DocuSign (NASDAQ:DOCU) Trading Down 4% – Should You Sell?

DocuSign, Inc. (NASDAQ:DOCU)’s share price fell 4% on Wednesday . The company traded as low as $81.86 and last traded at $81.92. 435,399 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 2,867,433 shares. The stock had previously closed at $85.30.

Analysts Set New Price Targets

DOCU has been the subject of a number of research reports. Citigroup boosted their price target on DocuSign from $86.00 to $87.00 and gave the company a “buy” rating in a research report on Friday, September 6th. Royal Bank of Canada increased their target price on shares of DocuSign from $52.00 to $57.00 and gave the stock a “sector perform” rating in a research report on Friday, September 6th. Robert W. Baird raised their price target on shares of DocuSign from $55.00 to $59.00 and gave the company a “neutral” rating in a report on Friday, September 6th. Wells Fargo & Company boosted their price objective on shares of DocuSign from $48.00 to $50.00 and gave the stock an “underweight” rating in a research note on Friday, September 6th. Finally, JMP Securities raised their target price on shares of DocuSign from $84.00 to $108.00 and gave the company a “market outperform” rating in a research note on Friday, November 22nd. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have issued a buy rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $65.80.

DocuSign Trading Down 5.8 %

The business’s 50-day simple moving average is $71.56 and its two-hundred day simple moving average is $60.93. The company has a market capitalization of $16.31 billion, a PE ratio of 16.96, a PEG ratio of 9.05 and a beta of 0.90.

DocuSign (NASDAQ:DOCU) last issued its quarterly earnings results on Thursday, September 5th. The company reported $0.97 EPS for the quarter, beating analysts’ consensus estimates of $0.80 by $0.17. DocuSign had a return on equity of 16.18% and a net margin of 34.56%. The firm had revenue of $736.03 million during the quarter, compared to the consensus estimate of $727.20 million. During the same quarter in the prior year, the business posted $0.09 earnings per share. DocuSign’s revenue for the quarter was up 7.0% on a year-over-year basis. On average, analysts forecast that DocuSign, Inc. will post 1.01 EPS for the current year.

Insider Transactions at DocuSign

In other news, Director Teresa Briggs sold 534 shares of the stock in a transaction dated Monday, September 16th. The shares were sold at an average price of $56.56, for a total transaction of $30,203.04. Following the transaction, the director now owns 7,202 shares of the company’s stock, valued at approximately $407,345.12. This trade represents a 6.90 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Robert Chatwani sold 14,799 shares of the business’s stock in a transaction dated Wednesday, September 18th. The shares were sold at an average price of $55.46, for a total value of $820,752.54. Following the completion of the sale, the insider now directly owns 70,748 shares of the company’s stock, valued at approximately $3,923,684.08. This represents a 17.30 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 69,558 shares of company stock valued at $4,272,768. 1.66% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DocuSign

Several large investors have recently added to or reduced their stakes in the company. J.W. Cole Advisors Inc. increased its stake in DocuSign by 2.0% during the third quarter. J.W. Cole Advisors Inc. now owns 7,946 shares of the company’s stock valued at $493,000 after purchasing an additional 155 shares during the last quarter. Resonant Capital Advisors LLC raised its stake in DocuSign by 0.9% during the third quarter. Resonant Capital Advisors LLC now owns 17,516 shares of the company’s stock worth $1,088,000 after acquiring an additional 157 shares during the period. Optimist Retirement Group LLC lifted its holdings in DocuSign by 3.8% in the third quarter. Optimist Retirement Group LLC now owns 4,416 shares of the company’s stock worth $274,000 after acquiring an additional 161 shares during the last quarter. V Square Quantitative Management LLC boosted its stake in DocuSign by 6.0% in the third quarter. V Square Quantitative Management LLC now owns 3,019 shares of the company’s stock valued at $187,000 after acquiring an additional 172 shares during the period. Finally, Dakota Wealth Management grew its holdings in shares of DocuSign by 0.8% during the second quarter. Dakota Wealth Management now owns 23,022 shares of the company’s stock valued at $1,232,000 after purchasing an additional 181 shares during the last quarter. 77.64% of the stock is currently owned by institutional investors.

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.