Docusign Inc. (NASDAQ:DOCU) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Docusign Inc. (NASDAQ:DOCU) has received an average rating of "Hold" from various analysts, with twelve ratings indicating a hold and four indicating a buy, reflecting cautious optimism regarding its stock.
• Insider selling has been noted, with CFO Blake Jeffrey Grayson and CEO Allan C. Thygesen selling substantial shares, resulting in considerable decreases in their ownership stakes.
• In Q1 2023, Docusign reported earnings of $0.90 per share, surpassing expectations, and announced a $1 billion stock buyback plan, indicating confidence in the company's value.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) has received a consensus recommendation of "Hold" from the sixteen research firms that are covering the stock, MarketBeat.com reports. Twelve analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $89.7692.

DOCU has been the subject of several analyst reports. Robert W. Baird cut their price target on Docusign from $93.00 to $85.00 and set a "neutral" rating for the company in a report on Friday, June 6th. JMP Securities reissued a "market outperform" rating and issued a $124.00 price target on shares of Docusign in a research note on Tuesday, June 3rd. Citigroup dropped their price objective on shares of Docusign from $115.00 to $110.00 and set a "buy" rating for the company in a research note on Monday, June 9th. Bank of America decreased their target price on shares of Docusign from $88.00 to $85.00 and set a "neutral" rating on the stock in a research report on Friday, June 6th. Finally, Wells Fargo & Company raised shares of Docusign from an "underweight" rating to an "equal weight" rating and upped their price target for the stock from $67.00 to $80.00 in a research report on Friday, June 13th.

Insider Transactions at Docusign

In other Docusign news, insider Robert Chatwani sold 22,875 shares of Docusign stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $74.79, for a total value of $1,710,821.25. Following the transaction, the insider owned 72,126 shares in the company, valued at approximately $5,394,303.54. The trade was a 24.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CFO Blake Jeffrey Grayson sold 15,143 shares of the company's stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $74.80, for a total value of $1,132,696.40. Following the sale, the chief financial officer owned 110,723 shares of the company's stock, valued at approximately $8,282,080.40. This trade represents a 12.03% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 78,552 shares of company stock valued at $5,983,631. Insiders own 1.66% of the company's stock.

Hedge Funds Weigh In On Docusign

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Banque Transatlantique SA bought a new position in Docusign during the first quarter worth about $26,000. Hemington Wealth Management boosted its stake in Docusign by 318.1% in the 1st quarter. Hemington Wealth Management now owns 347 shares of the company's stock valued at $28,000 after buying an additional 264 shares in the last quarter. Golden State Wealth Management LLC grew its position in Docusign by 519.4% in the first quarter. Golden State Wealth Management LLC now owns 384 shares of the company's stock valued at $31,000 after acquiring an additional 322 shares during the period. Summit Securities Group LLC bought a new position in shares of Docusign during the first quarter valued at $34,000. Finally, Wood Tarver Financial Group LLC bought a new position in shares of Docusign in the fourth quarter valued at about $37,000. 77.64% of the stock is owned by institutional investors.

Docusign Stock Up 2.8%

NASDAQ DOCU traded up $2.01 during trading hours on Friday, hitting $74.51. 1,156,801 shares of the company were exchanged, compared to its average volume of 2,568,282. The company has a 50 day moving average of $75.38 and a two-hundred day moving average of $80.01. Docusign has a 52-week low of $54.31 and a 52-week high of $107.86. The firm has a market cap of $15.06 billion, a price-to-earnings ratio of 14.09, a PEG ratio of 27.60 and a beta of 1.01.

Docusign (NASDAQ:DOCU - Get Free Report) last released its quarterly earnings data on Thursday, June 5th. The company reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.81 by $0.09. The firm had revenue of $763.65 million during the quarter, compared to the consensus estimate of $748.79 million. Docusign had a return on equity of 14.27% and a net margin of 36.50%.Docusign's quarterly revenue was up 7.6% on a year-over-year basis. During the same period last year, the business posted $0.82 EPS. Docusign has set its FY 2026 guidance at EPS. Q2 2026 guidance at EPS. On average, equities research analysts predict that Docusign will post 1.17 EPS for the current year.

Docusign declared that its Board of Directors has authorized a share buyback plan on Thursday, June 5th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 6.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

About Docusign

DocuSign, Inc provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.