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

DocuSign, Inc. (NASDAQ:DOCU - Get Free Report)'s share price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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 trading hands.

The company reported $0.86 earnings per share for the quarter, topping analysts' consensus estimates of $0.84 by $0.02. The company had revenue of $776.25 million during the quarter, compared to analyst estimates of $760.94 million. DocuSign had a net margin of 34.73% and a return on equity of 14.90%. The business's revenue for the quarter was up 9.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.76 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on DOCU. Piper Sandler upped their price target on shares of DocuSign from $60.00 to $90.00 and gave the stock a "neutral" rating in a research note on Friday, December 6th. JMP Securities reiterated a "market outperform" rating and issued a $124.00 target price on shares of DocuSign in a report on Tuesday, January 7th. Morgan Stanley boosted their target price on shares of DocuSign from $62.00 to $97.00 and gave the stock an "equal weight" rating in a report on Friday, December 6th. HSBC reiterated a "reduce" rating on shares of DocuSign in a report on Friday, December 6th. Finally, JPMorgan Chase & Co. upgraded shares of DocuSign from an "underweight" rating to a "neutral" rating and boosted their target price for the stock from $70.00 to $75.00 in a report on Monday, March 10th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and three have assigned a buy rating to the company's stock. According to data from MarketBeat.com, DocuSign currently has a consensus rating of "Hold" and a consensus price target of $95.58.

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Insiders Place Their Bets

In related news, CFO Blake Jeffrey Grayson sold 8,000 shares of the company's stock in a transaction on 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 directly owns 77,851 shares of the company's stock, valued at approximately $6,765,251.90. This represents a 9.32 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Allan C. Thygesen sold 40,000 shares of the company's stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $90.04, for a total transaction of $3,601,600.00. Following the sale, the chief executive officer now directly owns 156,050 shares of the company's stock, valued at approximately $14,050,742. This represents a 20.40 % decrease in their ownership of the stock. 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 ninety days. Corporate insiders own 1.66% of the company's stock.

Institutional Trading of DocuSign

Large investors have recently modified their holdings of the company. Toronto Dominion Bank raised its stake in DocuSign by 30.3% during the 3rd quarter. Toronto Dominion Bank now owns 26,159 shares of the company's stock valued at $1,624,000 after purchasing an additional 6,081 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in DocuSign by 1.2% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,328,355 shares of the company's stock valued at $82,478,000 after purchasing an additional 16,014 shares during the last quarter. Quantinno Capital Management LP raised its stake in DocuSign by 39.5% during the 3rd quarter. Quantinno Capital Management LP now owns 201,546 shares of the company's stock valued at $12,514,000 after purchasing an additional 57,104 shares during the last quarter. Rhumbline Advisers raised its stake in DocuSign by 118.8% during the 4th quarter. Rhumbline Advisers now owns 608,123 shares of the company's stock valued at $54,695,000 after purchasing an additional 330,136 shares during the last quarter. Finally, KBC Group NV raised its stake in DocuSign by 32.7% during the 4th quarter. KBC Group NV now owns 1,535,107 shares of the company's stock valued at $138,067,000 after purchasing an additional 378,233 shares during the last quarter. 77.64% of the stock is owned by institutional investors.

DocuSign Stock Performance

The stock has a market capitalization of $17.33 billion, a price-to-earnings ratio of 17.68, a PEG ratio of 6.94 and a beta of 1.02. The company's 50 day moving average is $87.97 and its 200 day moving average is $79.37.

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.