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

Shares of DocuSign, Inc. (NASDAQ:DOCU) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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 (EPS) for the quarter, beating analysts’ consensus estimates 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 quarter in the previous year, the business earned $0.09 EPS. The company’s quarterly revenue was up 7.0% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the stock. Citigroup lifted their price target on shares of DocuSign from $86.00 to $87.00 and gave the stock a “buy” rating in a report on Friday. Wells Fargo & Company lifted their price target on shares of DocuSign from $48.00 to $50.00 and gave the stock an “underweight” rating in a report on Friday. Robert W. Baird lifted their price target on shares of DocuSign from $55.00 to $59.00 and gave the stock a “neutral” rating in a report on Friday. JMP Securities reaffirmed a “market outperform” rating and issued a $84.00 price target on shares of DocuSign in a report on Thursday. Finally, Piper Sandler lowered their price target on shares of DocuSign from $65.00 to $60.00 and set a “neutral” rating on the stock in a report on Friday, June 7th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $61.45.

Insider Buying and Selling

In other DocuSign news, Director Daniel D. Springer sold 70,983 shares of the company’s 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 completion of the sale, the director now directly owns 891,373 shares in the company, valued at $44,426,030.32. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. In other DocuSign 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 transaction of $91,764.00. Following the completion of the sale, 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 accessible through this link. Also, Director Daniel D. Springer sold 70,983 shares of the company’s 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 transaction, the director now directly owns 891,373 shares of the company’s stock, valued at $44,426,030.32. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 482,418 shares of company stock worth $25,524,100. Corporate insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On DocuSign

Several hedge funds and other institutional investors have recently modified their holdings of the company. Massmutual Trust Co. FSB ADV grew its holdings in DocuSign by 5,000.0% in the second quarter. Massmutual Trust Co. FSB ADV now owns 510 shares of the company’s stock worth $27,000 after purchasing an additional 500 shares during the period. Mather Group LLC. grew its holdings in shares of DocuSign by 4,338.5% during the second quarter. Mather Group LLC. now owns 577 shares of the company’s stock valued at $31,000 after buying an additional 564 shares during the last quarter. Register Financial Advisors LLC purchased a new stake in shares of DocuSign during the first quarter valued at approximately $37,000. ICA Group Wealth Management LLC purchased a new stake in shares of DocuSign during the fourth quarter valued at approximately $39,000. Finally, nVerses Capital LLC purchased a new stake in shares of DocuSign during the second quarter valued at approximately $48,000. 77.64% of the stock is owned by institutional investors.

DocuSign Stock Up 4.0 %

The stock’s fifty day moving average price is $55.44 and its 200 day moving average price is $55.86. The stock has a market cap of $12.12 billion, a PE ratio of 113.83, a PEG ratio of 9.74 and a beta of 0.93.

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.