Docusign Sees Unusually High Options Volume (NASDAQ:DOCU)

Docusign Inc. (NASDAQ:DOCU) was the recipient of unusually large options trading on Monday. Investors bought 30,382 call options on the company. This represents an increase of approximately 224% compared to the typical volume of 9,371 call options.

Docusign Price Performance

Shares of DOCU stock traded down $1.08 during mid-day trading on Monday, hitting $43.96. The stock had a trading volume of 3,683,282 shares, compared to its average volume of 4,395,423. Docusign has a 12-month low of $40.16 and a 12-month high of $86.65. The firm has a market capitalization of $8.39 billion, a P/E ratio of 28.54, a price-to-earnings-growth ratio of 1.36 and a beta of 0.92. The firm’s 50-day moving average is $47.56 and its two-hundred day moving average is $53.38.

Docusign (NASDAQ:DOCU) last issued its earnings results on Thursday, June 4th. The company reported $1.09 earnings per share 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 business had revenue of $830.24 million during the quarter, compared to analysts’ expectations of $824.71 million. During the same period in the prior year, the business earned $0.90 EPS. The business’s revenue for the quarter was up 8.7% compared to the same quarter last year. Analysts expect that Docusign will post 1.97 EPS for the current year.

Docusign announced that its Board of Directors 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 repurchase up to 21% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Docusign

In other news, Director Mary Agnes Wilderotter sold 3,000 shares of Docusign stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $48.15, for a total value of $144,450.00. Following the completion of 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CRO Paula Hansen sold 6,000 shares of the business’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $46.84, for a total value of $281,040.00. Following the transaction, the executive owned 79,233 shares of the company’s stock, valued at approximately $3,711,273.72. The trade was a 7.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 65,489 shares of company stock worth $3,125,814. 0.59% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Docusign

A number of hedge funds have recently made changes to their positions in DOCU. Norges Bank purchased a new stake in shares of Docusign during the 4th quarter worth $186,795,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Docusign by 76.1% during the 1st 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 during the last quarter. Capital World Investors lifted its stake in shares of Docusign by 38.1% during the 4th 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 during the last quarter. SG Americas Securities LLC lifted its stake in shares of Docusign by 452.3% during the 1st quarter. SG Americas Securities LLC now owns 1,314,632 shares of the company’s stock worth $62,327,000 after purchasing an additional 1,076,622 shares during the last quarter. Finally, Woodline Partners LP lifted its stake in shares of Docusign by 24,412.7% during the 3rd quarter. Woodline Partners LP now owns 958,938 shares of the company’s stock worth $69,130,000 after purchasing an additional 955,026 shares during the last quarter. 77.64% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts recently commented on DOCU shares. Weiss Ratings raised shares of Docusign from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, June 3rd. Jefferies Financial Group upped their target price on shares of Docusign from $45.00 to $50.00 and gave the stock a “hold” rating in a research note on Friday, June 5th. Piper Sandler dropped their target price on shares of Docusign from $75.00 to $52.00 and set a “neutral” rating on the stock in a research note on Wednesday, March 18th. Needham & Company LLC reaffirmed a “hold” rating on shares of Docusign in a research note on Friday, June 5th. Finally, Citizens Jmp decreased their price target on shares of Docusign from $124.00 to $86.00 and set a “market outperform” rating for the company in a research note on Wednesday, March 18th. Three investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $60.27.

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.