The Vanguard Group, Inc. recently announced the acquisition of new stake in DocuSign Inc (NASDAQ:DOCU). The institutional investor has increased its shareholding in the Technology company by 2.40% to 20.53 million shares with purchase of 0.48 million shares. This fresh investment now brings its stake to 10.10% valued currently at $798.22 million. In addition, BlackRock Fund Advisors raised its holdings by 30474.0 to 9.23 million shares. And T. Rowe Price Associates, Inc. has lifted its position by 61.39% or 3.42 million shares – to 9.0 million shares.
With over 21.4 million DocuSign Inc (DOCU) shares trading Friday and a closing price of $49.73 on the day, the dollar volume was approximately $1.06 billion. The shares have shown a negative half year performance of -12.78% and its price on 12/08/23 gained nearly 4.83%. Currently, there are 201.90M common shares owned by the public and among those 200.98M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 23 analysts who have offered their price forecasts for DOCU have a consensus price objective of $57.40. The analysts have set the share’s price value over the next 12 months at a high of $87.00 and a low of $44.00. The average price target is 13.36% above its recent price level and a downside to the estimated low will see the stock lose -13.02% over that period. But an upside of 42.84% will see the stock hit the forecast high price target while median target price for the stock is $50.00.
Insiders at the company have transacted a total of 99 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 54 of these insider trades were purchases, accounting for 1,370,190 shares. Insider sales of the common stock occurred on 45 occasions, with total insider shares sold totaling 1,733,223 shares.
The top 3 mutual fund holders in DocuSign Inc are Vanguard Total Stock Market ETF, American Funds Growth Fund of Ame, and Vanguard Mid Cap Index Fund. Vanguard Total Stock Market ETF owns 6.31 million shares of the company’s stock, all valued at over $245.37 million. The company bought an additional 35595.0 shares recently to bring their total holdings to about 3.11% of the shares outstanding. American Funds Growth Fund of Ame sold -1.57 million shares to see its total holdings shrink to 4.62 million shares valued at over $179.43 million and representing 2.27% of the shares outstanding. Vanguard Mid Cap Index Fund sold 4231.0 shares to bring its total holdings to over 4.58 million shares at a value of $178.07 million. Vanguard Mid Cap Index Fund now owns shares totaling to 2.25% of the shares outstanding.
Shares of DocuSign Inc (NASDAQ: DOCU) opened at $46.00, down -$1.44 from a prior closing price of $47.44. However, the script later moved the day high at 50.50, up 4.83%. The company’s stock has a 5-day price change of 8.13% and 5.79% over the past three months. DOCU shares are trading -10.27% year to date (YTD), with the 12-month market performance up to 18.18% higher. It has a 12-month low price of $38.11 and touched a high of $69.45 over the same period. DOCU has an average intraday trading volume of 3.71 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 14.37%, 18.74%, and -0.26% respectively.
Institutional ownership of DocuSign Inc (NASDAQ: DOCU) shares accounts for 75.33% of the company’s 201.90M shares outstanding. Mutual fund holders own 36.47%, while other institutional holders and individual stakeholders account for 39.34% and 21.35% respectively.
It has a market capitalization of $10.11B and a beta (3y monthly) value of 0.92. The stock’s trailing 12-month PE ratio is 199.24, while the earnings-per-share (ttm) stands at $0.25. The company has a PEG of 9.96 and a Quick Ratio of 0.93 with the debt-to-equity ratio at 0.87. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.13% over the week and 3.34% over the month.
Analysts forecast that DocuSign Inc (DOCU) will achieve an EPS of $0.63 for the current quarter, $0.58 for the next quarter and $2.73 for 2025. The lowest estimate earnings-per-share for the quarter is $0.59 while analysts give the company a high EPS estimate of $0.68. Comparatively, EPS for the current quarter was $0.57 a year ago. Earnings per share for the fiscal year are expected to increase by 40.22%, and 0.49% over the next financial year. EPS should grow at an annualized rate of 20.00% over the next five years, compared to -7.59% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 23 brokerage firm advisors rate DocuSign Inc (DOCU) as a “Moderate Buy” at a consensus score of 2.78. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 14 of the 23 advise that investors “hold,” and 3 rated it as a “Sell.”
Looking at the support for the DOCU, a number of firms have released research notes about the stock. HSBC Securities stated their Hold rating for the stock in a research note on September 27, 2023, with the firm’s price target at $42.
