Docusign Inc. (NASDAQ:DOCU) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts are cautious on DocuSign. Nineteen brokerages covering DOCU give it an average rating of “Hold,” with 15 holds, 3 buys, and 1 sell. The consensus 1-year price target is about $60.27.
• DocuSign beat earnings expectations in its latest quarter. The company reported EPS of $1.09, topping estimates by $0.10, while revenue rose 8.7% year over year to $830.24 million. Analysts currently expect full-year EPS of 1.97.
• The company continues to support its stock with buybacks. DocuSign authorized a $2 billion share repurchase program that could cover up to 21% of its shares. The article also notes recent insider selling, though institutional investors still own the majority of shares.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) has received an average recommendation of "Hold" from the nineteen brokerages that are covering the company, MarketBeat Ratings reports. One investment 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 1 year price objective among brokerages that have covered the stock in the last year is $60.2667.

A number of research firms recently issued reports on DOCU. Citigroup upped their target price on Docusign from $50.00 to $54.00 and gave the company a "neutral" rating in a research note on Friday, June 5th. Royal Bank Of Canada reduced their target price on Docusign from $70.00 to $55.00 and set a "sector perform" rating on the stock in a research note on Wednesday, March 18th. Citizens Jmp reduced their target price on Docusign from $124.00 to $86.00 and set a "market outperform" rating on the stock in a research note on Wednesday, March 18th. BTIG Research reduced their target price on Docusign from $70.00 to $60.00 and set a "buy" rating on the stock in a research note on Friday, June 5th. Finally, Piper Sandler reduced their target price on Docusign from $75.00 to $52.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 18th.

Docusign Stock Up 2.1%

DOCU opened at $43.47 on Friday. The business has a 50 day moving average price of $47.21 and a two-hundred day moving average price of $52.68. The company has a market cap of $8.30 billion, a PE ratio of 28.23, a P/E/G ratio of 1.29 and a beta of 0.92. Docusign has a 52 week low of $40.16 and a 52 week high of $86.65.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its quarterly earnings data on Thursday, June 4th. The company reported $1.09 EPS for the quarter, beating the consensus estimate of $0.99 by $0.10. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The firm had revenue of $830.24 million during the quarter, compared to the consensus estimate of $824.71 million. During the same period in the prior year, the business earned $0.90 EPS. The firm's revenue was up 8.7% compared to the same quarter last year. As a group, sell-side analysts expect that Docusign will post 1.97 EPS for the current fiscal year.

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

Insider Transactions at Docusign

In related news, insider James P. Shaughnessy sold 12,000 shares of the stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $46.83, for a total value of $561,960.00. Following the transaction, the insider directly owned 53,631 shares of the company's stock, valued at approximately $2,511,539.73. This trade represents a 18.28% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mary Agnes Wilderotter sold 3,000 shares of the firm's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $48.15, for a total value of $144,450.00. Following the completion of 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 ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 48,793 shares of company stock valued at $2,322,737. Corporate insiders own 0.59% of the company's stock.

Hedge Funds Weigh In On Docusign

Hedge funds have recently bought and sold shares of the company. Pacer Advisors Inc. boosted its stake in Docusign by 43.2% in the first quarter. Pacer Advisors Inc. now owns 1,092,037 shares of the company's stock valued at $51,773,000 after acquiring an additional 329,403 shares during the period. Parallel Advisors LLC lifted its position in Docusign by 113.2% in the first quarter. Parallel Advisors LLC now owns 4,568 shares of the company's stock worth $217,000 after purchasing an additional 2,425 shares during the period. NewEdge Advisors LLC lifted its position in Docusign by 3.1% in the first quarter. NewEdge Advisors LLC now owns 11,024 shares of the company's stock worth $523,000 after purchasing an additional 328 shares during the period. Caerus Investment Advisors LLC acquired a new stake in Docusign in the first quarter worth approximately $436,000. Finally, Glenmede Trust Co. NA increased its holdings in shares of Docusign by 11.0% in the first quarter. Glenmede Trust Co. NA now owns 512,593 shares of the company's stock valued at $24,302,000 after buying an additional 50,855 shares in the last quarter. 77.64% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.