Why Investors Signed Out of DocuSign Today

DocuSign (NASDAQ: DOCU) shareholders had a Wednesday they'd rather forget. On the back of an analyst price target cut, the online verification specialist's share price dropped by nearly 2%. That was a deeper fall than that of the S&P 500 index, which sagged by nearly 0.5%.

The bad guy in the story, if you will, was Piper Sandler (NYSE: PIPR) analyst Rob Owens. Wednesday morning, he reduced his DocuSign price target to $65 per share, notably down from his previous level of $75. Owens is, however, maintaining his recommendation on the stock, which is neutral.

The reasons for his move weren't immediately clear, but some caution is certainly warranted with DocuSign stock. It moved sharply higher at the beginning of July, following a report in TheDeal.com that the company had become attractive to potential strategic buyers or activist investors.

Source Fool.com