Docusign (NASDAQ:DOCU) Downgraded to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen has downgraded **Docusign** (NASDAQ:DOCU) from a "buy" rating to a "hold" rating, indicating a shift in analyst sentiment.
• The current consensus rating for Docusign's stock is "Hold" with a price target of **$89.77**, following various adjustments from other firms like Bank of America and Morgan Stanley.
• Docusign's Board of Directors has approved a **$1 billion** share buyback plan, which signals confidence in the company's stock valuation amidst recent insider selling activities.

Wall Street Zen cut shares of Docusign (NASDAQ:DOCU - Free Report) from a buy rating to a hold rating in a research report report published on Saturday morning.

Several other analysts have also commented on the stock. Needham & Company LLC restated a "hold" rating on shares of Docusign in a report on Friday, June 6th. William Blair reiterated an "outperform" rating on shares of Docusign in a report on Monday, April 21st. Robert W. Baird cut their target price on shares of Docusign from $93.00 to $85.00 and set a "neutral" rating for the company in a research report on Friday, June 6th. HSBC raised shares of Docusign from a "reduce" rating to a "hold" rating and set a $70.00 price objective for the company in a research report on Friday, April 11th. Finally, Bank of America dropped their target price on shares of Docusign from $88.00 to $85.00 and set a "neutral" rating for the company in a report on Friday, June 6th. Thirteen investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $89.77.

Docusign Trading Up 2.1%

Shares of NASDAQ:DOCU traded up $1.53 during mid-day trading on Friday, reaching $75.37. The company had a trading volume of 653,092 shares, compared to its average volume of 2,572,248. The firm has a market cap of $15.23 billion, a price-to-earnings ratio of 14.24, a PEG ratio of 28.13 and a beta of 1.01. The company's 50-day moving average price is $78.75 and its 200-day moving average price is $82.38. Docusign has a one year low of $50.78 and a one year high of $107.86.

Docusign (NASDAQ:DOCU - Get Free Report) last announced its earnings results on Thursday, June 5th. The company reported $0.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.09. Docusign had a net margin of 36.50% and a return on equity of 14.27%. The company had revenue of $763.65 million during the quarter, compared to analyst estimates of $748.79 million. During the same period in the previous year, the business earned $0.82 earnings per share. The firm's quarterly revenue was up 7.6% compared to the same quarter last year. On average, research analysts anticipate that Docusign will post 1.17 EPS for the current fiscal year.

Docusign announced that its board has approved a stock repurchase plan on Thursday, June 5th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 6.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Docusign

In related news, insider Robert Chatwani sold 22,875 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $74.79, for a total transaction of $1,710,821.25. Following the sale, the insider owned 72,126 shares in the company, valued at approximately $5,394,303.54. This trade represents a 24.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Teresa Briggs sold 534 shares of the stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $74.37, for a total transaction of $39,713.58. Following the transaction, the director directly owned 8,805 shares in the company, valued at approximately $654,827.85. This represents a 5.72% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 78,552 shares of company stock valued at $5,983,631 over the last three months. Company insiders own 1.66% of the company's stock.

Hedge Funds Weigh In On Docusign

Hedge funds have recently made changes to their positions in the business. Banque Transatlantique SA purchased a new position in shares of Docusign in the 1st quarter valued at $26,000. Hemington Wealth Management raised its stake in shares of Docusign by 318.1% in the 1st quarter. Hemington Wealth Management now owns 347 shares of the company's stock valued at $28,000 after acquiring an additional 264 shares during the period. Golden State Wealth Management LLC raised its stake in shares of Docusign by 519.4% in the 1st quarter. Golden State Wealth Management LLC now owns 384 shares of the company's stock valued at $31,000 after acquiring an additional 322 shares during the period. Summit Securities Group LLC purchased a new stake in Docusign during the 1st quarter worth $34,000. Finally, Wood Tarver Financial Group LLC purchased a new stake in Docusign during the 4th quarter worth $37,000. Hedge funds and other institutional investors own 77.64% of the company's stock.

About Docusign

DocuSign, Inc provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.