DocuSign (NASDAQ:DOCU) Shares Down 2.6% – Time to Sell?

DocuSign, Inc. (NASDAQ:DOCU) shares dropped 2.6% during trading on Wednesday . The company traded as low as $82.50 and last traded at $82.80. Approximately 322,282 shares were traded during mid-day trading, a decline of 88% from the average daily volume of 2,600,686 shares. The stock had previously closed at $85.01.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on DOCU. HSBC reaffirmed a “reduce” rating on shares of DocuSign in a research note on Friday, December 6th. Wedbush reaffirmed a “neutral” rating and issued a $100.00 target price on shares of DocuSign in a research report on Friday, March 14th. JMP Securities reissued a “market outperform” rating and set a $124.00 price target on shares of DocuSign in a research report on Tuesday, January 7th. Jefferies Financial Group upped their price objective on shares of DocuSign from $80.00 to $95.00 and gave the stock a “buy” rating in a report on Tuesday, December 3rd. Finally, Citigroup lifted their target price on shares of DocuSign from $113.00 to $115.00 and gave the company a “buy” rating in a report on Friday, March 14th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $95.00.

DocuSign Price Performance

The stock has a market capitalization of $17.19 billion, a P/E ratio of 17.55, a price-to-earnings-growth ratio of 6.94 and a beta of 1.02. The business’s 50 day moving average price is $87.58 and its 200 day moving average price is $79.95.

DocuSign (NASDAQ:DOCU) last announced its earnings results on Thursday, March 13th. The company reported $0.86 earnings per share for the quarter, beating analysts’ consensus estimates of $0.84 by $0.02. The business had revenue of $776.25 million during the quarter, compared to analyst estimates of $760.94 million. DocuSign had a net margin of 34.73% and a return on equity of 14.90%. The company’s quarterly revenue was up 9.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.76 EPS. As a group, analysts forecast that DocuSign, Inc. will post 1.17 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other DocuSign news, insider Robert Chatwani sold 15,706 shares of the stock in a transaction on Wednesday, March 19th. The stock was sold at an average price of $83.19, for a total value of $1,306,582.14. Following the completion of the sale, the insider now owns 76,842 shares in the company, valued at approximately $6,392,485.98. This represents a 16.97 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Allan C. Thygesen sold 40,000 shares of the business’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $90.04, for a total value of $3,601,600.00. Following the completion of the transaction, the chief executive officer now owns 156,050 shares in the company, valued at $14,050,742. The trade was a 20.40 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 97,851 shares of company stock valued at $8,579,369. Insiders own 1.66% of the company’s stock.

Institutional Investors Weigh In On DocuSign

Several institutional investors and hedge funds have recently modified their holdings of the stock. Itau Unibanco Holding S.A. purchased a new position in DocuSign during the third quarter valued at $28,000. Kestra Investment Management LLC purchased a new position in shares of DocuSign during the fourth quarter valued at about $30,000. Brooklyn Investment Group bought a new stake in shares of DocuSign in the third quarter worth about $33,000. Modus Advisors LLC purchased a new stake in shares of DocuSign in the fourth quarter worth about $36,000. Finally, First Horizon Advisors Inc. boosted its stake in DocuSign by 102.6% during the fourth quarter. First Horizon Advisors Inc. now owns 397 shares of the company’s stock valued at $36,000 after buying an additional 201 shares during the last quarter. Institutional investors own 77.64% of the company’s stock.

About DocuSign

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.