5 Investors Betting Big on DocuSign (DOCU) Stock

  • DocuSign (DOCU) stock is on the rise again after a difficult year.
  • Shares are surging more than 12% after beating third-quarter earnings estimates.
  • Several prominent institutional investors still stand behind DOCU stock.
DocuSign Stock May Be Overdone, but It's Still a Great Long-Term Buy
Source: Sundry Photography / Shutterstock.com

Some of the most recent coverage of DocuSign (NASDAQ:DOCU) ranks it among tech stocks to sell. That’s unsurprising, given how the company has struggled throughout much of 2022. As of this writing, DOCU stock is down more than 65% year-to-date (YTD). However, shares have rebounded more than 20% over the past month as market conditions shift in DocuSign’s favor.

Today, DOCU stock is surging 12% after reporting better-than-expected third-quarter earnings. For starters, the company’s revenue of $645.5 million represents an 18% increase from the previous year, topping both its own guidance range and the consensus estimate. Billings also increased by 17% during the period, while both the non-GAAP gross margin and operating margin came in ahead of the target ranges.

This suggests that this former pandemic-era winner may be finding ways to adapt in a volatile market. If that’s true, DocuSign can definitely turn around in 2023. InvestorPlace contributor Chris Lau recently noted that the company may also see some important catalysts in the coming months, including possible length increases for its contracts with clients. Lau also suggests that a larger company may become interested in acquiring DocuSign to “strengthen its e-signature offerings.”

Either of these scenarios would help DOCU stock rebound in the coming year, creating a valuable opportunity for those who purchase shares at current beaten down prices. So, with that said, let’s take a closer look at the institutional investors still betting big on DocuSign.

5 Investors Betting Big on DOCU Stock

When it comes to institutional investment, Q3 2022 hasn’t been great for DocuSign. The number of funds holding positions in DOCU stock decreased from 761 to 704 in the third quarter, as indicated by 13F filings. The number of new positions fell from 75 to 73 in Q3 as well. Meanwhile, increased positions fell 11% from the previous quarter to 241. That said, the number of reduced positions is also down from the previous quarter, falling 9.5% to 266.

With that in mind, let’s take a look at the top five institutional investors holding DOCU stock.

  1. Vanguard: 18.48 million shares. Vanguard bought 207,808 shares in Q3.
  2. Lazard Asset Management (NYSE:LAZ): 18.08 million shares. Lazard’s position did not change in Q3.
  3. Blackrock (NYSE:BLK):11.83 million shares. Blackrock bought 546,788 shares in Q3.
  4. Polen Capital Management: 8.64 million shares. Polen added 33,901 shares in Q3.
  5. Capital World Investors: 6.36 million shares. Capital World sold 2.08 million shares of DOCU stock in Q3.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.


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