Docusign (NASDAQ:DOCU) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley has raised its target price for Docusign (NASDAQ:DOCU) from $86.00 to $90.00, indicating a potential upside of 14.62% from the last close, while maintaining an "equal weight" rating on the stock.
• The company reported a quarterly earnings per share (EPS) of $0.92, surpassing the consensus estimate and showing a revenue increase of 8.8% year-over-year, reaching $800.64 million.
• Docusign's Board of Directors has approved a stock buyback plan allowing the company to repurchase up to $1 billion worth of shares, reflecting a belief in the stock's undervaluation.

Docusign (NASDAQ:DOCU - Get Free Report) had its target price lifted by Morgan Stanley from $86.00 to $90.00 in a report issued on Monday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price target indicates a potential upside of 14.62% from the company's previous close.

Several other brokerages have also issued reports on DOCU. Robert W. Baird lifted their price target on Docusign from $85.00 to $90.00 and gave the company a "neutral" rating in a research note on Friday. Wall Street Zen downgraded Docusign from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Piper Sandler increased their price objective on Docusign from $85.00 to $90.00 and gave the company a "neutral" rating in a report on Friday. Evercore ISI lifted their price objective on Docusign from $90.00 to $92.00 and gave the company an "in-line" rating in a research note on Friday. Finally, UBS Group set a $95.00 price objective on Docusign in a report on Friday. Four research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $94.14.

Docusign Trading Up 3.0%

NASDAQ:DOCU opened at $78.52 on Monday. Docusign has a 1 year low of $54.31 and a 1 year high of $107.86. The stock has a market cap of $15.87 billion, a price-to-earnings ratio of 60.05, a PEG ratio of 29.81 and a beta of 1.02. The stock has a 50-day moving average price of $75.53 and a two-hundred day moving average price of $79.30.

Docusign (NASDAQ:DOCU - Get Free Report) last issued its quarterly earnings results on Thursday, September 4th. The company reported $0.92 EPS for the quarter, beating the consensus estimate of $0.84 by $0.08. Docusign had a return on equity of 14.01% and a net margin of 9.08%.The firm had revenue of $800.64 million during the quarter, compared to analysts' expectations of $780.35 million. During the same period in the prior year, the firm posted $0.97 earnings per share. The business's quarterly revenue was up 8.8% compared to the same quarter last year. Docusign has set its Q3 2026 guidance at EPS. FY 2026 guidance at EPS. Sell-side analysts forecast that Docusign will post 1.17 earnings per share for the current year.

Docusign declared that its Board of Directors has initiated a stock buyback plan on Thursday, June 5th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to reacquire up to 6.6% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, CEO Allan C. Thygesen sold 40,000 shares of the business's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $77.51, for a total value of $3,100,400.00. Following the completion of the sale, the chief executive officer owned 143,983 shares in the company, valued at approximately $11,160,122.33. The trade was a 21.74% 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 15,143 shares of the business's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $74.80, for a total transaction of $1,132,696.40. Following the completion of the transaction, the chief financial officer directly owned 110,723 shares of the company's stock, valued at $8,282,080.40. This trade represents a 12.03% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 78,552 shares of company stock worth $5,983,631 over the last three months. 1.66% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Docusign

Several hedge funds have recently added to or reduced their stakes in DOCU. New Age Alpha Advisors LLC boosted its stake in shares of Docusign by 738.2% during the 1st quarter. New Age Alpha Advisors LLC now owns 41,187 shares of the company's stock worth $3,353,000 after acquiring an additional 36,273 shares in the last quarter. Pinpoint Asset Management Ltd raised its position in shares of Docusign by 54.3% during the 1st quarter. Pinpoint Asset Management Ltd now owns 56,985 shares of the company's stock worth $4,639,000 after purchasing an additional 20,043 shares during the last quarter. Concurrent Investment Advisors LLC acquired a new stake in Docusign in the 1st quarter valued at about $618,000. Gilman Hill Asset Management LLC raised its holdings in Docusign by 4.9% in the 1st quarter. Gilman Hill Asset Management LLC now owns 84,326 shares of the company's stock valued at $6,864,000 after acquiring an additional 3,904 shares during the last quarter. Finally, Blair William & Co. IL increased its holdings in shares of Docusign by 1.7% during the 1st quarter. Blair William & Co. IL now owns 387,542 shares of the company's stock worth $31,546,000 after buying an additional 6,460 shares during the last quarter. 77.64% of the stock is owned by hedge funds and other 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.

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