Docusign (NASDAQ:DOCU) Shares Gap Up – Time to Buy?

Docusign Inc. (NASDAQ:DOCU)’s share price gapped up before the market opened on Tuesday . The stock had previously closed at $49.02, but opened at $51.13. Docusign shares last traded at $50.9560, with a volume of 578,249 shares trading hands.

Analysts Set New Price Targets

A number of analysts recently weighed in on DOCU shares. Wells Fargo & Company cut their price target on shares of Docusign from $75.00 to $60.00 and set an “equal weight” rating on the stock in a research report on Wednesday, March 18th. Weiss Ratings downgraded shares of Docusign from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, April 15th. Citigroup downgraded shares of Docusign from a “buy” rating to a “neutral” rating and cut their price target for the company from $99.00 to $50.00 in a research report on Friday, April 10th. 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 research report on Wednesday, March 18th. Finally, Robert W. Baird cut their price target on shares of Docusign from $75.00 to $55.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 18th. Three equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $61.40.

Docusign Trading Up 0.6%

The business has a 50 day moving average of $46.94 and a 200-day moving average of $55.66. The firm has a market capitalization of $9.66 billion, a P/E ratio of 33.60, a PEG ratio of 1.88 and a beta of 0.88.

Docusign (NASDAQ:DOCU) last posted its earnings results on Tuesday, March 17th. The company reported $1.01 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.95 by $0.06. Docusign had a return on equity of 16.86% and a net margin of 9.60%.The business had revenue of $836.86 million during the quarter, compared to analysts’ expectations of $828.23 million. During the same period in the prior year, the business earned $0.86 EPS. Docusign’s revenue for the quarter was up 7.8% compared to the same quarter last year. On average, analysts anticipate that Docusign Inc. will post 1.76 EPS for the current fiscal year.

Docusign announced that its board has initiated a share repurchase program on Tuesday, March 17th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to repurchase up to 21% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Docusign

In related news, insider James P. Shaughnessy sold 12,000 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $46.83, for a total transaction of $561,960.00. Following the completion of the sale, the insider directly owned 53,631 shares of the company’s stock, valued at approximately $2,511,539.73. This represents a 18.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 16,696 shares of the stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $48.10, for a total value of $803,077.60. Following the sale, the insider directly owned 72,458 shares of the company’s stock, valued at approximately $3,485,229.80. The trade was a 18.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 64,673 shares of company stock worth $3,077,699 in the last quarter. Company insiders own 0.59% of the company’s stock.

Hedge Funds Weigh In On Docusign

Several hedge funds have recently made changes to their positions in DOCU. Central Pacific Bank Trust Division bought a new position in shares of Docusign during the 4th quarter worth approximately $25,000. Modus Advisors LLC bought a new position in shares of Docusign during the 4th quarter worth approximately $27,000. Torren Management LLC bought a new position in shares of Docusign during the 4th quarter worth approximately $28,000. Aventura Private Wealth LLC bought a new position in shares of Docusign during the 4th quarter worth approximately $30,000. Finally, True Wealth Design LLC grew its stake in shares of 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 acquiring an additional 222 shares in the last quarter. 77.64% of the stock is owned by institutional investors.

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.