Clearbridge Investments LLC Has $179.62 Million Stock Position in Docusign Inc. $DOCU

Key Points

• Clearbridge Investments trimmed its Docusign stake by 3.2% in the fourth quarter, but still held about 2.63 million shares valued at roughly $179.6 million.
• DocuSign beat first-quarter expectations with EPS of $1.09 and revenue of $830.2 million, and management slightly raised full-year revenue guidance as adoption of its AI-powered agreement platform improved.
• Despite the earnings beat, the stock fell because the outlook did not materially top Wall Street expectations; analysts remain cautious overall, with a consensus rating of Hold and multiple target-price cuts.

Clearbridge Investments LLC lowered its holdings in shares of Docusign Inc. (NASDAQ:DOCU - Free Report) by 3.2% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 2,625,984 shares of the company's stock after selling 85,726 shares during the period. Clearbridge Investments LLC owned approximately 1.31% of Docusign worth $179,617,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. Vanguard Group Inc. grew its stake in Docusign by 1.1% in the third quarter. Vanguard Group Inc. now owns 21,625,551 shares of the company's stock valued at $1,558,986,000 after acquiring an additional 225,525 shares during the period. State Street Corp grew its stake in Docusign by 0.5% in the third quarter. State Street Corp now owns 8,116,797 shares of the company's stock valued at $585,140,000 after acquiring an additional 41,821 shares during the period. Capital World Investors grew 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. Geode Capital Management LLC grew its stake in Docusign by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company's stock valued at $278,665,000 after acquiring an additional 18,873 shares during the period. Finally, Norges Bank acquired a new stake in Docusign in the fourth quarter valued at approximately $186,795,000. Institutional investors and hedge funds own 77.64% of the company's stock.

Key Headlines Impacting Docusign

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign beat first-quarter expectations, posting adjusted EPS of $1.09 versus $1.00 expected and revenue of $830.2 million versus $823.2 million estimated, with sales up 8.7% year over year. DocuSign Beats Fiscal Q1 Estimates, but IAM Traction Remains in Focus, RBC Says
• Positive Sentiment: The company said adoption of its AI-powered Intelligent Agreement Management platform is improving, and it raised full-year revenue guidance slightly, indicating demand remains healthy. DocuSign Nudges Revenue Outlook Higher After First-Quarter Profit Rises
• Neutral Sentiment: Analyst commentary remains mixed, with Wedbush lowering its price target to $58 from $60 while keeping a neutral rating, and BTIG cutting its target to $60 from $70 but maintaining a buy rating.
• Neutral Sentiment: DocuSign also highlighted AI integrations, including ChatGPT and Codex, and continued share repurchases, which support the long-term story but were not enough to offset near-term guidance concerns. Docusign Inc (DOCU) Q1 2027 Earnings Call Highlights
• Negative Sentiment: Shares moved lower because the full-year outlook did not meaningfully exceed Wall Street expectations, dampening enthusiasm despite the earnings beat and prompting a “sell-the-news” reaction. DocuSign shares fall despite Q1 beat as guidance disappoints investors
• Negative Sentiment: Investors also appear to be focusing on whether DocuSign can accelerate growth beyond the low-double-digit range, as recent reports say the outlook “left investors looking for stronger signs of accelerating growth.” DocuSign stock falls as cautious outlook overshadows earnings beat

Analyst Ratings Changes

DOCU has been the subject of a number of research reports. Piper Sandler reduced their price objective on Docusign from $75.00 to $52.00 and set a "neutral" rating for the company in a research note on Wednesday, March 18th. Robert W. Baird reduced their price objective on Docusign from $75.00 to $55.00 and set a "neutral" rating for the company in a research note on Wednesday, March 18th. Morgan Stanley reduced their price objective on Docusign from $90.00 to $69.00 and set an "equal weight" rating for the company in a research note on Wednesday, March 18th. Weiss Ratings raised Docusign from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday. Finally, Bank of America initiated coverage on Docusign in a research note on Tuesday, March 31st. They issued an "underperform" rating and a $52.00 price objective for the company. Three investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Docusign presently has a consensus rating of "Hold" and a consensus target price of $60.27.

Insider Buying and Selling

In other news, CEO Allan C. Thygesen sold 26,250 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $47.78, for a total value of $1,254,225.00. Following the transaction, the chief executive officer owned 152,237 shares in the company, valued at $7,273,883.86. This trade represents a 14.71% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 16,696 shares of the firm's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $48.10, for a total value of $803,077.60. Following the completion of the transaction, the insider owned 72,458 shares in the company, valued at $3,485,229.80. This represents a 18.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 65,489 shares of company stock valued at $3,125,814. 0.59% of the stock is currently owned by company insiders.

Docusign Price Performance

DOCU stock opened at $47.26 on Monday. Docusign Inc. has a twelve month low of $40.16 and a twelve month high of $86.65. The stock's 50 day moving average is $47.76 and its 200-day moving average is $54.09. The firm has a market capitalization of $9.18 billion, a PE ratio of 30.69, a P/E/G ratio of 1.80 and a beta of 0.92.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its earnings results on Thursday, June 4th. The company reported $1.09 earnings per share for the quarter, beating analysts' consensus estimates of $0.99 by $0.10. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The company had revenue of $830.24 million for the quarter, compared to analyst estimates of $824.71 million. During the same quarter last year, the company earned $0.90 earnings per share. The company's revenue for the quarter was up 8.7% on a year-over-year basis. On average, equities research analysts anticipate that Docusign Inc. will post 1.76 earnings per share for the current fiscal year.

Docusign announced that its Board of Directors has approved a share buyback program on Tuesday, March 17th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 21% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management believes its stock is undervalued.

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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