Docusign's (DOCU) "Market Outperform" Rating Reaffirmed at JMP Securities

Key Points

• Docusign's stock received a "market outperform" rating from JMP Securities with a target price of $124.00, indicating a potential upside of 78.67% from its current price.
• For the last quarter, Docusign reported earnings per share of $0.92, exceeding expectations and reflecting an 8.8% year-over-year revenue increase to $800.64 million.
• Docusign has authorized a stock repurchase program worth $1 billion, suggesting that its leadership believes the stock is undervalued.

Docusign (NASDAQ:DOCU - Get Free Report)'s stock had its "market outperform" rating restated by analysts at JMP Securities in a report released on Friday,Benzinga reports. They currently have a $124.00 target price on the stock. JMP Securities' target price suggests a potential upside of 78.67% from the stock's current price.

A number of other equities research analysts have also recently issued reports on DOCU. Robert W. Baird upped their target price on shares of Docusign from $85.00 to $90.00 and gave the company a "neutral" rating in a report on Friday, September 5th. Wedbush lowered their price target on Docusign from $100.00 to $85.00 and set a "neutral" rating on the stock in a research report on Thursday, June 12th. Wall Street Zen raised Docusign from a "hold" rating to a "buy" rating in a research report on Saturday, September 13th. Argus reiterated a "hold" rating on shares of Docusign in a research note on Monday, September 8th. Finally, UBS Group set a $95.00 target price on Docusign in a report on Friday, September 5th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and fourteen have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $94.14.

Docusign Price Performance

Shares of NASDAQ DOCU opened at $69.40 on Friday. The stock has a market capitalization of $13.96 billion, a price-to-earnings ratio of 52.08, a PEG ratio of 3.43 and a beta of 1.02. Docusign has a fifty-two week low of $62.66 and a fifty-two week high of $107.86. The business has a 50-day moving average of $76.37 and a 200-day moving average of $79.20.

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

Docusign announced that its Board of Directors has authorized a stock repurchase program on Thursday, June 5th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to buy up to 6.6% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its shares are undervalued.

Insider Transactions at Docusign

In other Docusign news, CFO Blake Jeffrey Grayson sold 6,500 shares of the stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $71.20, for a total transaction of $462,800.00. Following the transaction, the chief financial officer owned 105,660 shares in the company, valued at $7,522,992. This represents a 5.80% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director James A. Beer sold 450 shares of Docusign stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $81.28, for a total transaction of $36,576.00. Following the completion of the sale, the director owned 14,199 shares of the company's stock, valued at approximately $1,154,094.72. The trade was a 3.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 96,533 shares of company stock worth $7,281,953. Company insiders own 1.01% of the company's stock.

Institutional Trading of Docusign

Several large investors have recently modified their holdings of DOCU. Norges Bank bought a new position in shares of Docusign in the 2nd quarter valued at $140,987,000. Wellington Management Group LLP grew its position 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 acquiring an additional 1,440,269 shares during the last quarter. Duquesne Family Office LLC bought a new position in Docusign in the first quarter valued at about $87,477,000. Pacer Advisors Inc. raised its stake in Docusign by 809.6% during 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 bought a new position in shares of Docusign in the second quarter worth about $48,681,000. 77.64% of the stock is owned by institutional investors and hedge funds.

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.

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