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DocuSign stock price target raised to $70 from $53 at J.P. Morgan
DocuSign Inc. shares popped more than 10% in the extended session Thursday after the company beat top- and bottom-line expectations in its first earnings since the company's April initial public offering. DocuSign stock closed down 2.4% to $56 during regular trading. The company reported first-quarter net losses of $270.7 million, or $7.46 a share, compared with losses of $19.4 million, or 66 cents a share, in the year-ago period. Companies typically report large losses in their first earnings after an IPO due to stock-based compensation. Adjusted earnings were 1 cent a share. Revenue rose to $155.8 million from $113.5 million in the year-ago period. Analysts surveyed by FactSet had estimated adjusted losses of 7 cents a share on revenue of $145.9 million. For the second quarter, analysts model adjusted losses of 3 cents a share on revenue of $151.5 million. The company said it expects second-quarter revenue of $157 million to $160 million. DocuSign stock has gained 38% since its April IPO, with the S&P 500 index rising 3.8%.
DocuSign initiated at overweight with $53 price target at J.P. Morgan
Shares of electronic-signature company DocuSign Inc. are up 31% in their first day of trading Friday. The first trade was executed at $38.00 at 11:27 p.m. ET. Shares priced Thursday night at $29, a dollar above the high end of the company's expected range. Docusign has gone public on the same day as cloud-software company Smartsheet Inc. , whose shares are up 24% in Friday trading. Docusign's IPO comes as the Renaissance IPO ETF is up 1.2% this year and the S&P 500 is down 0.2%.
Shares of Smartsheet Inc. are up 22% in their first day of trading on Friday, after the stock priced at $15 overnight. The first trade was executed for $18.40 and shares continue to trade near those levels minutes later. Cloud-software company Smartsheet is going public on the same day as electronic-signature company DocuSign Inc. . The IPOs come as the Renaissance IPO ETF is up 2% so far in 2018 and as the S&P 500 has dropped 0.4%.
DocuSign Inc. announced Thursday evening that it had priced its initial public offering at $29, higher than the price range it was seeking. DocuSign said it would sell at least 21.7 million shares at that price, with about 16 million shares coming from the company and the rest from selling shareholders. In total, the IPO would raise at least $629.3 million at a valuation of $4.4 billion based on shares outstanding. The company had already raised its price range, from $24-to-$26 to $26-to-$28, in the run-up to the IPO. The company, which enables companies to provide forms to customers and obtain their legally binding electronic signatures on the documents, is expected to begin trading Friday morning on the Nasdaq exchange under the ticker symbol DOCU. Underwriters, led by Morgan Stanley and JP Morgan, have access to an additional 3.26 million shares.
DocuSign Inc. raised its expected IPO price range to between $26 and $28 a share in a Wednesday filing, up from between $24 and $26 previously. The company, which allows companies to send out legally binding documents and obtain electronic signatures on them, is expected to price its IPO late Thursday and see shares begin trading on Friday. Based on 136 million shares outstanding at the end of January, the company would be valued at $3.5 billion if shares priced at the low end of the new range and $3.8 billion if shares priced at the high end. DocuSign is offering 16.1 million shares and selling stockholders are offering another 5.6 million.
The recent hysteria for new cloud-software stocks seemed to ease a bit Friday with Pivotal Software Inc.’s initial public offering, but there are obvious questions about whether that is an issue with Pivotal or if enthusiasm is waning overall.
DocuSign Inc. set terms for its initial public offering, in which it expects to raise up to $417.5 million. The provider of electronic signature services said a total of 21.7 million shares are being sold in the IPO, of which the company is offering 16.1 million shares and selling shareholders are offering 5.6 shares. The company will not receive proceeds from shares offered by shareholders. The IPO is expected to price between $24 to $26 a share. Based on 136.05 million shares outstanding as of Jan. 31, the company would be valued at $3.54 billion at $26 a share. DocuSign has also granted the underwriters of the offering options to buy up to an additional 3.26 million shares to cover over-allotments. If all the options are exercised, the company could raise up to $502.2 million. The company is going public at a time that the Renaissance IPO ETF has gained 1.1% year to date and the S&P 500 has edged up 0.2%.
Electronic-signature technology company DocuSign Inc. closed up 30% in its market debut Friday.
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Electronic-signature technology company DocuSign Inc. closed up 30% in its market debut Friday.
Here’s a look at how DocuSign operates, its various products and solutions, and how it makes money.
At this price, the eSignature pioneer would raise $629 million from its IPO.
DocuSign prices IPO above range at $29/share
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DocuSign, Inc. provides cloud-based electronic signature solutions. Its cloud based electronic signature platform helps companies and individuals securely collect information, automate data workflows and sign anything. The firm automates manual, paper-based processes allowing users to manage all aspects of documented business transactions include identity management, authentication, digital signature, forms and data collection, collaboration, workflow automation and storage. DocuSign was founded by Thomas H. Gonser and Court Lorenzini in 2003 and is headquartered in San Francisco, CA. (See Full Profile)