What happened
Second verse, same as the first.
Shareholders of DocuSign (DOCU 1.83%) will recall how last month, multiple purchases of stock by their company's CEO had a beneficial effect on the stock's price, helping the e-signature company to rebound from an early December sell-off to close the year north of $152 a share.
DocuSign ended up not being able to hold on to those gains, falling victim to the same post-New Year's sell-off that torpedoed the rest of the Nasdaq. But with DocuSign stock now back in bargain territory, the CEO is buying again!
And DocuSign surged to close 4.3% higher today on that news.
Image source: Getty Images.
So what
It seems CEO Daniel Springer is back in the market for some DocuSign shares. For the first time since early December, reports TheFly.com, Springer waded back into the market and bought 18,700 shares of his company's stock on Monday, laying out $2.4 million.
Now what
And yet, while it's certainly good to see DocuSign's CEO putting (even more) skin in the game, and demonstrating confidence in his company's future, I'm not sure that these latest purchases are quite as bullish as the purchases Springer made back in December.
The back-to-back reports of his buying in December had the CEO paying first $147, and later about $138 per share for DocuSign. Yesterday's purchases, in contrast, seem to have been made close to the low price of the day, and cost the CEO less than $129 a share on average.
That being said, with DocuSign stock costing closer to $142 per share today, the stock has returned to the prices it fetched when the CEO was seen buying up stock last month. If he continues buying at these levels, that would be a bullish sign, and maybe even a cue for outside investors to do some buying of their own.
