Traders Buy Large Volume of Call Options on Docusign (NASDAQ:DOCU)

Docusign Inc. (NASDAQ:DOCU) was the target of unusually large options trading on Tuesday. Stock traders acquired 14,380 call options on the stock. This represents an increase of approximately 66% compared to the typical volume of 8,682 call options.

Analysts Set New Price Targets

Several brokerages have commented on DOCU. Wedbush lowered their price objective on Docusign from $60.00 to $58.00 and set a “neutral” rating for the company in a research report on Friday, June 5th. Citizens Jmp reissued a “market outperform” rating and set a $86.00 price target on shares of Docusign in a research report on Tuesday. UBS Group set a $60.00 price objective on shares of Docusign in a report on Friday, June 5th. Citigroup reaffirmed a “market outperform” rating on shares of Docusign in a research note on Tuesday. Finally, BTIG Research dropped their price target on Docusign from $70.00 to $60.00 and set a “buy” rating on the stock in a research report on Friday, June 5th. Four equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Docusign currently has a consensus rating of “Hold” and an average target price of $60.27.

Docusign Price Performance

Shares of Docusign stock traded up $1.52 during trading on Tuesday, hitting $61.34. 1,116,392 shares of the company’s stock traded hands, compared to its average volume of 4,163,646. Docusign has a 1 year low of $40.16 and a 1 year high of $86.65. The stock has a market capitalization of $11.71 billion, a P/E ratio of 39.83, a PEG ratio of 1.83 and a beta of 0.87. The business has a 50-day simple moving average of $50.26 and a 200-day simple moving average of $48.39.

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 the consensus estimate of $0.99 by $0.10. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The business had revenue of $830.24 million for the quarter, compared to analysts’ expectations of $824.71 million. During the same quarter in the prior year, the business earned $0.90 EPS. The business’s revenue for the quarter was up 8.7% compared to the same quarter last year. On average, equities analysts predict that Docusign will post 2.03 earnings per share for the current fiscal year.

Insider Transactions at Docusign

In other Docusign news, CFO Blake Jeffrey Grayson sold 15,000 shares of the business’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $60.00, for a total transaction of $900,000.00. Following the transaction, the chief financial officer directly owned 126,429 shares of the company’s stock, valued at approximately $7,585,740. The trade was a 10.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Paula Hansen sold 6,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total transaction of $273,240.00. Following the completion of the sale, the executive directly owned 89,972 shares of the company’s stock, valued at approximately $4,097,324.88. This represents a 6.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 91,695 shares of company stock worth $4,376,002. Corporate insiders own 0.59% of the company’s stock.

Institutional Investors Weigh In On Docusign

Several hedge funds and other institutional investors have recently made changes to their positions in DOCU. Empowered Funds LLC acquired a new position in Docusign in the 2nd quarter worth approximately $2,719,000. United Capital Financial Advisors LLC acquired a new stake in shares of Docusign in the second quarter worth $690,000. Centaurus Financial Inc. acquired a new stake in shares of Docusign in the second quarter worth $1,201,000. Jefferies Financial Group Inc. purchased a new position in shares of Docusign during the second quarter worth $691,000. Finally, Public Employees Retirement System of Ohio acquired a new position in Docusign during the second quarter valued at $2,949,000. Hedge funds and other institutional investors own 77.64% of the company’s stock.

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.