Docusign (NASDAQ:DOCU) CEO Sells $1,208,025.00 in Stock

Key Points

• Docusign CEO Allan Thygesen sold 26,250 shares on July 1 at an average price of $46.02, totaling about $1.21 million. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and his ownership fell by 14.17%.
• DocuSign’s latest quarter beat expectations, reporting $1.09 EPS versus the $0.99 consensus and revenue of $830.24 million, up 8.7% year over year. The company also posted a 9.59% net margin and 17.48% return on equity.
• Analysts and institutions remain active on DOCU, with recent estimate revisions mostly pointing to stronger longer-term earnings, while Wall Street’s overall rating remains Hold with a consensus target price of $60.27. Meanwhile, Docusign has a $2 billion share repurchase authorization, signaling management’s view that the stock may be undervalued.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) CEO Allan Thygesen sold 26,250 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $46.02, for a total transaction of $1,208,025.00. Following the transaction, the chief executive officer directly owned 159,038 shares of the company's stock, valued at $7,318,928.76. The trade was a 14.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Docusign Trading Up 3.6%

NASDAQ DOCU traded up $1.60 on Wednesday, reaching $46.02. The company's stock had a trading volume of 3,492,477 shares, compared to its average volume of 4,953,224. Docusign Inc. has a 52 week low of $40.16 and a 52 week high of $86.65. The firm has a market cap of $8.79 billion, a PE ratio of 29.88, a price-to-earnings-growth ratio of 1.31 and a beta of 0.90. The business has a 50-day moving average price of $46.93 and a 200 day moving average price of $51.11.

Docusign (NASDAQ:DOCU - Get Free Report) last announced its quarterly earnings results 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 net margin of 9.59% and a return on equity of 17.48%. The firm had revenue of $830.24 million during the quarter, compared to analysts' expectations of $824.71 million. During the same quarter last year, the company earned $0.90 earnings per share. The company's revenue for the quarter was up 8.7% compared to the same quarter last year. Analysts anticipate that Docusign Inc. will post 2.03 earnings per share for the current fiscal year.

Docusign announced that its Board of Directors has authorized a share repurchase plan on Tuesday, March 17th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 21% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Docusign News Roundup

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS estimate for Docusign to $1.69 from $1.53, suggesting stronger expected profitability over the next couple of years.
• Positive Sentiment: The firm also increased its FY2028 EPS estimate to $1.76 from $1.89, and lifted Q1 2028 EPS to $0.47 from $0.45, reinforcing a more favorable near-to-midterm earnings view.
• Positive Sentiment: Analysts boosted Q4 2028 EPS to $0.62 from $0.59 and Q1 2029 EPS to $0.73 from $0.51, indicating continued expectation for earnings growth further out. Docusign estimate revisions
• Neutral Sentiment: Not all revisions were positive: Zacks trimmed Q2 2028 EPS to $0.28 from $0.43, Q3 2028 EPS to $0.38 from $0.41, and FY2029 EPS to $1.35 from $2.10, showing a mixed long-range outlook.
• Neutral Sentiment: The current-year consensus estimate remains around $1.97 per share, so the latest changes mainly affect longer-dated forecasts rather than near-term results.

Institutional Trading of Docusign

Hedge funds have recently modified their holdings of the stock. Norges Bank bought a new position in Docusign in the 4th quarter valued at $186,795,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Docusign by 76.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company's stock valued at $250,568,000 after acquiring an additional 2,283,996 shares during the period. Capital World Investors increased its position in Docusign by 38.1% in the fourth 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 during the period. SG Americas Securities LLC increased its position in Docusign by 452.3% in the first quarter. SG Americas Securities LLC now owns 1,314,632 shares of the company's stock worth $62,327,000 after purchasing an additional 1,076,622 shares during the period. Finally, Woodline Partners LP raised its holdings in Docusign by 24,412.7% during the 3rd quarter. Woodline Partners LP now owns 958,938 shares of the company's stock worth $69,130,000 after purchasing an additional 955,026 shares during the last quarter. 77.64% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on DOCU shares. Citizens Jmp lowered their target price on shares of Docusign from $124.00 to $86.00 and set a "market outperform" rating on the stock in a report on Wednesday, March 18th. JPMorgan Chase & Co. cut their price target on shares of Docusign from $78.00 to $65.00 and set a "neutral" rating for the company in a report on Wednesday, March 18th. Wall Street Zen raised shares of Docusign from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 13th. Citigroup raised their price objective on shares of Docusign from $50.00 to $54.00 and gave the stock a "neutral" rating in a report on Friday, June 5th. Finally, Wedbush cut their target price on shares of Docusign from $60.00 to $58.00 and set a "neutral" rating for the company in a research note on Friday, June 5th. Three investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $60.27.

About Docusign

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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