Investors Buy High Volume of Docusign Call Options (NASDAQ:DOCU)

Docusign Inc. (NASDAQ:DOCU) was the target of unusually large options trading on Monday. Stock investors acquired 30,382 call options on the stock. This is an increase of 224% compared to the typical daily volume of 9,371 call options.

Docusign Stock Performance

Shares of NASDAQ DOCU opened at $44.43 on Wednesday. Docusign has a 1 year low of $40.16 and a 1 year high of $86.65. The firm has a market cap of $8.48 billion, a price-to-earnings ratio of 28.85, a PEG ratio of 1.34 and a beta of 0.92. The stock’s 50-day simple moving average is $47.40 and its 200-day simple moving average is $53.04.

Docusign (NASDAQ:DOCU) last posted its quarterly earnings results on Thursday, June 4th. The company reported $1.09 EPS for the quarter, topping analysts’ consensus estimates of $0.99 by $0.10. The business had revenue of $830.24 million during the quarter, compared to the consensus estimate of $824.71 million. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The company’s revenue for the quarter was up 8.7% compared to the same quarter last year. During the same period last year, the firm earned $0.90 earnings per share. As a group, research analysts predict that Docusign will post 1.97 EPS for the current year.

Docusign declared that its board has approved a share buyback program on Tuesday, March 17th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to repurchase up to 21% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Piper Sandler cut their price objective on Docusign from $75.00 to $52.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 18th. Jefferies Financial Group raised their price objective on Docusign from $45.00 to $50.00 and gave the company a “hold” rating in a research report on Friday, June 5th. Wells Fargo & Company dropped their target price on Docusign from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research report on Friday, June 5th. Citigroup lifted their target price on Docusign from $50.00 to $54.00 and gave the stock a “neutral” rating in a research report on Friday, June 5th. Finally, Citizens Jmp dropped their target price on Docusign from $124.00 to $86.00 and set a “market outperform” rating on the stock in a research report on Wednesday, March 18th. Three investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $60.27.

Insider Buying and Selling

In other Docusign news, insider James P. Shaughnessy sold 12,000 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $46.83, for a total value of $561,960.00. Following the transaction, the insider directly owned 53,631 shares of the company’s stock, valued at $2,511,539.73. This trade represents a 18.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Paula Hansen sold 6,000 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $46.84, for a total value of $281,040.00. Following the completion of the transaction, the executive directly owned 79,233 shares in the company, valued at $3,711,273.72. This trade represents a 7.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 48,793 shares of company stock valued at $2,322,737. 0.59% of the stock is owned by company insiders.

Hedge Funds Weigh In On Docusign

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its stake in Docusign by 1.1% in the third quarter. Vanguard Group Inc. now owns 21,625,551 shares of the company’s stock worth $1,558,986,000 after purchasing an additional 225,525 shares in the last quarter. State Street Corp grew its stake in Docusign by 0.9% in the fourth quarter. State Street Corp now owns 8,193,805 shares of the company’s stock worth $560,456,000 after purchasing an additional 77,008 shares in the last quarter. Capital World Investors grew its stake in Docusign by 38.1% in the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company’s stock worth $397,801,000 after purchasing an additional 1,603,900 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in Docusign by 76.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company’s stock worth $250,568,000 after purchasing an additional 2,283,996 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in 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. 77.64% of the stock is currently owned by institutional investors and hedge funds.

About Docusign

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.