DocuSign (NASDAQ:DOCU) is one of the top-trending tickers this morning after The Wall Street Journal reported late Friday that the firm was exploring a deal to sell itself. After rising 12.5% on Friday, DOCU stock saw a slight decline of just over 3% in early trading this morning, possibly due to traders cashing in on Friday’s price spike.
DOCU allows the users of its service to easily sign documents electronically.
DocuSign Has Recruited Advisers
The company has tapped advisers to evaluate a potential M&A deal, The Wall Street Journal reported on Friday.
The newspaper reported that DocuSign’s talks “are in the early stages,” and the negotiations may not result in a transaction. The WSJ also said that tech companies and private equity firms could be interested in buying DOCU, whose market capitalization is currently $12.8 billion.
If completed, it would be “one of the largest leveraged buyouts in recent memory.”
More About DocuSign and DOCU Stock
DOCU stock tumbled about 66% last year amid the Federal Reserve’s interest rate hikes and a sharp deceleration of the firm’s growth. The company must also cope with competition from tech giant Adobe (NASDAQ:ADBE) and Dropbox (NASDAQ:DBX).
Even after DOCU’s shares rallied on Friday, they are still about 80% below their 2021 high of $310.
Also notable is that the company’s then-CFO left the firm in March.
Last quarter, DOCU’s top line rose 9% versus the same period a year earlier, but its billings only climbed 5% year-over-year.
In the last three months heading into today, DOCU had jumped 44%, but it’s only up 14% so far in 2023.
On the date of publication, Larry Ramer 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.
