Wall Street Zen Downgrades Docusign (NASDAQ:DOCU) to Hold

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.

Docusign (NASDAQ:DOCU - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

Other equities analysts have also issued research reports about the company. Bank of America decreased their price target on Docusign from $88.00 to $85.00 and set a "neutral" rating for the company in a research report on Friday, June 6th. HSBC upgraded Docusign from a "reduce" rating to a "hold" rating and set a $70.00 price target for the company in a research report on Friday, April 11th. Morgan Stanley decreased their price target on Docusign from $92.00 to $86.00 and set an "equal weight" rating for the company in a research report on Friday, June 6th. William Blair reiterated an "outperform" rating on shares of Docusign in a research report on Monday, April 21st. Finally, Robert W. Baird decreased their price target on Docusign from $93.00 to $85.00 and set a "neutral" rating for the company in a research report on Friday, June 6th. Thirteen equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $89.77.

Docusign Stock Down 2.4%

Shares of DOCU stock opened at $73.84 on Friday. The stock has a 50-day simple moving average of $79.18 and a 200 day simple moving average of $82.66. Docusign has a fifty-two week low of $48.80 and a fifty-two week high of $107.86. The stock has a market capitalization of $14.92 billion, a P/E ratio of 13.96, a P/E/G ratio of 28.23 and a beta of 1.01.

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

Docusign declared that its Board of Directors has authorized a share buyback plan on Thursday, June 5th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 6.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other Docusign news, insider Robert Chatwani sold 22,875 shares of Docusign stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $74.79, for a total value of $1,710,821.25. Following the transaction, the insider directly owned 72,126 shares of the company's stock, valued at $5,394,303.54. The trade was a 24.08% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Blake Jeffrey Grayson sold 15,143 shares of Docusign stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $74.80, for a total value of $1,132,696.40. Following the completion of the transaction, the chief financial officer directly owned 110,723 shares in the company, valued at approximately $8,282,080.40. This represents a 12.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 78,552 shares of company stock valued at $5,983,631 over the last 90 days. 1.01% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Concurrent Investment Advisors LLC bought a new position in Docusign in the 1st quarter worth approximately $618,000. Gilman Hill Asset Management LLC increased its position in Docusign by 4.9% in the 1st quarter. Gilman Hill Asset Management LLC now owns 84,326 shares of the company's stock worth $6,864,000 after buying an additional 3,904 shares during the period. Paradiem LLC bought a new position in Docusign in the 1st quarter worth approximately $4,357,000. Wealth Enhancement Advisory Services LLC increased its position in Docusign by 528.7% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 108,232 shares of the company's stock worth $8,810,000 after buying an additional 91,017 shares during the period. Finally, Kentucky Retirement Systems bought a new position in Docusign in the 1st quarter worth approximately $1,114,000. 77.64% of the stock is owned by institutional investors.

Docusign Company Profile

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.

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