Docusign (NASDAQ:DOCU) CFO Sells 15,000 Shares of Stock

Key Points

• Docusign CFO Blake Jeffrey Grayson sold 15,000 shares on July 1 at an average price of $45.55, totaling about $683,250. The sale reduced his ownership by 9.59% and was made under a pre-arranged Rule 10b5-1 trading plan.
• The stock rose 3.6% to $46.02 on Wednesday, with Docusign now sitting near the lower end of its 52-week range. The company has a market cap of $8.79 billion and a consensus analyst rating of Hold with a target price of $60.27.
• Docusign recently beat quarterly earnings expectations, reporting $1.09 EPS versus $0.99 expected and revenue of $830.24 million, up 8.7% year over year. The company also has a $2 billion share repurchase program in place, while analysts have mostly been mixed on the stock.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) CFO Blake Jeffrey Grayson sold 15,000 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $45.55, for a total transaction of $683,250.00. Following the sale, the chief financial officer owned 141,429 shares of the company's stock, valued at approximately $6,442,090.95. The trade was a 9.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Docusign Stock Up 3.6%

NASDAQ:DOCU traded up $1.60 on Wednesday, hitting $46.02. The stock had a trading volume of 3,492,477 shares, compared to its average volume of 4,953,224. Docusign Inc. has a 1-year low of $40.16 and a 1-year high of $86.65. The stock has a market cap of $8.79 billion, a price-to-earnings ratio of 29.88, a PEG ratio of 1.31 and a beta of 0.90. The company has a fifty day moving average price of $46.93 and a two-hundred day moving average price of $51.11.

Docusign (NASDAQ:DOCU - Get Free Report) last issued its quarterly earnings data on Thursday, June 4th. The company reported $1.09 earnings per share for the quarter, topping the consensus estimate of $0.99 by $0.10. The company had revenue of $830.24 million during the quarter, compared to analyst estimates of $824.71 million. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The firm's revenue for the quarter was up 8.7% compared to the same quarter last year. During the same period in the prior year, the business posted $0.90 earnings per share. As a group, analysts anticipate that Docusign Inc. will post 2.03 earnings per share for the current year.

Docusign declared that its Board of Directors has approved a stock repurchase program 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 programs are often an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Docusign

Hedge funds have recently modified their holdings of the stock. Nordea Investment Management AB increased its position in Docusign by 3.8% during the 4th quarter. Nordea Investment Management AB now owns 1,198,634 shares of the company's stock worth $82,502,000 after purchasing an additional 43,810 shares during the period. Step Capital Management Pte. Ltd. acquired a new position in Docusign during the fourth quarter worth $2,052,000. Retirement Systems of Alabama increased its holdings in shares of Docusign by 4.9% in the 4th quarter. Retirement Systems of Alabama now owns 544,473 shares of the company's stock valued at $37,242,000 after purchasing an additional 25,367 shares in the last quarter. South Dakota Investment Council boosted its stake in shares of Docusign by 140.6% during the 3rd quarter. South Dakota Investment Council now owns 53,373 shares of the company's stock worth $3,848,000 after acquiring an additional 31,192 shares in the last quarter. Finally, Munich Reinsurance Co Stock Corp in Munich acquired a new stake in Docusign in the 3rd quarter valued at about $17,614,000. 77.64% of the stock is owned by institutional investors and hedge funds.

Key Docusign News

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.

Analyst Ratings Changes

Several analysts have recently issued reports on DOCU shares. Citizens Jmp reduced 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. BTIG Research cut their target price on shares of Docusign from $70.00 to $60.00 and set a "buy" rating on the stock in a research note on Friday, June 5th. Royal Bank Of Canada lowered their price target on Docusign from $70.00 to $55.00 and set a "sector perform" rating for the company in a report on Wednesday, March 18th. Bank of America assumed coverage on shares of Docusign in a research report on Tuesday, March 31st. They issued an "underperform" rating and a $52.00 target price on the stock. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Docusign from $78.00 to $65.00 and set a "neutral" rating for the company in a research note on Wednesday, March 18th. Three analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average 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.

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.