Key Points
- DocuSign director James Beer sold 450 shares on June 2 at an average price of $55.04, worth about $24,768. The sale was made under a pre-arranged Rule 10b5-1 plan, and his ownership fell 2.91% to 15,036 shares.
- DocuSign recently beat quarterly expectations, reporting EPS of $1.01 versus the $0.95 estimate and revenue of $836.86 million, up 7.8% year over year. The company also announced a $2 billion share buyback authorization.
- Investor focus is shifting to DocuSign’s AI strategy and upcoming June 4 earnings report, after the company expanded into ChatGPT and Codex and named Graham Sheldon as chief product officer. Analysts currently rate the stock a Hold on average, with a consensus price target of $61.40.
Docusign Inc. (NASDAQ:DOCU - Get Free Report) Director Teresa Briggs sold 365 shares of the business's stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $50.04, for a total value of $18,264.60. Following the completion of the transaction, the director directly owned 10,263 shares of the company's stock, valued at approximately $513,560.52. The trade was a 3.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Docusign Trading Down 3.4%
NASDAQ:DOCU opened at $55.10 on Wednesday. Docusign Inc. has a 1 year low of $40.16 and a 1 year high of $94.67. The stock has a market cap of $10.71 billion, a price-to-earnings ratio of 37.23, a PEG ratio of 2.17 and a beta of 0.92. The stock has a 50-day moving average price of $47.41 and a two-hundred day moving average price of $54.53.
Docusign (NASDAQ:DOCU - Get Free Report) last posted its earnings results on Tuesday, March 17th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.95 by $0.06. Docusign had a return on equity of 16.86% and a net margin of 9.60%.The firm had revenue of $836.86 million during the quarter, compared to analysts' expectations of $828.23 million. During the same period in the previous year, the firm earned $0.86 earnings per share. The company's revenue was up 7.8% on a year-over-year basis. Sell-side analysts forecast that Docusign Inc. will post 1.76 earnings per share for the current year.
Docusign declared that its board has initiated a share repurchase plan on Tuesday, March 17th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to purchase up to 21% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's management believes its shares are undervalued.
Wall Street Analyst Weigh In
A number of research analysts have issued reports on the company. HSBC set a $53.00 target price on Docusign in a research note on Friday, February 13th. BTIG Research reissued a "buy" rating and issued a $70.00 target price on shares of Docusign in a research note on Wednesday, March 18th. Bank of America started coverage on Docusign in a report on Tuesday, March 31st. They issued an "underperform" rating and a $52.00 price target on the stock. UBS Group cut their price target on Docusign from $75.00 to $54.00 and set a "neutral" rating on the stock in a report on Wednesday, March 18th. Finally, Needham & Company LLC restated a "hold" rating on shares of Docusign in a report on Tuesday, March 10th. Three investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $61.40.
Read Our Latest Stock Report on DOCU
Institutional Trading of Docusign
A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Docusign by 1.1% in the third quarter. Vanguard Group Inc. now owns 21,625,551 shares of the company's stock valued at $1,558,986,000 after purchasing an additional 225,525 shares in the last quarter. State Street Corp lifted its holdings in shares of Docusign by 0.9% in the fourth quarter. State Street Corp now owns 8,193,805 shares of the company's stock valued at $560,456,000 after purchasing an additional 77,008 shares in the last quarter. Capital World Investors lifted its holdings in shares of Docusign by 38.1% in the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company's stock valued at $397,801,000 after purchasing an additional 1,603,900 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Docusign by 76.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company's stock valued at $250,568,000 after purchasing an additional 2,283,996 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of Docusign by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company's stock valued at $278,665,000 after purchasing an additional 18,873 shares in the last quarter. 77.64% of the stock is currently owned by institutional investors.
Key Stories Impacting Docusign
Here are the key news stories impacting Docusign this week:
- Positive Sentiment: Docusign announced its app is now available in ChatGPT and Codex, extending its Intelligent Agreement Management platform into OpenAI products and potentially boosting adoption by making it easier for customers to create, analyze, and manage agreements with natural-language prompts. Docusign Brings Trusted Agreement Intelligence and Workflows into ChatGPT and Codex
- Positive Sentiment: The company also named Graham Sheldon as Chief Product Officer, a move aimed at accelerating its AI-focused product strategy and strengthening execution around its Intelligent Agreement Management vision. Docusign Appoints Graham Sheldon as Chief Product Officer to Accelerate Intelligent Agreement Management Vision
- Neutral Sentiment: Several directors disclosed stock sales, including Anna Marrs, James A. Beer, and Teresa Briggs. The transactions were relatively small and were executed under pre-arranged Rule 10b5-1 plans, which usually makes them less concerning for investors. SEC filing: Anna Marrs Form 4
- Neutral Sentiment: Investor attention is also focused on Docusign’s June 4 earnings report, with recent commentary suggesting the market wants proof that its AI-driven product strategy is translating into stronger execution. Dear Docusign Stock Fans, Mark Your Calendars for June 4
About Docusign
(
Get Free Report)
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.
Further Reading
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