What is Zacks Research's Forecast for Docusign Q4 Earnings?

Key Points

• Zacks Research raised its Q4 2027 EPS estimate for Docusign to $0.46 from $0.45, while the full-year consensus estimate stands at $1.97 per share.
• Analyst sentiment remains cautious: the stock’s consensus rating is “Hold,” with 3 Buy, 14 Hold, and 2 Sell ratings and an average price target of $60.27.
• Docusign recently beat quarterly expectations, reporting $1.09 EPS and $830.24 million in revenue versus estimates, while also authorizing a $2 billion share buyback.

Docusign Inc. (NASDAQ:DOCU - Free Report) - Equities researchers at Zacks Research boosted their Q4 2027 earnings estimates for shares of Docusign in a note issued to investors on Thursday, June 25th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.46 for the quarter, up from their previous forecast of $0.45. The consensus estimate for Docusign's current full-year earnings is $1.97 per share.

Several other brokerages also recently commented on DOCU. Weiss Ratings downgraded Docusign from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Friday. Royal Bank Of Canada decreased their target price on Docusign from $70.00 to $55.00 and set a "sector perform" rating for the company in a research note on Wednesday, March 18th. Wells Fargo & Company lowered their price target on Docusign from $60.00 to $55.00 and set an "equal weight" rating for the company in a report on Friday, June 5th. Morgan Stanley dropped their price target on Docusign from $90.00 to $69.00 and set an "equal weight" rating on the stock in a research report on Wednesday, March 18th. Finally, Piper Sandler cut their price objective on Docusign from $75.00 to $52.00 and set a "neutral" rating on the stock in a report on Wednesday, March 18th. Three equities research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $60.27.

Docusign Stock Up 0.2%

Shares of DOCU stock opened at $45.31 on Monday. Docusign has a 12-month low of $40.16 and a 12-month high of $86.65. The firm has a market capitalization of $8.65 billion, a price-to-earnings ratio of 29.43, a price-to-earnings-growth ratio of 1.37 and a beta of 0.92. The firm has a fifty day moving average of $47.01 and a 200-day moving average of $51.62.

Docusign (NASDAQ:DOCU - Get Free Report) last issued 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. The firm had revenue of $830.24 million during the quarter, compared to the consensus estimate of $824.71 million. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The business's quarterly revenue was up 8.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.90 earnings per share.

Docusign announced that its board has initiated a share buyback plan on Tuesday, March 17th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 21% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Docusign

In related news, insider James P. Shaughnessy sold 12,000 shares of the firm's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $46.83, for a total transaction of $561,960.00. Following the sale, the insider directly owned 53,631 shares in the company, valued at $2,511,539.73. This trade represents a 18.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 15,902 shares of the business's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $43.01, for a total transaction of $683,945.02. Following the completion of the sale, the insider directly owned 72,805 shares in the company, valued at $3,131,343.05. This represents a 17.93% 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 sold a total of 64,695 shares of company stock valued at $3,006,682 over the last quarter. 0.59% of the stock is currently owned by corporate insiders.

Institutional Trading of Docusign

A number of institutional investors have recently modified their holdings of DOCU. NewEdge Advisors LLC raised its position in Docusign by 36.4% in the 1st quarter. NewEdge Advisors LLC now owns 9,202 shares of the company's stock valued at $749,000 after buying an additional 2,457 shares during the last quarter. Guggenheim Capital LLC lifted its stake in Docusign by 6.7% in the 2nd quarter. Guggenheim Capital LLC now owns 11,543 shares of the company's stock valued at $899,000 after acquiring an additional 729 shares in the last quarter. State Street Corp boosted its position in Docusign by 3.0% during the 2nd quarter. State Street Corp now owns 8,074,976 shares of the company's stock worth $628,960,000 after acquiring an additional 236,494 shares during the last quarter. Sei Investments Co. boosted its position in Docusign by 60.7% during the 2nd quarter. Sei Investments Co. now owns 40,386 shares of the company's stock worth $3,146,000 after acquiring an additional 15,247 shares during the last quarter. Finally, Treasurer of the State of North Carolina grew its stake in shares of Docusign by 51.0% during the 2nd quarter. Treasurer of the State of North Carolina now owns 189,178 shares of the company's stock worth $14,735,000 after acquiring an additional 63,911 shares in the last quarter. 77.64% of the stock is currently owned by institutional investors.

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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