DocuSign (NASDAQ:DOCU) Announces Quarterly Earnings Results

DocuSign (NASDAQ:DOCU - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.81 by $0.09, Briefing.com reports. The business had revenue of $763.65 million during the quarter, compared to the consensus estimate of $748.79 million. DocuSign had a return on equity of 14.90% and a net margin of 34.73%. The company's revenue for the quarter was up 7.6% compared to the same quarter last year. During the same period last year, the firm earned $0.82 earnings per share. DocuSign updated its FY 2026 guidance to EPS and its Q2 2026 guidance to EPS.

DocuSign Price Performance

DOCU stock traded down $17.62 on Friday, reaching $75.28. The company's stock had a trading volume of 22,572,298 shares, compared to its average volume of 2,857,113. DocuSign has a 52 week low of $48.70 and a 52 week high of $107.86. The company has a market capitalization of $15.24 billion, a P/E ratio of 15.52, a price-to-earnings-growth ratio of 6.94 and a beta of 1.21. The firm has a fifty day moving average of $82.08 and a two-hundred day moving average of $86.22.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on DOCU shares. JMP Securities reiterated a "market outperform" rating and issued a $124.00 price target on shares of DocuSign in a report on Tuesday. JPMorgan Chase & Co. decreased their price objective on shares of DocuSign from $81.00 to $77.00 and set a "neutral" rating for the company in a report on Friday. Morgan Stanley dropped their target price on shares of DocuSign from $92.00 to $86.00 and set an "equal weight" rating on the stock in a report on Friday. UBS Group reduced their price target on shares of DocuSign from $85.00 to $80.00 and set a "neutral" rating on the stock in a research report on Friday. Finally, Wells Fargo & Company boosted their price objective on shares of DocuSign from $65.00 to $67.00 and gave the company an "underweight" rating in a research report on Friday. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $89.15.

DocuSign declared that its Board of Directors has initiated a stock buyback program on Thursday, June 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to repurchase up to 6.6% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling at DocuSign

In other news, Director Teresa Briggs sold 534 shares of the firm's stock in a transaction on Monday, March 17th. The stock was sold at an average price of $87.41, for a total transaction of $46,676.94. Following the transaction, the director now directly owns 8,270 shares of the company's stock, valued at approximately $722,880.70. This trade represents a 6.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Blake Jeffrey Grayson sold 16,111 shares of the company's stock in a transaction dated Wednesday, March 19th. The stock was sold at an average price of $83.20, for a total transaction of $1,340,435.20. Following the completion of the sale, the chief financial officer now directly owns 93,960 shares of the company's stock, valued at $7,817,472. The trade was a 14.64% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 47,851 shares of company stock valued at $3,912,239 in the last quarter. Corporate insiders own 1.01% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in DocuSign stock. NewEdge Advisors LLC raised its position in shares of DocuSign, Inc. (NASDAQ:DOCU - Free Report) by 36.4% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 9,202 shares of the company's stock after purchasing an additional 2,457 shares during the quarter. NewEdge Advisors LLC's holdings in DocuSign were worth $749,000 as of its most recent SEC filing. 77.64% of the stock is currently owned by institutional investors.

DocuSign Company Profile

DocuSign, Inc provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.