Docusign Inc. (NASDAQ:DOCU) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Brokerages have a consensus recommendation of “Hold” from 19 analysts (2 sell, 14 hold, 3 buy) with an average 12‑month price target of $61.40, and several firms cut targets on March 18.
• Insiders sold stock under pre‑arranged Rule 10b5‑1 plans on April 1 — CEO Allan C. Thygesen sold 26,250 shares (~$1.25M) and James P. Shaughnessy sold 12,000 shares (~$562k) — with insiders offloading 64,673 shares (~$3.08M) in the past three months.
• DocuSign beat quarterly estimates (EPS $1.01 vs. $0.95; revenue $836.9M vs. $828.2M) and its board approved a $2.0 billion share buyback authorization, equal to about 21% of outstanding shares.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) has been assigned a consensus recommendation of "Hold" from the nineteen brokerages that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and three have given a buy rating to the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $61.40.

Several equities analysts have recently weighed in on DOCU shares. Robert W. Baird reduced their price objective on shares of Docusign from $75.00 to $55.00 and set a "neutral" rating for the company in a research report on Wednesday, March 18th. Wells Fargo & Company reduced their target price on shares of Docusign from $75.00 to $60.00 and set an "equal weight" rating for the company in a report on Wednesday, March 18th. Citizens Jmp decreased their price target on shares of Docusign from $124.00 to $86.00 and set a "market outperform" rating on the stock in a research report on Wednesday, March 18th. Morgan Stanley dropped their price target on Docusign from $90.00 to $69.00 and set an "equal weight" rating on the stock in a report on Wednesday, March 18th. Finally, Royal Bank Of Canada dropped their price target on Docusign from $70.00 to $55.00 and set a "sector perform" rating on the stock in a report on Wednesday, March 18th.

Insider Buying and Selling

In related news, insider James P. Shaughnessy sold 12,000 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $46.83, for a total value of $561,960.00. Following the completion of the transaction, the insider 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 transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Allan C. Thygesen sold 26,250 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $47.78, for a total transaction of $1,254,225.00. Following the completion of the transaction, the chief executive officer directly owned 152,237 shares of the company's stock, valued at $7,273,883.86. This represents a 14.71% 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 64,673 shares of company stock valued at $3,077,699 in the last three months. Insiders own 1.01% of the company's stock.

Hedge Funds Weigh In On Docusign

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DOCU. Central Pacific Bank Trust Division acquired a new position in Docusign in the 4th quarter worth approximately $25,000. Modus Advisors LLC acquired a new position in Docusign in the 4th quarter worth approximately $27,000. Torren Management LLC acquired a new position in Docusign in the 4th quarter worth approximately $28,000. Aventura Private Wealth LLC acquired a new position in Docusign in the 4th quarter worth approximately $30,000. Finally, True Wealth Design LLC boosted its stake in Docusign by 105.2% in the 4th quarter. True Wealth Design LLC now owns 433 shares of the company's stock worth $30,000 after purchasing an additional 222 shares during the period. Institutional investors and hedge funds own 77.64% of the company's stock.

Docusign Stock Performance

Shares of Docusign stock opened at $46.92 on Thursday. The firm has a market cap of $9.12 billion, a PE ratio of 31.70, a price-to-earnings-growth ratio of 1.74 and a beta of 0.99. The firm's 50-day simple moving average is $46.50 and its 200-day simple moving average is $57.83. Docusign has a 1 year low of $40.16 and a 1 year high of $94.67.

Docusign (NASDAQ:DOCU - Get Free Report) last issued its earnings results on Tuesday, March 17th. The company reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $0.95 by $0.06. Docusign had a return on equity of 16.86% and a net margin of 9.60%.The company had revenue of $836.86 million during the quarter, compared to the consensus estimate of $828.23 million. During the same period in the previous year, the firm posted $0.86 earnings per share. Docusign's quarterly revenue was up 7.8% compared to the same quarter last year. On average, equities analysts predict that Docusign will post 1.76 earnings per share for the current year.

Docusign declared that its board has initiated a stock buyback plan on Tuesday, March 17th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 21% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's board believes its shares are undervalued.

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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