Docusign Inc. (NASDAQ:DOCU) Stock Now Rated "Hold" by Sell-Side Analysts

Key Points

• Analysts rate DocuSign “Hold” on average: Fifteen of 19 brokerages maintain hold ratings, compared with three buys and one sell. The average 12-month price target is $67.62, below the stock’s reported $81.48 price.
• DocuSign exceeded quarterly expectations: The company reported adjusted earnings of $1.16 per share versus the $1.09 consensus estimate, while revenue reached $875.75 million, up 9.4% year over year and ahead of estimates.
• Insiders have been selling shares: Company insiders sold 165,868 shares worth approximately $11.1 million over the past 90 days, though the transactions were conducted under pre-arranged Rule 10b5-1 trading plans.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) has earned an average recommendation of "Hold" from the nineteen brokerages that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and three have assigned a buy rating to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $67.62.

A number of equities analysts have issued reports on DOCU shares. BTIG Research lifted their price objective on shares of Docusign from $60.00 to $75.00 and gave the stock a "buy" rating in a report on Wednesday, September 2nd. Weiss Ratings upgraded shares of Docusign from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Citigroup increased their target price on shares of Docusign from $54.00 to $72.00 and gave the company a "neutral" rating in a report on Friday, September 4th. Royal Bank Of Canada raised their price target on shares of Docusign from $55.00 to $70.00 and gave the company a "sector perform" rating in a research report on Friday, September 4th. Finally, Robert W. Baird boosted their price target on shares of Docusign from $55.00 to $72.00 and gave the stock a "neutral" rating in a report on Friday, September 4th.

Insiders Place Their Bets

In other Docusign news, Director Mary Wilderotter sold 1,000 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $68.80, for a total value of $68,800.00. Following the completion of the sale, the director owned 2,199 shares in the company, valued at approximately $151,291.20. This trade represents a 31.26% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 14,676 shares of Docusign stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $69.41, for a total transaction of $1,018,661.16. Following the transaction, the insider directly owned 75,928 shares in the company, valued at approximately $5,270,162.48. This represents a 16.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 165,868 shares of company stock worth $11,121,890 in the last ninety days. 0.59% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Docusign

Several institutional investors have recently modified their holdings of the business. Axxcess Wealth Management LLC bought a new stake in Docusign during the third quarter worth $283,000. Nisa Investment Advisors LLC boosted its position in Docusign by 28.2% in the third quarter. Nisa Investment Advisors LLC now owns 3,610 shares of the company's stock worth $242,000 after purchasing an additional 795 shares during the last quarter. Tred Avon Family Wealth LLC boosted its position in Docusign by 22.2% in the third quarter. Tred Avon Family Wealth LLC now owns 8,328 shares of the company's stock worth $559,000 after purchasing an additional 1,514 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd boosted its position in Docusign by 12.3% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 11,695 shares of the company's stock worth $785,000 after purchasing an additional 1,284 shares during the last quarter. Finally, Investment Research Partners LLC bought a new position in Docusign in the 3rd quarter valued at $219,000. 77.64% of the stock is owned by institutional investors.

Docusign Stock Up 1.5%

NASDAQ DOCU opened at $81.48 on Thursday. Docusign has a 52 week low of $40.16 and a 52 week high of $81.62. The business has a 50 day moving average price of $67.89 and a 200-day moving average price of $55.43. The company has a market cap of $15.23 billion, a price-to-earnings ratio of 49.68, a P/E/G ratio of 2.97 and a beta of 0.86.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $1.16 earnings per share for the quarter, topping analysts' consensus estimates of $1.09 by $0.07. Docusign had a net margin of 9.82% and a return on equity of 18.29%. The company had revenue of $875.75 million for the quarter, compared to analyst estimates of $867.22 million. During the same quarter in the prior year, the business posted $0.30 EPS. The firm's revenue was up 9.4% compared to the same quarter last year. On average, equities research analysts anticipate that Docusign will post 2.14 earnings per share for the current year.

About Docusign

DocuSign, Inc is a software company that provides digital agreement and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping customers replace paper-based contracting processes with digital workflows.

The company's offerings include eSignature, contract lifecycle management, identity verification, notarization and agreement analytics tools. These products are designed to support agreement creation, negotiation, execution and post-signature management across functions such as sales, human resources, procurement, legal and finance.

Founded in 2003, DocuSign serves businesses, government organizations and individual users in markets around the world.

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