DocuSign targets unusually large options trades (NASDAQ:DOCU)

DocuSign, Inc. (NASDAQ:DOCU – Get Rating) was the target of unusually heavy options trading activity on Friday. Traders bought 52,626 call options on the stock. This represents a 32% increase from the typical volume of 39,974 call options.

Institutional entries and exits

A number of institutional investors and hedge funds have recently increased or reduced their stake in DOCU. Capital World Investors increased its equity stake in DocuSign by 128.3% in the first quarter. Capital World Investors now owns 5,683,838 shares of the company worth $608,853,000 after purchasing an additional 3,193,727 shares last quarter. Vanguard Group Inc. increased its stake in DocuSign shares by 20.3% during the first quarter. Vanguard Group Inc. now owns 17,308,877 shares of the company worth $1,854,127,000 after purchasing an additional 2,917,683 shares last quarter. Flossbach Von Storch AG increased its equity stake in DocuSign by 1,736.8% during the first quarter. Flossbach Von Storch AG now owns 2,387,867 shares of the company worth $255,788,000 after purchasing an additional 2,257,867 shares in the last quarter. Polen Capital Management LLC increased its stake in DocuSign stock by 48.5% during the first quarter. Polen Capital Management LLC now owns 5,551,792 shares of the company worth $594,708,000 after purchasing an additional 1,813,284 shares last quarter. Finally, Norges Bank purchased a new stake in DocuSign stock during the fourth quarter for a value of approximately $253,934,000. Hedge funds and other institutional investors hold 76.18% of the company’s shares.

DocuSign Stock Performance

DOCU fell $3.70 on Friday, hitting $56.58. The stock recorded a trading volume of 6,866,468 shares, compared to an average volume of 5,234,749 shares. DocuSign has a 12-month minimum of $53.25 and a 12-month maximum of $288.50. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt ratio of 1.77. The company’s 50-day moving average price is $64.22 and its two-hundred-day moving average price is $77.33. The company has a market capitalization of $11.36 billion, a P/E ratio of -104.80 and a beta of 1.23.

DocuSign (NASDAQ:DOCU – Get Rating) last released its quarterly earnings data on Thursday, September 8. The company reported earnings per share of $0.44 for the quarter, beating consensus analyst estimates of $0.42 by $0.02. DocuSign had a negative net margin of 4.65% and a negative return on equity of 21.74%. The company posted revenue of $622.18 million in the quarter, compared to $602.25 million expected by analysts. In the same quarter of the previous year, the company had earned earnings per share of ($0.07). The company’s revenue for the quarter increased 21.6% on an annual basis. Sell-side analysts expect DocuSign to post -0.45 earnings per share for the current year.

A Wall Street analyst gives his opinion

Several equity research analysts have recently commented on the stock. Piper Sandler downgraded DocuSign shares from a “neutral” rating to an “underweight” rating and lowered her price target for the stock from $65.00 to $54.00 in a research note from the Wednesday July 20. JPMorgan Chase & Co. downgraded DocuSign shares from an “underweight” to a “neutral” rating and set a price target of $65.00 for the company in a Friday 9 research note. september. Wolfe Research raised its price target on DocuSign stock from $50.00 to $53.00 and gave the stock an “underperforming” rating in a research note on Monday. Wedbush raised its price target on DocuSign shares from $50.00 to $55.00 and gave the stock an “underperforming” rating in a Friday, Sept. 9 research note. Finally, Robert W. Baird raised his price target on DocuSign shares from $60.00 to $70.00 in a Friday, September 9 report. Three equity research analysts have assigned the stock a sell rating, ten have issued a hold rating and two have assigned the stock a buy rating. According to MarketBeat.com, DocuSign currently has a consensus rating of “Hold” and an average price target of $65.75.

About DocuSign

(Get an evaluation)

DocuSign, Inc provides electronic signature software in the United States and around the world. The company provides an e-signature solution that enables businesses to digitally prepare, sign, execute and manage agreements. It also offers CLM, which automates workflows throughout the agreement process; Information that uses artificial intelligence (AI) to research and analyze agreements by legal concepts and clauses; Gen for Salesforce, which allows sales reps to automatically generate agreements in a few clicks from Salesforce; Negotiate for Salesforce which supports approvals, document comparisons and version control; Analyzer, which helps customers understand what they’re signing before signing; and CLM+ which provide AI-powered contract lifecycle management.

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