-1 plan, and Beer’s ownership fell by 2.91%.
• DocuSign stock fell 3.4% in Tuesday trading to $55.10, though volume was above average. The shares remain well below their 52-week high of $94.67 but above the 52-week low of $40.16.
• The company has recently posted better-than-expected earnings, with quarterly EPS of $1.01 versus a $0.95 estimate and revenue up 7.8% year over year. DocuSign also has a $2 billion share buyback authorization, while analysts currently rate the stock a consensus Hold with an average target price of $61.40.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) Director James Beer sold 450 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $55.04, for a total transaction of $24,768.00. Following the sale, the director directly owned 15,036 shares of the company's stock, valued at approximately $827,581.44. The trade was a 2.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Docusign Stock Down 3.4%

DOCU stock traded down $1.92 during trading on Tuesday, reaching $55.10. The stock had a trading volume of 4,876,948 shares, compared to its average volume of 4,341,708. Docusign Inc. has a one year low of $40.16 and a one year high of $94.67. The company's 50 day moving average is $47.41 and its two-hundred day moving average is $54.53. The company has a market capitalization of $10.71 billion, a price-to-earnings ratio of 37.23, a P/E/G ratio of 2.01 and a beta of 0.88.

Docusign (NASDAQ:DOCU - Get Free Report) last issued its quarterly earnings data 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 net margin of 9.60% and a return on equity of 16.86%. The business had revenue of $836.86 million during the quarter, compared to the consensus estimate of $828.23 million. During the same period in the prior year, the firm posted $0.86 EPS. The firm's quarterly revenue was up 7.8% compared to the same quarter last year. As a group, research analysts predict that Docusign Inc. will post 1.75 earnings per share for the current fiscal year.

Docusign announced that its Board of Directors has initiated a stock buyback program on Tuesday, March 17th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to buy up to 21% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Hedge Funds Weigh In On Docusign

A number of hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of Docusign by 1.1% in the third quarter. Vanguard Group Inc. now owns 21,625,551 shares of the company's stock valued at $1,558,986,000 after acquiring an additional 225,525 shares during the period. State Street Corp increased its position in shares of Docusign by 0.9% in the fourth quarter. State Street Corp now owns 8,193,805 shares of the company's stock valued at $560,456,000 after acquiring an additional 77,008 shares during the period. Capital World Investors increased its position in shares of Docusign by 38.1% in the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company's stock valued at $397,801,000 after acquiring an additional 1,603,900 shares during the period. Arrowstreet Capital Limited Partnership increased its position in shares of Docusign by 76.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company's stock valued at $250,568,000 after acquiring an additional 2,283,996 shares during the period. Finally, Geode Capital Management LLC increased its position in shares of Docusign by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company's stock valued at $278,665,000 after acquiring an additional 18,873 shares during the period. Hedge funds and other institutional investors own 77.64% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. BTIG Research reaffirmed a "buy" rating and issued a $70.00 price target on shares of Docusign in a report on Wednesday, March 18th. Wells Fargo & Company lowered their target price on shares of Docusign from $75.00 to $60.00 and set an "equal weight" rating on the stock in a research note on Wednesday, March 18th. JPMorgan Chase & Co. lowered their price objective on shares of Docusign from $78.00 to $65.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 18th. UBS Group lowered their price objective on shares of Docusign from $75.00 to $54.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 18th. Finally, Weiss Ratings lowered shares of Docusign from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, April 15th. Three investment 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. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $61.40.

Trending Headlines about Docusign

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Docusign announced its app is now available in ChatGPT and Codex, extending its Intelligent Agreement Management platform into OpenAI products and potentially boosting adoption by making it easier for customers to create, analyze, and manage agreements with natural-language prompts. Docusign Brings Trusted Agreement Intelligence and Workflows into ChatGPT and Codex
• Positive Sentiment: The company also named Graham Sheldon as Chief Product Officer, a move aimed at accelerating its AI-focused product strategy and strengthening execution around its Intelligent Agreement Management vision. Docusign Appoints Graham Sheldon as Chief Product Officer to Accelerate Intelligent Agreement Management Vision
• Neutral Sentiment: Several directors disclosed stock sales, including Anna Marrs, James A. Beer, and Teresa Briggs. The transactions were relatively small and were executed under pre-arranged Rule 10b5-1 plans, which usually makes them less concerning for investors. SEC filing: Anna Marrs Form 4
• Neutral Sentiment: Investor attention is also focused on Docusign’s June 4 earnings report, with recent commentary suggesting the market wants proof that its AI-driven product strategy is translating into stronger execution. Dear Docusign Stock Fans, Mark Your Calendars for June 4

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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