Zacks Research Issues Positive Outlook for Docusign Earnings

Key Points

• Zacks Research raised its Q3 2027 EPS estimate for DocuSign to $0.43 from $0.41; analysts expect full-year EPS of $2.10.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $67.33, despite several firms raising their targets.
• DocuSign recently beat quarterly expectations, reporting $1.16 EPS and $875.75 million in revenue, while revenue increased 9.4% year over year.

Docusign Inc. (NASDAQ:DOCU - Free Report) - Research analysts at Zacks Research upped their Q3 2027 earnings per share (EPS) estimates for shares of Docusign in a report issued on Thursday, September 24th. Zacks Research analyst Team now expects that the company will post earnings of $0.43 per share for the quarter, up from their previous estimate of $0.41. The consensus estimate for Docusign's current full-year earnings is $2.10 per share.

Several other research firms have also weighed in on DOCU. BTIG Research raised their target price on Docusign from $60.00 to $75.00 and gave the company a "buy" rating in a report on Wednesday, September 2nd. Evercore set a $65.00 price objective on Docusign in a research note on Friday, September 4th. Citigroup upped their target price on Docusign from $54.00 to $72.00 and gave the stock a "neutral" rating in a research report on Friday, September 4th. UBS Group increased their price target on Docusign from $54.00 to $70.00 and gave the company a "neutral" rating in a report on Friday, September 4th. Finally, Needham & Company LLC restated a "hold" rating on shares of Docusign in a research note on Friday, September 4th. Three research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Docusign currently has a consensus rating of "Hold" and a consensus target price of $67.33.

Docusign Stock Performance

DOCU stock opened at $67.50 on Monday. The firm has a market cap of $12.62 billion, a PE ratio of 41.16, a PEG ratio of 2.54 and a beta of 0.90. Docusign has a 1 year low of $40.16 and a 1 year high of $82.44. The company has a fifty day simple moving average of $61.69 and a 200 day simple moving average of $52.30.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $1.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.09 by $0.07. Docusign had a net margin of 9.82% and a return on equity of 18.29%. The firm had revenue of $875.75 million during the quarter, compared to analysts' expectations of $867.22 million. During the same period in the previous year, the company earned $0.30 earnings per share. The company's revenue was up 9.4% compared to the same quarter last year.

Insider Activity

In other Docusign news, Director Peter Solvik sold 46,000 shares of the stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $65.24, for a total value of $3,001,040.00. Following the completion of the sale, the director directly owned 49,558 shares of the company's stock, valued at $3,233,163.92. This represents a 48.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Allan Thygesen sold 26,250 shares of the business's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $46.02, for a total transaction of $1,208,025.00. Following the transaction, the chief executive officer owned 159,038 shares in the company, valued at approximately $7,318,928.76. The trade was a 14.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 182,568 shares of company stock worth $10,892,550. Corporate insiders own 0.59% of the company's stock.

Institutional Trading of Docusign

A number of hedge funds have recently modified their holdings of DOCU. BlackRock Inc. bought a new stake in Docusign in the 2nd quarter valued at $927,059,000. Norges Bank acquired a new stake in shares of Docusign during the 4th quarter valued at about $186,795,000. Arrowstreet Capital Limited Partnership boosted its position in shares of Docusign by 76.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company's stock valued at $250,568,000 after acquiring an additional 2,283,996 shares in the last quarter. Capital World Investors increased its stake in Docusign by 38.1% in the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company's stock valued at $397,801,000 after acquiring an additional 1,603,900 shares during the period. Finally, Bank of New York Mellon Corp bought a new stake in Docusign in the second quarter valued at about $56,219,000. Institutional investors own 77.64% of the company's stock.

About Docusign

DocuSign, Inc is a provider of digital agreement management and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping businesses replace paper-based contracting processes with digital workflows.

The company's products and services include DocuSign eSignature, which supports electronic signing and authentication, as well as tools for contract lifecycle management, agreement preparation, identity verification, notarial services and workflow automation.

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