BTIG Research Cuts Docusign (NASDAQ:DOCU) Price Target to $60.00

Key Points

• BTIG Research cut Docusign’s price target from $70 to $60, while keeping a buy rating on the stock. The new target implies about 17.8% upside from the current share price.
• Other firms have also turned more cautious on DOCU, with several recent price-target reductions and the stock now carrying a consensus Hold rating and an average target of $60.40.
• Despite the mixed analyst sentiment, Docusign beat quarterly estimates, posting EPS of $1.09 versus $1.00 expected and revenue of $830.2 million, while revenue rose 8.7% year over year.

Docusign (NASDAQ:DOCU - Get Free Report) had its target price reduced by investment analysts at BTIG Research from $70.00 to $60.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a "buy" rating on the stock. BTIG Research's price objective suggests a potential upside of 17.79% from the stock's current price.

Several other brokerages also recently issued reports on DOCU. HSBC set a $53.00 price objective on Docusign in a research report on Friday, February 13th. UBS Group reduced their price objective on Docusign from $75.00 to $54.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 18th. Robert W. Baird reduced their price objective on Docusign from $75.00 to $55.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 18th. Royal Bank Of Canada reduced their price objective on Docusign from $70.00 to $55.00 and set a "sector perform" rating on the stock in a research report on Wednesday, March 18th. Finally, Needham & Company LLC restated a "hold" rating on shares of Docusign in a research report on Friday. Three research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $60.40.

Docusign Stock Performance

Docusign stock opened at $50.94 on Friday. The firm has a market capitalization of $9.90 billion, a price-to-earnings ratio of 34.42, a price-to-earnings-growth ratio of 2.00 and a beta of 0.92. Docusign has a fifty-two week low of $40.16 and a fifty-two week high of $94.67. The stock's fifty day moving average is $47.74 and its two-hundred day moving average is $54.21.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its earnings results on Thursday, June 4th. The company reported $1.09 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.09. The company had revenue of $830.24 million for the quarter, compared to analyst estimates of $824.71 million. Docusign had a return on equity of 16.86% and a net margin of 9.60%.Docusign's revenue was up 8.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.90 earnings per share. As a group, sell-side analysts forecast that Docusign will post 1.76 EPS for the current fiscal year.

Docusign declared that its board has authorized a stock buyback program on Tuesday, March 17th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 21% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Mary Agnes Wilderotter sold 3,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $48.15, for a total value of $144,450.00. Following the transaction, the director directly owned 59,803 shares in the company, valued at $2,879,514.45. This trade represents a 4.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CRO Paula Hansen sold 6,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $46.84, for a total value of $281,040.00. Following the completion of the transaction, the executive owned 79,233 shares in the company, valued at approximately $3,711,273.72. This trade represents a 7.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 65,126 shares of company stock worth $3,107,875. Corporate insiders own 0.59% of the company's stock.

Institutional Investors Weigh In On Docusign

Large investors have recently modified their holdings of the stock. Central Pacific Bank Trust Division acquired a new stake in shares of Docusign in the fourth quarter valued at about $25,000. Modus Advisors LLC acquired a new stake in shares of Docusign in the fourth quarter valued at about $27,000. Torren Management LLC acquired a new stake in shares of Docusign in the fourth quarter valued at about $28,000. True Wealth Design LLC grew its stake in shares of Docusign by 105.2% in the fourth quarter. True Wealth Design LLC now owns 433 shares of the company's stock valued at $30,000 after buying an additional 222 shares in the last quarter. Finally, Aventura Private Wealth LLC acquired a new stake in shares of Docusign in the fourth quarter valued at about $30,000. Institutional investors and hedge funds own 77.64% of the company's stock.

Trending Headlines about Docusign

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign beat Q1 estimates, posting adjusted EPS of $1.09 versus $1.00 expected and revenue of about $830.2 million versus $824.7 million forecast, with sales up 8.7%-9% year over year. DocuSign (DOCU) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised its revenue outlook for fiscal 2027 and said demand is improving for its AI-powered Intelligent Agreement Management platform, which supports the growth story. DocuSign Nudges Revenue Outlook Higher After First-Quarter Profit Rises
• Positive Sentiment: Investors are also encouraged by new AI-related product integrations, including ChatGPT and Codex, which could broaden adoption of DocuSign’s platform. DocuSign (DOCU) Valuation Check After Q1 Beat And New AI Agreement Management Launch
• Neutral Sentiment: DocuSign also highlighted record stock buybacks and continued product launches, but these items appear secondary to the company’s main earnings and guidance narrative. Docusign Inc (DOCU) Q1 2027 Earnings Call Highlights
• Negative Sentiment: Despite the beat, the stock fell in premarket/after-hours trading because guidance did not offer much upside beyond Wall Street expectations, leaving some investors disappointed. DocuSign Tops First-Quarter Forecasts, but Soft Outlook Weighs on Shares (DOCU)

Docusign Company Profile

DocuSign, Inc NASDAQ: DOCU is a leading provider of electronic signature and digital transaction management solutions. The company's flagship offering, DocuSign eSignature, enables organizations to send, sign and manage legally binding electronic agreements securely in the cloud. Beyond eSignature, DocuSign's Agreement Cloud combines contract lifecycle management, document generation, and workflow automation to streamline agreement processes from initiation through execution and storage.

DocuSign's platform serves a diverse customer base spanning industries such as finance, real estate, healthcare, technology, and government.

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