Docusign Sees Unusually High Options Volume (NASDAQ:DOCU)

Docusign Inc. (NASDAQ:DOCU) was the target of unusually large options trading activity on Monday. Stock traders purchased 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

NASDAQ DOCU traded down $1.08 on Monday, reaching $43.96. 3,683,282 shares of the company’s stock traded hands, compared to its average volume of 4,395,423. The firm has a market cap of $8.39 billion, a price-to-earnings ratio of 28.54, a P/E/G ratio of 1.36 and a beta of 0.92. The stock has a 50 day moving average price of $47.56 and a 200-day moving average price of $53.38. Docusign has a fifty-two week low of $40.16 and a fifty-two week high of $86.65.

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

Docusign declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, March 17th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to purchase up to 21% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Docusign news, Director Mary Agnes Wilderotter sold 3,000 shares of the stock in a transaction dated 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 sale, the director directly owned 59,803 shares in the company, valued at approximately $2,879,514.45. This trade represents a 4.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider James P. Shaughnessy sold 12,000 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $46.83, for a total value of $561,960.00. Following the completion of the sale, the insider owned 53,631 shares of the company’s stock, valued at approximately $2,511,539.73. This trade represents a 18.28% 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. In the last ninety days, insiders sold 65,489 shares of company stock valued at $3,125,814. 0.59% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of DOCU. Norges Bank purchased a new position in Docusign during the fourth quarter valued at approximately $186,795,000. Arrowstreet Capital Limited Partnership raised its position in Docusign by 76.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company’s stock valued at $250,568,000 after acquiring an additional 2,283,996 shares in the last quarter. Capital World Investors raised its position in Docusign by 38.1% during the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company’s stock valued at $397,801,000 after acquiring an additional 1,603,900 shares in the last quarter. SG Americas Securities LLC raised its position in Docusign by 452.3% during the first quarter. SG Americas Securities LLC now owns 1,314,632 shares of the company’s stock valued at $62,327,000 after acquiring an additional 1,076,622 shares in the last quarter. Finally, Woodline Partners LP raised its position in Docusign by 24,412.7% during the third quarter. Woodline Partners LP now owns 958,938 shares of the company’s stock valued at $69,130,000 after acquiring an additional 955,026 shares in the last quarter. 77.64% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. UBS Group set a $60.00 price target on Docusign in a research note on Friday, June 5th. BTIG Research decreased their price target on Docusign from $70.00 to $60.00 and set a “buy” rating for the company in a research note on Friday, June 5th. Citizens Jmp decreased their price target on Docusign from $124.00 to $86.00 and set a “market outperform” rating for the company in a research note on Wednesday, March 18th. Wedbush reduced their price objective on Docusign from $60.00 to $58.00 and set a “neutral” rating for the company in a research note on Friday, June 5th. Finally, Jefferies Financial Group raised their price objective on Docusign from $45.00 to $50.00 and gave the stock a “hold” rating in a research note on Friday, June 5th. Three equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Docusign has an average 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.