Docusign Inc. (NASDAQ:DOCU) Sees Large Growth in Short Interest

Docusign Inc. (NASDAQ:DOCU) saw a large increase in short interest in March. As of March 31st, there was short interest totaling 18,154,041 shares, an increase of 33.1% from the March 15th total of 13,642,829 shares. Based on an average daily volume of 6,117,449 shares, the short-interest ratio is currently 3.0 days. Currently, 9.4% of the shares of the stock are sold short.

Docusign Stock Up 5.0%

DOCU traded up $2.21 during trading on Wednesday, reaching $46.84. 3,788,438 shares of the company’s stock were exchanged, compared to its average volume of 4,920,316. The company has a market capitalization of $9.11 billion, a P/E ratio of 31.65, a PEG ratio of 1.73 and a beta of 0.99. The business has a 50 day moving average price of $46.32 and a 200 day moving average price of $59.58. Docusign has a fifty-two week low of $40.16 and a fifty-two week high of $94.67.

Docusign (NASDAQ:DOCU) last issued its quarterly earnings data on Tuesday, March 17th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.06. Docusign had a return on equity of 16.86% and a net margin of 9.60%.The company had revenue of $836.86 million during the quarter, compared to analysts’ expectations of $828.23 million. During the same period last year, the business earned $0.86 earnings per share. The business’s revenue was up 7.8% on a year-over-year basis. As a group, research analysts forecast that Docusign will post 1.17 EPS for the current year.

Docusign announced that its Board of Directors has authorized a stock buyback program on Tuesday, March 17th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to repurchase up to 21% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on DOCU shares. Needham & Company LLC reaffirmed a “hold” rating on shares of Docusign in a report on Tuesday, March 10th. Jefferies Financial Group lowered shares of Docusign from a “buy” rating to a “hold” rating and lowered their target price for the company from $105.00 to $45.00 in a research note on Monday, February 23rd. Piper Sandler lowered their target price on shares of Docusign from $75.00 to $52.00 and set a “neutral” rating on the stock in a research note on Wednesday, March 18th. Wells Fargo & Company lowered their target price on shares of Docusign from $75.00 to $60.00 and set an “equal weight” rating on the stock in a research note on Wednesday, March 18th. Finally, Robert W. Baird lowered their target price on shares of Docusign from $75.00 to $55.00 and set a “neutral” rating on the stock in a research note on Wednesday, March 18th. Four analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $61.40.

Insider Activity at Docusign

In other Docusign news, CRO Paula Hansen sold 6,000 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $46.84, for a total value of $281,040.00. Following the completion of the transaction, the executive directly owned 79,233 shares in the company, valued at $3,711,273.72. This trade represents a 7.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Allan C. Thygesen sold 26,250 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $47.78, for a total transaction of $1,254,225.00. Following the completion of the transaction, the chief executive officer owned 152,237 shares of the company’s stock, valued at approximately $7,273,883.86. The trade was a 14.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 64,673 shares of company stock worth $3,077,699. Company insiders own 1.66% of the company’s stock.

Institutional Trading of Docusign

A number of institutional investors and hedge funds have recently modified their holdings of DOCU. Central Pacific Bank Trust Division acquired a new position in shares of Docusign in the 4th quarter valued at approximately $25,000. Modus Advisors LLC acquired a new position in shares of Docusign in the 4th quarter valued at approximately $27,000. Torren Management LLC acquired a new position in shares of Docusign in the 4th quarter valued at approximately $28,000. Aventura Private Wealth LLC acquired a new position in shares of Docusign in the 4th quarter valued at approximately $30,000. Finally, True Wealth Design LLC grew its position in shares of Docusign by 105.2% in the 4th quarter. True Wealth Design LLC now owns 433 shares of the company’s stock valued at $30,000 after purchasing an additional 222 shares during the period. 77.64% of the stock is owned by institutional investors.

About Docusign

DocuSign, Inc (NASDAQ: DOCU) is a leading provider of electronic signature and digital transaction management solutions. The company’s flagship offering, DocuSign eSignature, enables organizations to send, sign and manage legally binding electronic agreements securely in the cloud. Beyond eSignature, DocuSign’s Agreement Cloud combines contract lifecycle management, document generation, and workflow automation to streamline agreement processes from initiation through execution and storage.

DocuSign’s platform serves a diverse customer base spanning industries such as finance, real estate, healthcare, technology, and government.