DocuSign (NASDAQ:DOCU) Trading Down 4% – What’s Next?

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

Analysts Set New Price Targets

Several analysts recently commented on the company. Royal Bank of Canada raised their target price on DocuSign from $52.00 to $57.00 and gave the company a “sector perform” rating in a research report on Friday, September 6th. Citigroup lifted their target price on DocuSign from $86.00 to $87.00 and gave the company a “buy” rating in a research note on Friday, September 6th. Robert W. Baird lifted their target price on DocuSign from $55.00 to $59.00 and gave the company a “neutral” rating in a research note on Friday, September 6th. JMP Securities lifted their target price on DocuSign from $84.00 to $108.00 and gave the company a “market outperform” rating in a research note on Friday, November 22nd. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of DocuSign in a research note on Friday, September 6th. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and two have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $65.80.

DocuSign Trading Down 4.8 %

The company has a market capitalization of $16.49 billion, a price-to-earnings ratio of 18.00, a PEG ratio of 9.05 and a beta of 0.90. The firm has a 50-day moving average price of $70.63 and a 200-day moving average price of $60.66.

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

Insider Buying and Selling

In other news, insider Robert Chatwani sold 14,799 shares of DocuSign stock in a transaction on Wednesday, September 18th. The stock was sold at an average price of $55.46, for a total transaction of $820,752.54. Following the transaction, the insider now owns 70,748 shares in the company, valued at approximately $3,923,684.08. The trade was a 17.30 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Teresa Briggs sold 534 shares of DocuSign stock in a transaction on Monday, September 16th. The shares were sold at an average price of $56.56, for a total value of $30,203.04. Following the transaction, the director now owns 7,202 shares in the company, valued at $407,345.12. This represents a 6.90 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 69,558 shares of company stock worth $4,272,768 in the last three months. 1.66% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DocuSign

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DOCU. Thrivent Financial for Lutherans acquired a new position in shares of DocuSign in the second quarter worth $115,795,000. Pacer Advisors Inc. lifted its stake in DocuSign by 77.9% in the second quarter. Pacer Advisors Inc. now owns 3,519,969 shares of the company’s stock valued at $188,318,000 after acquiring an additional 1,541,816 shares during the last quarter. KBC Group NV grew its position in DocuSign by 209.8% in the third quarter. KBC Group NV now owns 1,156,874 shares of the company’s stock worth $71,830,000 after acquiring an additional 783,419 shares in the last quarter. Renaissance Technologies LLC increased its stake in shares of DocuSign by 18.3% during the 2nd quarter. Renaissance Technologies LLC now owns 3,729,314 shares of the company’s stock worth $199,518,000 after purchasing an additional 576,414 shares during the last quarter. Finally, Skandinaviska Enskilda Banken AB publ lifted its stake in shares of DocuSign by 151.3% in the 2nd quarter. Skandinaviska Enskilda Banken AB publ now owns 865,872 shares of the company’s stock valued at $46,324,000 after purchasing an additional 521,292 shares during the last quarter. Hedge funds and other institutional investors own 77.64% of the company’s stock.

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.