Wedbush Issues Pessimistic Forecast for DocuSign (NASDAQ:DOCU) Stock Price

DocuSign (NASDAQ:DOCU - Free Report) had its target price reduced by Wedbush from $100.00 to $85.00 in a report issued on Friday,Benzinga reports. Wedbush currently has a neutral rating on the stock.

Other equities research analysts have also recently issued research reports about the stock. Needham & Company LLC reaffirmed a "hold" rating on shares of DocuSign in a research note on Friday. Hsbc Global Res upgraded DocuSign from a "moderate sell" rating to a "hold" rating in a report on Friday, April 11th. Jefferies Financial Group reduced their price target on DocuSign from $115.00 to $105.00 and set a "buy" rating on the stock in a report on Monday, March 31st. JMP Securities reiterated a "market outperform" rating and set a $124.00 price target on shares of DocuSign in a report on Tuesday. Finally, Royal Bank of Canada reiterated a "sector perform" rating and set a $90.00 price target on shares of DocuSign in a report on Friday, March 14th. One analyst has rated the stock with a sell rating, eleven have issued a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $89.15.

DocuSign Trading Down 19.0%

DOCU traded down $17.62 on Friday, hitting $75.28. 22,572,298 shares of the company's stock were exchanged, compared to its average volume of 2,857,113. DocuSign has a fifty-two week low of $48.70 and a fifty-two week high of $107.86. The firm has a 50-day moving average price of $82.23 and a 200-day moving average price of $86.25. The stock has a market cap of $15.24 billion, a price-to-earnings ratio of 15.52, a P/E/G ratio of 6.94 and a beta of 1.21.

DocuSign (NASDAQ:DOCU - Get Free Report) last announced its earnings results on Thursday, June 5th. The company reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.09. DocuSign had a net margin of 34.73% and a return on equity of 14.90%. The company had revenue of $763.65 million for the quarter, compared to analysts' expectations of $748.79 million. During the same quarter in the previous year, the company posted $0.82 EPS. The firm's quarterly revenue was up 7.6% on a year-over-year basis. On average, equities analysts predict that DocuSign will post 1.17 EPS for the current year.

DocuSign announced that its Board of Directors has initiated a share buyback program on Thursday, June 5th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 6.6% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider James P. Shaughnessy sold 7,500 shares of the company's stock in a transaction that occurred on Tuesday, April 1st. The shares were sold at an average price of $81.31, for a total transaction of $609,825.00. Following the sale, the insider now directly owns 45,875 shares in the company, valued at approximately $3,730,096.25. This represents a 14.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Blake Jeffrey Grayson sold 16,111 shares of the company's stock in a transaction that occurred on Wednesday, March 19th. The stock was sold at an average price of $83.20, for a total transaction of $1,340,435.20. Following the sale, the chief financial officer now owns 93,960 shares in the company, valued at $7,817,472. The trade was a 14.64% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 47,851 shares of company stock worth $3,912,239 over the last three months. Company insiders own 1.01% of the company's stock.

Institutional Trading of DocuSign

A number of large investors have recently made changes to their positions in the company. Palogic Value Management L.P. boosted its holdings in DocuSign by 2.2% in the first quarter. Palogic Value Management L.P. now owns 5,438 shares of the company's stock valued at $443,000 after purchasing an additional 117 shares in the last quarter. Wealthspire Advisors LLC boosted its holdings in DocuSign by 1.9% in the first quarter. Wealthspire Advisors LLC now owns 6,579 shares of the company's stock valued at $536,000 after purchasing an additional 122 shares in the last quarter. Foundry Partners LLC boosted its holdings in DocuSign by 1.5% in the first quarter. Foundry Partners LLC now owns 8,491 shares of the company's stock valued at $691,000 after purchasing an additional 125 shares in the last quarter. Bessemer Group Inc. boosted its holdings in DocuSign by 27.5% in the first quarter. Bessemer Group Inc. now owns 602 shares of the company's stock valued at $49,000 after purchasing an additional 130 shares in the last quarter. Finally, Citizens Financial Group Inc. RI boosted its holdings in DocuSign by 2.3% in the fourth quarter. Citizens Financial Group Inc. RI now owns 5,990 shares of the company's stock valued at $539,000 after purchasing an additional 133 shares in the last quarter. 77.64% of the stock is currently owned by hedge funds and other institutional investors.

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.