Docusign (NASDAQ:DOCU) Hits New 1-Year High - What's Next?

Key Points

• DocuSign shares reached a new 52-week high of $85.90, significantly above the 50-day and 200-day moving averages of $68.76 and $55.95, respectively.
• The company exceeded quarterly expectations, reporting $1.16 in adjusted earnings per share versus the $1.09 consensus and revenue of $875.75 million, up 9.4% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $67.62, while insiders have sold approximately $11.1 million of stock over the past three months.

Docusign Inc. (NASDAQ:DOCU - Get Free Report) shares hit a new 52-week high during mid-day trading on Monday. The stock traded as high as $85.90 and last traded at $85.2790, with a volume of 115,106 shares changing hands. The stock had previously closed at $85.27.

Wall Street Analyst Weigh In

Several brokerages have recently commented on DOCU. UBS Group raised their price objective on shares of Docusign from $54.00 to $70.00 and gave the stock a "neutral" rating in a research report on Friday, September 4th. Citizens Jmp reissued a "market outperform" rating and set a $86.00 target price on shares of Docusign in a research note on Friday, September 4th. BTIG Research raised their price target on shares of Docusign from $60.00 to $75.00 and gave the stock a "buy" rating in a report on Wednesday, September 2nd. Bank of America lifted their price target on shares of Docusign from $58.00 to $64.00 and gave the company an "underperform" rating in a research note on Friday, September 4th. Finally, Morgan Stanley upped their price objective on shares of Docusign from $69.00 to $75.00 and gave the company an "equal weight" rating in a report on Friday, September 4th. Three equities research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $67.62.

Docusign Stock Down 0.3%

The stock has a market capitalization of $15.89 billion, a P/E ratio of 51.86, a price-to-earnings-growth ratio of 3.15 and a beta of 0.86. The business's 50 day simple moving average is $68.76 and its two-hundred day simple moving average is $55.95.

Docusign (NASDAQ:DOCU - Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $1.16 earnings per share for the quarter, topping analysts' consensus estimates of $1.09 by $0.07. The company had revenue of $875.75 million for the quarter, compared to analyst estimates of $867.22 million. Docusign had a net margin of 9.82% and a return on equity of 18.29%. The firm's revenue was up 9.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.30 EPS. Analysts predict that Docusign Inc. will post 2.14 earnings per share for the current year.

Insider Buying and Selling at Docusign

In other Docusign news, insider James P. Shaughnessy sold 12,000 shares of Docusign stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $68.80, for a total transaction of $825,600.00. Following the transaction, the insider directly owned 50,591 shares of the company's stock, valued at $3,480,660.80. The trade was a 19.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Allan C. Thygesen sold 26,250 shares of Docusign stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $69.29, for a total transaction of $1,818,862.50. Following the transaction, the chief executive officer directly owned 166,801 shares in the company, valued at $11,557,641.29. This represents a 13.60% 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 have sold a total of 165,868 shares of company stock valued at $11,121,890 in the last three months. Insiders own 0.59% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Signaturefd LLC increased its holdings in Docusign by 31.7% in the 3rd quarter. Signaturefd LLC now owns 5,995 shares of the company's stock worth $403,000 after acquiring an additional 1,443 shares during the last quarter. Citizens Financial Group Inc. RI lifted its holdings in Docusign by 10.7% during the third quarter. Citizens Financial Group Inc. RI now owns 18,056 shares of the company's stock valued at $1,212,000 after purchasing an additional 1,749 shares during the last quarter. Inspire Investing LLC lifted its holdings in Docusign by 24.4% during the third quarter. Inspire Investing LLC now owns 16,429 shares of the company's stock valued at $1,103,000 after purchasing an additional 3,218 shares during the last quarter. MBL Wealth LLC bought a new position in Docusign during the third quarter worth about $377,000. Finally, Root Financial Partners LLC purchased a new position in shares of Docusign in the third quarter worth about $75,000. 77.64% of the stock is owned by institutional investors.

About Docusign

DocuSign, Inc is a software company that provides digital agreement and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping customers replace paper-based contracting processes with digital workflows.

The company's offerings include eSignature, contract lifecycle management, identity verification, notarization and agreement analytics tools. These products are designed to support agreement creation, negotiation, execution and post-signature management across functions such as sales, human resources, procurement, legal and finance.

Founded in 2003, DocuSign serves businesses, government organizations and individual users in markets around the world.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.