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5 Investors Are Betting Big on DocuSign (DOCU) Stock


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Some of the more recent covers of DocuSign (NASDAQ:DOCUMENT) classifies it as a technology stock for sale. That’s no surprise, given the company’s struggles for 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% in the past month as market conditions shift in favor of DocuSign.

Today, DOCU shares jumped 12% after reporting better-than-expected third-quarter earnings. For starters, the company’s revenue of $645.5 million represents an 18% increase over the prior year, beating both its own guidance range and the consensus estimate. Billings also increased 17% during the period, while non-GAAP gross margin and operating margin exceeded target ranges.

That suggests this former pandemic-era winner may be finding ways to adapt to a volatile market. If true, DocuSign can definitely recover in 2023. InvestorPlace Contributor Chris Lau recently noted that the company could also see significant catalysts in the coming months, including possible increases in the length of its customer contracts. Lau also suggests that a large company might be interested in acquiring DocuSign to “strengthen its e-signature offerings.”

Either of these scenarios would help DOCU stock rebound over the coming year, creating a valuable opportunity for those buying stocks at the currently battered prices. That said, let’s take a closer look at the institutional investors who are still betting big on DocuSign.

5 investors are betting big on DOCU shares

When it comes to institutional investments, the third quarter of 2022 hasn’t been great for DocuSign. The number of funds holding positions in DOCU shares rose from 761 to 704 in the third quarter, as indicated by 13F filings. The number of new positions also fell from 75 to 73 in the third quarter. 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, dropping 9.5% to 266.

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

  1. Avant-garde: 18.48 million shares. Vanguard bought 207,808 shares in the third quarter.
  2. Lazard Asset Management (NYSE:LAZ): 18.08 million shares. Lazard’s position did not change in the third quarter.
  3. black rock (NYSE:noir):11.83 million shares. Blackrock bought 546,788 shares in the third quarter.
  4. Polen Capital Management: 8.64 million shares. Polen added 33,901 shares in the third quarter.
  5. Capital World Investors: 6.36 million shares. Capital World sold 2.08 million DOCU shares in the third quarter.

At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for over three years. His areas of expertise are in electric vehicle (EV) inventory, green energy and NFT. O’Brient enjoys helping everyone understand the intricacies of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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