DocuSign (NASDAQ:DOCU) Posts Earnings Results, Beats Estimates By $0.09 EPS

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

DocuSign Stock Down 19.0%

NASDAQ DOCU traded down $17.62 during midday trading on Friday, hitting $75.28. The company had a trading volume of 22,572,298 shares, compared to its average volume of 2,797,809. The stock has a market cap of $15.24 billion, a price-to-earnings ratio of 15.52, a P/E/G ratio of 6.94 and a beta of 1.14. The firm has a fifty day simple moving average of $82.08 and a two-hundred day simple moving average of $86.27. DocuSign has a fifty-two week low of $48.80 and a fifty-two week high of $107.86.

DocuSign announced that its board has initiated a stock repurchase program on Thursday, June 5th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 6.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

Several research analysts have recently issued reports on DOCU shares. Jefferies Financial Group decreased their price objective on shares of DocuSign from $115.00 to $105.00 and set a "buy" rating for the company in a report on Monday, March 31st. William Blair restated an "outperform" rating on shares of DocuSign in a research report on Monday, April 21st. Robert W. Baird cut their target price on shares of DocuSign from $93.00 to $85.00 and set a "neutral" rating for the company in a research report on Friday. Bank of America lowered their price target on DocuSign from $88.00 to $85.00 and set a "neutral" rating for the company in a research note on Friday. Finally, 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. One analyst has rated the stock with a sell rating, eleven have given a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, DocuSign presently has a consensus rating of "Hold" and an average target price of $89.15.

Insiders Place Their Bets

In other DocuSign news, CFO Blake Jeffrey Grayson sold 16,111 shares of the firm's stock in a transaction on Wednesday, March 19th. The shares were sold at an average price of $83.20, for a total value of $1,340,435.20. Following the sale, the chief financial officer now directly owns 93,960 shares in the company, valued at $7,817,472. This trade represents a 14.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, 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 completion of the sale, the director now owns 8,270 shares in the company, valued at $722,880.70. This represents a 6.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 47,851 shares of company stock worth $3,912,239 in the last ninety days. Insiders own 1.01% of the company's stock.

Hedge Funds Weigh In On DocuSign

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

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.