Key Points
- Insider sale: Docusign insider James Shaughnessy sold 12,000 shares on July 1 at an average price of $45.54, totaling about $546,480. The sale cut his direct ownership by 18.51% and was made under a pre-arranged Rule 10b5-1 plan.
- Recent earnings beat: Docusign reported quarterly EPS of $1.09, topping analyst expectations of $0.99, while revenue of $830.24 million also slightly exceeded estimates. Revenue rose 8.7% year over year, and analysts now expect full-year EPS of about 2.03.
- Mixed outlook and support signals: The company has a $2 billion share buyback authorization, and institutional ownership remains high at 77.64%. Wall Street is still cautious overall, with an average Hold rating and a consensus price target of $60.27.
Docusign Inc. (NASDAQ:DOCU - Get Free Report) CRO Paula Hansen sold 6,000 shares of the firm's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total value of $273,240.00. Following the completion of the transaction, the executive owned 89,972 shares in the company, valued at approximately $4,097,324.88. This trade represents a 6.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Docusign Price Performance
Shares of Docusign stock opened at $46.02 on Thursday. Docusign Inc. has a 1-year low of $40.16 and a 1-year high of $86.65. The company's fifty day simple moving average is $46.93 and its 200-day simple moving average is $51.11. The stock has a market capitalization of $8.79 billion, a PE ratio of 29.88, a P/E/G ratio of 1.31 and a beta of 0.90.
Docusign (NASDAQ:DOCU - Get Free Report) last released its earnings results on Thursday, June 4th. The company reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.99 by $0.10. The company had revenue of $830.24 million during the quarter, compared to analyst estimates of $824.71 million. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The firm's quarterly revenue was up 8.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.90 EPS. As a group, research analysts anticipate that Docusign Inc. will post 2.03 EPS for the current year.
Docusign announced that its Board of Directors has initiated a stock buyback program on Tuesday, March 17th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the company to repurchase up to 21% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's management believes its stock is undervalued.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently made changes to their positions in DOCU. EverSource Wealth Advisors LLC lifted its position in Docusign by 15.1% during the third quarter. EverSource Wealth Advisors LLC now owns 1,229 shares of the company's stock valued at $89,000 after acquiring an additional 161 shares during the last quarter. Smartleaf Asset Management LLC grew its holdings in Docusign by 8.2% in the second quarter. Smartleaf Asset Management LLC now owns 2,169 shares of the company's stock worth $166,000 after purchasing an additional 165 shares during the last quarter. Centaurus Financial Inc. increased its position in shares of Docusign by 3.4% during the third quarter. Centaurus Financial Inc. now owns 5,582 shares of the company's stock worth $402,000 after purchasing an additional 184 shares in the last quarter. Tred Avon Family Wealth LLC increased its position in shares of Docusign by 3.6% during the first quarter. Tred Avon Family Wealth LLC now owns 6,176 shares of the company's stock worth $293,000 after purchasing an additional 215 shares in the last quarter. Finally, True Wealth Design LLC lifted its holdings in shares of Docusign by 105.2% during the 4th quarter. True Wealth Design LLC now owns 433 shares of the company's stock valued at $30,000 after purchasing an additional 222 shares during the last quarter. 77.64% of the stock is currently owned by hedge funds and other institutional investors.
Key Docusign News
Here are the key news stories impacting Docusign this week:
- Positive Sentiment: Zacks Research raised its FY2027 EPS estimate for Docusign to $1.69 from $1.53, suggesting stronger expected profitability over the next couple of years.
- Positive Sentiment: The firm also increased its FY2028 EPS estimate to $1.76 from $1.89, and lifted Q1 2028 EPS to $0.47 from $0.45, reinforcing a more favorable near-to-midterm earnings view.
- Positive Sentiment: Analysts boosted Q4 2028 EPS to $0.62 from $0.59 and Q1 2029 EPS to $0.73 from $0.51, indicating continued expectation for earnings growth further out. Docusign estimate revisions
- Neutral Sentiment: Not all revisions were positive: Zacks trimmed Q2 2028 EPS to $0.28 from $0.43, Q3 2028 EPS to $0.38 from $0.41, and FY2029 EPS to $1.35 from $2.10, showing a mixed long-range outlook.
- Neutral Sentiment: The current-year consensus estimate remains around $1.97 per share, so the latest changes mainly affect longer-dated forecasts rather than near-term results.
Analyst Upgrades and Downgrades
DOCU has been the subject of a number of recent research reports. Wall Street Zen raised shares of Docusign from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 13th. Citigroup increased their price target on shares of Docusign from $50.00 to $54.00 and gave the company a "neutral" rating in a report on Friday, June 5th. BTIG Research dropped their price target on Docusign from $70.00 to $60.00 and set a "buy" rating for the company in a research report on Friday, June 5th. Robert W. Baird reduced their price objective on Docusign from $75.00 to $55.00 and set a "neutral" rating on the stock in a research note on Wednesday, March 18th. Finally, UBS Group set a $60.00 price objective on Docusign in a research report on Friday, June 5th. Three investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $60.27.
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About Docusign
(
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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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