AXQ Capital LP Raises Stock Holdings in Docusign Inc. $DOCU

Key Points

• AXQ Capital increased its DocuSign stake by 49.8% in the second quarter, owning 62,430 shares valued at approximately $2.77 million. Institutional investors collectively hold 77.64% of DOCU.
• DocuSign exceeded quarterly expectations, reporting adjusted EPS of $1.16 and revenue of $875.75 million, up 9.4% year over year. Management also raised its full-year revenue outlook to roughly $3.5 billion, citing momentum in AI-enabled solutions.
• DOCU shares opened at $65.97, above the analyst consensus target of $61.27, while the overall analyst rating remains Hold. BTIG raised its price target to $75 and maintained a Buy rating, but insiders sold 90,602 shares worth $4.32 million in the last quarter.

AXQ Capital LP boosted its stake in shares of Docusign Inc. (NASDAQ:DOCU - Free Report) by 49.8% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 62,430 shares of the company's stock after purchasing an additional 20,763 shares during the quarter. AXQ Capital LP's holdings in Docusign were worth $2,773,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently bought and sold shares of DOCU. Modus Advisors LLC purchased a new stake in shares of Docusign during the fourth quarter valued at $27,000. Cary Street Partners Investment Advisory LLC raised its stake in Docusign by 309.5% in the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 561 shares of the company's stock worth $38,000 after acquiring an additional 424 shares during the last quarter. Basepoint Wealth LLC acquired a new position in shares of Docusign in the fourth quarter valued at about $39,000. WealthCollab LLC raised its stake in shares of Docusign by 372.4% in the first quarter. WealthCollab LLC now owns 855 shares of the company's stock worth $41,000 after purchasing an additional 674 shares during the last quarter. Finally, Virtus Advisers LLC purchased a new position in shares of Docusign in the second quarter worth about $47,000. Hedge funds and other institutional investors own 77.64% of the company's stock.

Docusign Stock Performance

Docusign stock opened at $65.97 on Friday. The company's fifty day moving average price is $55.24 and its 200 day moving average price is $49.74. Docusign Inc. has a 1 year low of $40.16 and a 1 year high of $86.65. The stock has a market capitalization of $12.60 billion, a P/E ratio of 42.84, a P/E/G ratio of 2.32 and a beta of 0.90.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.07. The business had revenue of $875.75 million for the quarter, compared to the consensus estimate of $867.22 million. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The company's revenue was up 9.4% compared to the same quarter last year. During the same period last year, the firm posted $0.30 earnings per share. Sell-side analysts predict that Docusign Inc. will post 2.03 EPS for the current year.

Key Headlines Impacting Docusign

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Quarterly results exceeded expectations. DocuSign reported adjusted earnings of $1.16 per share, above the $1.08 consensus estimate and up from $0.92 a year earlier. Revenue reached $875.7 million, ahead of the $867.2 million FactSet estimate, with year-over-year growth of approximately 9%. DocuSign Q2 earnings article
• Positive Sentiment: Management raised its fiscal 2027 outlook. Full-year revenue guidance was lifted to approximately $3.5 billion, broadly matching analyst expectations, while third-quarter revenue guidance of $886 million to $890 million was also near or slightly above consensus. The company additionally raised guidance for annual recurring revenue (ARR) and IAM’s share of total ARR. DocuSign fiscal 2027 results
• Positive Sentiment: AI momentum is improving growth expectations. DocuSign said demand for AI-enabled solutions contributed to the sales outlook increase. Its AI platform also gained traction through an integration with Google Cloud, while BearingPoint integrated GenAIQ with DocuSign’s IAM platform for procurement workflows. DocuSign AI momentum article
• Positive Sentiment: BTIG raised its price target to $75 from $60 and maintained a Buy rating, providing additional support for the stock following the earnings report.
• Neutral Sentiment: The stock was already trading well above its 200-day moving average before earnings, indicating that some positive results may have been anticipated. Analysts overall still carry a consensus Hold recommendation.
• Negative Sentiment: Reported GAAP earnings were approximately $0.36 per share, below the $1.09 analyst estimate cited by one data provider, although the more closely followed adjusted EPS figure surpassed expectations. This accounting difference could create some volatility despite the favorable operating results.

Insider Activity at Docusign

In related news, CEO Allan C. Thygesen sold 26,250 shares of the business's stock in a transaction that occurred on 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 completion of the sale, the chief executive officer directly owned 159,038 shares in the company, valued at approximately $7,318,928.76. The trade was a 14.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James A. Beer sold 450 shares of the firm's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $64.02, for a total transaction of $28,809.00. Following the completion of the transaction, the director directly owned 14,586 shares in the company, valued at $933,795.72. This trade represents a 2.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 90,602 shares of company stock worth $4,323,749 in the last quarter. Corporate insiders own 0.59% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on DOCU shares. Citigroup reiterated a "market outperform" rating on shares of Docusign in a research note on Tuesday, August 18th. Wedbush lowered their price target on shares of Docusign from $60.00 to $58.00 and set a "neutral" rating on the stock in a report on Friday, June 5th. UBS Group set a $60.00 price target on Docusign in a research report on Friday, June 5th. BTIG Research lifted their price objective on Docusign from $60.00 to $75.00 and gave the company a "buy" rating in a research note on Wednesday. Finally, Wall Street Zen cut shares of Docusign from a "strong-buy" rating to a "buy" rating in a research note on Sunday, August 2nd. Four research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Docusign currently has a consensus rating of "Hold" and an average target price of $61.27.

Docusign Profile

DocuSign, Inc NASDAQ: DOCU is a leading provider of electronic signature and digital transaction management solutions. The company's flagship offering, DocuSign eSignature, enables organizations to send, sign and manage legally binding electronic agreements securely in the cloud. Beyond eSignature, DocuSign's Agreement Cloud combines contract lifecycle management, document generation, and workflow automation to streamline agreement processes from initiation through execution and storage.

DocuSign's platform serves a diverse customer base spanning industries such as finance, real estate, healthcare, technology, and government.

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