James Shaughnessy Sells 12,000 Shares of Docusign (NASDAQ:DOCU) Stock

Key Points

• Docusign insider James Shaughnessy sold 12,000 shares on July 1 at an average price of $45.54, totaling about $546,480. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
• Docusign recently beat quarterly earnings estimates, reporting $1.09 EPS versus $0.99 expected and revenue of $830.24 million, up 8.7% year over year. Analysts now expect the company to earn about 2.03 EPS for the current year.
• The company has an active $2 billion share buyback authorization, which could allow it to repurchase up to 21% of outstanding shares. Meanwhile, analysts are mixed on the stock, with a consensus rating of Hold and a consensus price target of $60.27.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) insider James Shaughnessy sold 12,000 shares of the company's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total transaction of $546,480.00. Following the transaction, the insider owned 52,815 shares of the company's stock, valued at $2,405,195.10. This represents a 18.51% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Docusign Stock Performance

Shares of DOCU traded up $1.60 during mid-day trading on Wednesday, reaching $46.02. 3,492,477 shares of the company's stock traded hands, compared to its average volume of 4,953,224. The business's 50-day moving average price is $46.93 and its 200-day moving average price is $51.11. The stock has a market capitalization of $8.79 billion, a P/E ratio of 29.88, a price-to-earnings-growth ratio of 1.31 and a beta of 0.90. Docusign Inc. has a 12 month low of $40.16 and a 12 month high of $86.65.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its earnings results on Thursday, June 4th. The company reported $1.09 EPS for the quarter, beating the consensus estimate of $0.99 by $0.10. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The firm had revenue of $830.24 million for the quarter, compared to analysts' expectations of $824.71 million. During the same period last year, the firm earned $0.90 EPS. The firm's revenue was up 8.7% compared to the same quarter last year. Equities research analysts anticipate that Docusign Inc. will post 2.03 EPS for the current year.

Docusign declared that its board has approved a stock buyback plan on Tuesday, March 17th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 21% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

A number of research analysts recently issued reports on DOCU shares. BTIG Research lowered their target price on Docusign from $70.00 to $60.00 and set a "buy" rating on the stock in a report on Friday, June 5th. Piper Sandler decreased their price objective on shares of Docusign from $75.00 to $52.00 and set a "neutral" rating for the company in a report on Wednesday, March 18th. Needham & Company LLC reissued a "hold" rating on shares of Docusign in a research report on Friday, June 5th. Wall Street Zen upgraded shares of Docusign from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 13th. Finally, Robert W. Baird decreased their target price on Docusign from $75.00 to $55.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 18th. Three equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Docusign presently has a consensus rating of "Hold" and a consensus price target of $60.27.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Norges Bank bought a new stake in Docusign in the 4th quarter valued at $186,795,000. Arrowstreet Capital Limited Partnership lifted its holdings 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 worth $250,568,000 after acquiring an additional 2,283,996 shares during the period. Capital World Investors lifted its holdings in shares of Docusign by 38.1% during the 4th quarter. Capital World Investors now owns 5,815,804 shares of the company's stock worth $397,801,000 after acquiring an additional 1,603,900 shares during the period. SG Americas Securities LLC boosted its position in shares of Docusign by 452.3% during the 1st quarter. SG Americas Securities LLC now owns 1,314,632 shares of the company's stock valued at $62,327,000 after acquiring an additional 1,076,622 shares in the last quarter. Finally, Woodline Partners LP boosted its position in shares of Docusign by 24,412.7% during the 3rd quarter. Woodline Partners LP now owns 958,938 shares of the company's stock valued at $69,130,000 after acquiring an additional 955,026 shares in the last quarter. 77.64% of the stock is owned by institutional investors.

Docusign News Summary

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Zacks Research raised its FY2027 EPS estimate for Docusign to $1.69 from $1.53, suggesting stronger expected profitability over the next couple of years.
• Positive Sentiment: The firm also increased its FY2028 EPS estimate to $1.76 from $1.89, and lifted Q1 2028 EPS to $0.47 from $0.45, reinforcing a more favorable near-to-midterm earnings view.
• Positive Sentiment: Analysts boosted Q4 2028 EPS to $0.62 from $0.59 and Q1 2029 EPS to $0.73 from $0.51, indicating continued expectation for earnings growth further out. Docusign estimate revisions
• Neutral Sentiment: Not all revisions were positive: Zacks trimmed Q2 2028 EPS to $0.28 from $0.43, Q3 2028 EPS to $0.38 from $0.41, and FY2029 EPS to $1.35 from $2.10, showing a mixed long-range outlook.
• Neutral Sentiment: The current-year consensus estimate remains around $1.97 per share, so the latest changes mainly affect longer-dated forecasts rather than near-term results.

About Docusign

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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