DocuSign (NASDAQ:DOCU) Shares Gap Up on Better-Than-Expected Earnings

DocuSign, Inc. (NASDAQ:DOCU) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $56.93, but opened at $60.24. DocuSign shares last traded at $57.89, with a volume of 1,291,288 shares.

The company reported $0.97 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.17. DocuSign had a return on equity of 15.44% and a net margin of 3.81%. The business had revenue of $736.03 million during the quarter, compared to the consensus estimate of $727.20 million. During the same period in the prior year, the company posted $0.09 EPS. The firm’s revenue for the quarter was up 7.0% compared to the same quarter last year.

Analysts Set New Price Targets

Several research analysts have commented on DOCU shares. Robert W. Baird increased their price objective on shares of DocuSign from $55.00 to $59.00 and gave the company a “neutral” rating in a report on Friday. Bank of America reduced their price objective on DocuSign from $72.00 to $60.00 and set a “neutral” rating on the stock in a research note on Friday, June 7th. Morgan Stanley lowered their target price on DocuSign from $65.00 to $62.00 and set an “equal weight” rating for the company in a research report on Friday, June 7th. Piper Sandler decreased their price target on shares of DocuSign from $65.00 to $60.00 and set a “neutral” rating on the stock in a research note on Friday, June 7th. Finally, Royal Bank of Canada lifted their price objective on shares of DocuSign from $52.00 to $57.00 and gave the stock a “sector perform” rating in a research note on Friday. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have given a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $60.64.

Insider Activity at DocuSign

In other news, insider James P. Shaughnessy sold 1,800 shares of the stock in a transaction that occurred on Tuesday, June 11th. The stock was sold at an average price of $50.98, for a total value of $91,764.00. Following the sale, the insider now directly owns 35,703 shares in the company, valued at $1,820,138.94. The sale was disclosed in a document filed with the SEC, which is available at this link. In other news, insider James P. Shaughnessy sold 1,800 shares of the company’s stock in a transaction dated Tuesday, June 11th. The shares were sold at an average price of $50.98, for a total value of $91,764.00. Following the transaction, the insider now directly owns 35,703 shares in the company, valued at $1,820,138.94. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Daniel D. Springer sold 70,983 shares of DocuSign stock in a transaction dated Monday, August 5th. The shares were sold at an average price of $49.84, for a total transaction of $3,537,792.72. Following the sale, the director now owns 891,373 shares of the company’s stock, valued at approximately $44,426,030.32. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 482,418 shares of company stock worth $25,524,100. Insiders own 1.66% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Metis Global Partners LLC purchased a new stake in shares of DocuSign in the 4th quarter worth $208,000. Charles Schwab Investment Management Inc. lifted its stake in DocuSign by 3.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,260,296 shares of the company’s stock worth $74,925,000 after acquiring an additional 44,646 shares during the period. Comerica Bank grew its holdings in DocuSign by 228.8% during the 1st quarter. Comerica Bank now owns 28,901 shares of the company’s stock worth $1,721,000 after acquiring an additional 20,110 shares in the last quarter. Vanguard Group Inc. increased its position in DocuSign by 2.0% during the 4th quarter. Vanguard Group Inc. now owns 21,399,739 shares of the company’s stock valued at $1,272,214,000 after purchasing an additional 417,352 shares during the period. Finally, KBC Group NV increased its position in DocuSign by 119.3% during the 4th quarter. KBC Group NV now owns 739,196 shares of the company’s stock valued at $43,945,000 after purchasing an additional 402,084 shares during the period. Institutional investors own 77.64% of the company’s stock.

DocuSign Stock Performance

The firm’s fifty day moving average price is $55.32 and its 200 day moving average price is $55.80. The firm has a market cap of $11.94 billion, a P/E ratio of 111.13, a price-to-earnings-growth ratio of 9.74 and a beta of 0.93.

DocuSign Company Profile

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.