Docusign's (DOCU) "Hold" Rating Reiterated at Argus

Key Points

• Docusign's stock received a "hold" rating from Argus, reflecting a consensus average rating of "hold" among analysts, with a current price target of $94.14.
• Despite a recent drop in share price to $78.16, Docusign reported strong quarterly earnings, with EPS of $0.92 surpassing estimates and revenue of $800.64 million.
• The company has initiated a share buyback plan authorizing the repurchase of up to $1.00 billion in stock, indicating confidence in its valuation amid recent fluctuations.

Docusign (NASDAQ:DOCU - Get Free Report)'s stock had its "hold" rating restated by investment analysts at Argus in a research note issued on Monday,Benzinga reports.

Several other equities analysts have also issued reports on the company. 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. Wedbush cut their target price on Docusign from $100.00 to $85.00 and set a "neutral" rating on the stock in a report on Thursday, June 12th. Wells Fargo & Company lifted their price objective on Docusign from $80.00 to $85.00 and gave the stock an "equal weight" rating in a research report on Friday. UBS Group set a $95.00 price objective on Docusign in a research report on Friday. Finally, Evercore ISI boosted their target price on Docusign from $90.00 to $92.00 and gave the company an "in-line" rating in a research report on Friday. Four equities research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $94.14.

Docusign Price Performance

Shares of DOCU traded down $1.70 on Monday, reaching $78.16. 1,177,472 shares of the stock traded hands, compared to its average volume of 2,627,012. The stock's 50-day moving average price is $75.53 and its 200-day moving average price is $79.30. The firm has a market cap of $15.79 billion, a price-to-earnings ratio of 58.86, a P/E/G ratio of 29.81 and a beta of 1.02. Docusign has a 12 month low of $54.31 and a 12 month high of $107.86.

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

Docusign announced that its board has initiated a share repurchase plan on Thursday, June 5th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 6.6% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is undervalued.

Insider Activity

In other Docusign news, CFO Blake Jeffrey Grayson sold 15,143 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The shares were 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 owned 110,723 shares of the company's stock, valued at approximately $8,282,080.40. This trade represents a 12.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Allan C. Thygesen sold 40,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $77.51, for a total transaction of $3,100,400.00. Following the sale, the chief executive officer directly owned 143,983 shares of the company's stock, valued at $11,160,122.33. This trade represents a 21.74% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 78,552 shares of company stock worth $5,983,631. Company insiders own 1.66% of the company's stock.

Institutional Trading of Docusign

A number of large investors have recently made changes to their positions in the business. Norges Bank purchased a new position in shares of Docusign in the second quarter worth $140,987,000. Wellington Management Group LLP increased its stake in Docusign by 372.5% in the first quarter. Wellington Management Group LLP now owns 1,826,949 shares of the company's stock valued at $148,714,000 after purchasing an additional 1,440,269 shares during the last quarter. Duquesne Family Office LLC acquired a new stake in Docusign during the 1st quarter worth $87,477,000. Pacer Advisors Inc. raised its position in Docusign by 809.6% in the first quarter. Pacer Advisors Inc. now owns 1,167,290 shares of the company's stock worth $95,017,000 after acquiring an additional 1,038,962 shares in the last quarter. Finally, Third Point LLC purchased a new position in Docusign during the 2nd quarter valued at about $48,681,000. 77.64% of the stock is currently owned by institutional investors.

About Docusign

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.