What happened
Shares of e-signature company DocuSign (DOCU 1.56%) had an incredible fall last week, collapsing 42% in a single, frightful day, after management warned of an impending sales slowdown in the fourth quarter. But there's good news to report, too.
Now that DocuSign stock is so much cheaper than it once was, it's attracting buyers again -- and as of 10 a.m. ET Thursday, the stock is up another 2.1%.
Image source: Getty Images.
So what
One buyer in particular is DocuSign's CEO, Daniel Springer, himself, who was spotted Tuesday snapping up $5 million worth of cheap DocuSign shares -- news that helped keep DocuSign's bounce back going. But as it turns out, Springer isn't done buying DocuSign stock just yet.
As TheFly.com reported yesterday after close of trading, the DocuSign CEO waded back into the market again Wednesday to buy a further 1,100 shares of DocuSign as they approached their low point around $138.50 per share.
Now what
Investors don't seem convinced that Springer, buying DocuSign stock at $138-ish a share Wednesday, is as bullish a sign as it was when he was paying as high as nearly $147 for DocuSign stock on Tuesday. Obviously, it would be more bullish for the stock if we saw the CEO keep on buying into the $150s, the $160s, the $170s, and so on.
Still, the CEO's last-minute shopping spree yesterday does suggest that he sees prices in the $138 range as simply too cheap to resist. That may set a sort of "floor" price on the shares from outside investors' perspective -- a glowing, flashing neon sign that says "if DocuSign ever gets this cheap again, buy more."
Because apparently, that's exactly what the CEO will be doing.
