Docusign Inc. (NASDAQ:DOCU) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Docusign has a consensus analyst rating of “Hold” from 19 brokerages, with 2 sells, 14 holds, and 3 buys. The average 12-month price target is about $60.27.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.09 versus the $0.99 estimate and revenue of $830.24 million, up 8.7% year over year.
• Docusign’s board authorized a $2 billion share buyback, while insiders have recently sold shares, including CFO Blake Jeffrey Grayson and insider James P. Shaughnessy in July transactions.

Shares of Docusign Inc. (NASDAQ:DOCU - Get Free Report) have earned a consensus rating of "Hold" from the nineteen brokerages that are currently covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and three have issued a buy rating on the company. The average 1 year price target among brokers that have covered the stock in the last year is $60.2667.

A number of brokerages have recently weighed in on DOCU. Royal Bank Of Canada cut 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. Piper Sandler dropped their price target on Docusign from $75.00 to $52.00 and set a "neutral" rating on the stock in a report on Wednesday, March 18th. Weiss Ratings cut Docusign from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, June 26th. BTIG Research reduced their price objective on Docusign from $70.00 to $60.00 and set a "buy" rating for the company in a research note on Friday, June 5th. Finally, Bank of America initiated coverage on Docusign in a research report on Tuesday, March 31st. They set an "underperform" rating and a $52.00 target price for the company.

Docusign Trading Up 1.4%

NASDAQ DOCU opened at $49.87 on Tuesday. The company has a fifty day simple moving average of $47.13 and a 200 day simple moving average of $49.89. Docusign has a 12-month low of $40.16 and a 12-month high of $86.65. The company has a market cap of $9.52 billion, a P/E ratio of 32.38, a PEG ratio of 1.45 and a beta of 0.90.

Docusign (NASDAQ:DOCU - Get Free Report) last issued its quarterly earnings data on Thursday, June 4th. The company reported $1.09 EPS for the quarter, topping analysts' consensus estimates 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 analyst estimates of $824.71 million. During the same period in the previous year, the company posted $0.90 EPS. The company's revenue for the quarter was up 8.7% on a year-over-year basis. Sell-side analysts predict that Docusign will post 2.03 EPS for the current year.

Docusign declared that its Board of Directors has authorized a share buyback program on Tuesday, March 17th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes 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 board believes its shares are undervalued.

Insider Activity at Docusign

In related news, CFO Blake Jeffrey Grayson sold 15,000 shares of the firm's stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $45.55, for a total transaction of $683,250.00. Following the completion of the sale, the chief financial officer owned 141,429 shares in the company, valued at approximately $6,442,090.95. This trade represents a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James P. Shaughnessy sold 12,000 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total transaction of $546,480.00. Following the sale, the insider owned 52,815 shares of the company's stock, valued at $2,405,195.10. This trade represents a 18.51% decrease in their position. 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. Insiders have sold 76,695 shares of company stock valued at $3,476,002 in the last 90 days. 0.59% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Docusign

Hedge funds have recently modified their holdings of the stock. State Street Corp grew its holdings in Docusign by 0.9% during the fourth quarter. State Street Corp now owns 8,193,805 shares of the company's stock valued at $560,456,000 after purchasing an additional 77,008 shares during the period. Capital World Investors raised its stake in shares of Docusign by 38.1% in the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company's stock valued at $397,801,000 after buying an additional 1,603,900 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of Docusign by 76.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company's stock valued at $250,568,000 after buying an additional 2,283,996 shares during the period. Geode Capital Management LLC lifted its position in shares of Docusign by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company's stock valued at $278,665,000 after buying an additional 18,873 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of Docusign by 8.1% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,343,613 shares of the company's stock valued at $228,703,000 after buying an additional 251,639 shares during the last quarter. Institutional investors own 77.64% of the company's stock.

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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