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

Key Points

• Analysts broadly rate DocuSign “Hold”: Of 18 covering firms, 14 issued hold ratings, three rated it a buy and one a sell. The average 12-month price target is $67.33.
• Recent results exceeded expectations: DocuSign reported quarterly EPS of $1.16 versus the $1.09 consensus and revenue of $875.75 million, up 9.4% year over year.
• Insiders have been selling shares while institutions hold a major stake: Insiders sold 182,568 shares worth about $10.9 million over the past 90 days, while institutional investors own 77.64% of the company.

Shares of Docusign Inc. (NASDAQ:DOCU - Get Free Report) have been assigned an average rating of "Hold" from the eighteen ratings firms that are currently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating and three have given a buy rating to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $67.33.

A number of analysts have issued reports on DOCU shares. Piper Sandler raised their price target on Docusign from $52.00 to $75.00 and gave the stock a "neutral" rating in a research note on Friday, September 4th. Wall Street Zen downgraded shares of Docusign from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 2nd. UBS Group increased their price objective on shares of Docusign from $54.00 to $70.00 and gave the stock a "neutral" rating in a report on Friday, September 4th. Jefferies Financial Group raised their target price on shares of Docusign from $45.00 to $50.00 and gave the stock a "hold" rating in a research report on Friday, June 5th. Finally, Royal Bank Of Canada boosted their target price on shares of Docusign from $55.00 to $70.00 and gave the company a "sector perform" rating in a report on Friday, September 4th.

Insider Activity at Docusign

In other news, insider James P. Shaughnessy sold 12,000 shares of the business's stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $45.54, for a total transaction of $546,480.00. Following the completion of the sale, the insider directly owned 52,815 shares of the company's stock, valued at $2,405,195.10. The trade was a 18.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Blake Grayson sold 30,000 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $70.00, for a total value of $2,100,000.00. Following the completion of the transaction, the chief financial officer directly owned 96,429 shares in the company, valued at $6,750,030. This trade represents a 23.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 182,568 shares of company stock valued at $10,892,550 over the last 90 days. 0.59% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Docusign

Institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Docusign in the 2nd quarter worth about $927,059,000. Norges Bank purchased a new stake in shares of Docusign during the 4th quarter worth about $186,795,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of Docusign by 76.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company's stock worth $250,568,000 after purchasing an additional 2,283,996 shares during the period. Capital World Investors increased its position in Docusign by 38.1% during the 4th quarter. Capital World Investors now owns 5,815,804 shares of the company's stock worth $397,801,000 after purchasing an additional 1,603,900 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Docusign during the 2nd quarter worth approximately $56,219,000. Hedge funds and other institutional investors own 77.64% of the company's stock.

Docusign Stock Down 2.2%

Shares of Docusign stock opened at $67.50 on Friday. Docusign has a fifty-two week low of $40.16 and a fifty-two week high of $82.44. The business's fifty day moving average is $61.69 and its two-hundred day moving average is $52.27. The firm has a market cap of $12.62 billion, a PE ratio of 41.16, a P/E/G ratio of 2.54 and a beta of 0.90.

Docusign (NASDAQ:DOCU - Get Free Report) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $1.16 EPS for the quarter, beating analysts' consensus estimates of $1.09 by $0.07. The business had revenue of $875.75 million during the quarter, compared to the consensus estimate of $867.22 million. Docusign had a return on equity of 18.29% and a net margin of 9.82%.The business's revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.30 earnings per share. Equities research analysts anticipate that Docusign will post 2.1 EPS for the current year.

About Docusign

DocuSign, Inc is a provider of digital agreement management and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping businesses replace paper-based contracting processes with digital workflows.

The company's products and services include DocuSign eSignature, which supports electronic signing and authentication, as well as tools for contract lifecycle management, agreement preparation, identity verification, notarial services and workflow automation.

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