DocuSign (NASDAQ:DOCU) Shares Gap Up Following Strong Earnings

DocuSign, Inc. (NASDAQ:DOCU) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $74.70, but opened at $81.52. DocuSign shares last traded at $86.44, with a volume of 4,122,687 shares changing hands.

The company reported $0.86 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.84 by $0.02. The company had revenue of $776.25 million during the quarter, compared to the consensus estimate of $760.94 million. DocuSign had a net margin of 34.73% and a return on equity of 14.90%. The firm’s quarterly revenue was up 9.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.76 earnings per share.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on DOCU shares. UBS Group decreased their target price on shares of DocuSign from $100.00 to $90.00 and set a “neutral” rating for the company in a research report on Friday. Wells Fargo & Company boosted their target price on shares of DocuSign from $70.00 to $73.00 and gave the company an “underweight” rating in a research report on Friday. JMP Securities restated a “market outperform” rating and set a $124.00 target price on shares of DocuSign in a research report on Tuesday, January 7th. Piper Sandler boosted their target price on shares of DocuSign from $60.00 to $90.00 and gave the company a “neutral” rating in a research report on Friday, December 6th. Finally, Wedbush reiterated a “neutral” rating and issued a $100.00 price objective on shares of DocuSign in a research report on Friday. Two research analysts have rated the stock with a sell rating, nine have given a hold rating and three have issued a buy rating to the company. According to MarketBeat, DocuSign has an average rating of “Hold” and a consensus price target of $95.58.

Insider Transactions at DocuSign

In other news, CFO Blake Jeffrey Grayson sold 8,000 shares of the business’s stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $86.90, for a total transaction of $695,200.00. Following the completion of the sale, the chief financial officer now owns 77,851 shares of the company’s stock, valued at $6,765,251.90. The trade was a 9.32 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Peter Solvik sold 10,000 shares of the business’s stock in a transaction dated Friday, January 10th. The stock was sold at an average price of $91.26, for a total transaction of $912,600.00. Following the sale, the director now directly owns 150,253 shares of the company’s stock, valued at $13,712,088.78. This represents a 6.24 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 104,422 shares of company stock valued at $9,665,394 over the last 90 days. Corporate insiders own 1.66% of the company’s stock.

Institutional Trading of DocuSign

Several large investors have recently bought and sold shares of DOCU. Itau Unibanco Holding S.A. purchased a new stake in DocuSign during the 3rd quarter valued at about $28,000. Kestra Investment Management LLC purchased a new stake in DocuSign during the 4th quarter valued at about $30,000. Brooklyn Investment Group purchased a new stake in DocuSign during the 3rd quarter valued at about $33,000. Modus Advisors LLC purchased a new stake in DocuSign during the 4th quarter valued at about $36,000. Finally, First Horizon Advisors Inc. grew its stake in DocuSign by 102.6% during the 4th quarter. First Horizon Advisors Inc. now owns 397 shares of the company’s stock valued at $36,000 after acquiring an additional 201 shares in the last quarter. Hedge funds and other institutional investors own 77.64% of the company’s stock.

DocuSign Trading Up 14.8 %

The company has a market capitalization of $17.33 billion, a price-to-earnings ratio of 17.68, a price-to-earnings-growth ratio of 6.94 and a beta of 1.02. The firm’s fifty day simple moving average is $87.97 and its two-hundred day simple moving average is $79.22.

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.