Docusign (NASDAQ:DOCU) Shares Gap Down – What’s Next?

Shares of Docusign Inc. (NASDAQ:DOCU) gapped down before the market opened on Tuesday . The stock had previously closed at $49.87, but opened at $47.34. Docusign shares last traded at $48.5960, with a volume of 353,832 shares changing hands.

Analysts Set New Price Targets

DOCU has been the subject of several research analyst reports. UBS Group set a $60.00 price target on Docusign in a research note on Friday, June 5th. Robert W. Baird reduced their price objective on Docusign from $75.00 to $55.00 and set a “neutral” rating on the stock in a research note on Wednesday, March 18th. Piper Sandler decreased their target price on Docusign from $75.00 to $52.00 and set a “neutral” rating for the company in a report on Wednesday, March 18th. Jefferies Financial Group increased their target price on shares of Docusign from $45.00 to $50.00 and gave the stock a “hold” rating in a research report on Friday, June 5th. Finally, Citizens Jmp cut their price target on shares of Docusign from $124.00 to $86.00 and set a “market outperform” rating on the stock in a report 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 given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Docusign currently has a consensus rating of “Hold” and a consensus price target of $60.27.

Docusign Trading Down 0.7%

The business has a 50 day simple moving average of $47.13 and a two-hundred day simple moving average of $49.89. The stock has a market cap of $9.46 billion, a price-to-earnings ratio of 32.18, a price-to-earnings-growth ratio of 1.45 and a beta of 0.90.

Docusign (NASDAQ:DOCU) last posted its quarterly earnings data on Thursday, June 4th. The company reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.99 by $0.10. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The company had revenue of $830.24 million for the quarter, compared to the consensus estimate of $824.71 million. During the same period in the previous year, the business earned $0.90 EPS. Docusign’s revenue for the quarter was up 8.7% compared to the same quarter last year. Research analysts anticipate that Docusign Inc. will post 2.03 EPS for the current fiscal year.

Docusign announced that its board has authorized a share repurchase 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 shares through open market purchases. Shares buyback programs are usually a sign that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Docusign news, CFO Blake Jeffrey Grayson sold 15,000 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $45.55, for a total transaction of $683,250.00. Following the transaction, the chief financial officer directly owned 141,429 shares in the company, valued at $6,442,090.95. This represents a 9.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James P. Shaughnessy sold 12,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total transaction of $546,480.00. Following the transaction, the insider directly owned 52,815 shares of the company’s stock, valued at approximately $2,405,195.10. This represents a 18.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 76,695 shares of company stock valued at $3,476,002. 0.59% of the stock is owned by insiders.

Hedge Funds Weigh In On Docusign

Several large investors have recently modified their holdings of DOCU. Central Pacific Bank Trust Division acquired a new position in Docusign in the fourth quarter worth about $25,000. Modus Advisors LLC acquired a new stake in Docusign during the fourth quarter valued at approximately $27,000. Torren Management LLC acquired a new stake in Docusign during the fourth quarter valued at approximately $28,000. True Wealth Design LLC lifted its holdings in Docusign by 105.2% during the 4th quarter. True Wealth Design LLC now owns 433 shares of the company’s stock worth $30,000 after buying an additional 222 shares during the last quarter. Finally, Aventura Private Wealth LLC bought a new position in Docusign during the 4th quarter worth approximately $30,000. Institutional investors own 77.64% of the company’s stock.

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.