Docusign (NASDAQ:DOCU) Lowered to “Buy” Rating by Wall Street Zen

Docusign (NASDAQ:DOCU) was downgraded by investment analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Sunday.

Several other equities research analysts also recently commented on the company. Morgan Stanley dropped their target price on Docusign from $90.00 to $69.00 and set an “equal weight” rating on the stock in a report on Wednesday, March 18th. Weiss Ratings downgraded shares of Docusign from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Friday, June 26th. Citizens Jmp dropped their price objective on shares of Docusign from $124.00 to $86.00 and set a “market outperform” rating on the stock in a research note on Wednesday, March 18th. BTIG Research reduced their target price on shares of Docusign from $70.00 to $60.00 and set a “buy” rating on the stock in a research report on Friday, June 5th. Finally, UBS Group set a $60.00 target price on shares of Docusign in a research note on Friday, June 5th. Three equities research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $60.27.

Docusign Stock Performance

Docusign stock traded up $0.42 during trading on Friday, reaching $49.18. 3,139,499 shares of the company’s stock were exchanged, compared to its average volume of 4,011,580. The company’s 50-day moving average is $47.05 and its two-hundred day moving average is $50.17. Docusign has a 52-week low of $40.16 and a 52-week high of $86.65. The firm has a market cap of $9.39 billion, a price-to-earnings ratio of 31.94, a PEG ratio of 1.45 and a beta of 0.90.

Docusign (NASDAQ:DOCU) last released its quarterly earnings data on Thursday, June 4th. The company reported $1.09 EPS for the quarter, beating the consensus estimate of $0.99 by $0.10. The company had revenue of $830.24 million for the quarter, compared to analyst estimates of $824.71 million. Docusign had a return on equity of 17.48% and a net margin of 9.59%.The firm’s revenue was up 8.7% compared to the same quarter last year. During the same period last year, the company posted $0.90 earnings per share. Analysts anticipate that Docusign will post 2.03 EPS for the current year.

Docusign announced that its Board of Directors has authorized a share repurchase plan on Tuesday, March 17th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to reacquire up to 21% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Docusign

In other Docusign news, insider James P. Shaughnessy sold 12,000 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $45.54, for a total value of $546,480.00. Following the transaction, the insider directly owned 52,815 shares of the company’s stock, valued at $2,405,195.10. This represents a 18.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 15,902 shares of the stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $43.01, for a total value of $683,945.02. Following the transaction, the insider owned 72,805 shares of the company’s stock, valued at approximately $3,131,343.05. This trade 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 76,695 shares of company stock worth $3,476,002 over the last ninety days. Company insiders own 0.59% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in DOCU. NewEdge Advisors LLC grew its stake in Docusign by 36.4% in the first quarter. NewEdge Advisors LLC now owns 9,202 shares of the company’s stock worth $749,000 after purchasing an additional 2,457 shares in the last quarter. Guggenheim Capital LLC lifted its holdings in Docusign by 6.7% during the 2nd quarter. Guggenheim Capital LLC now owns 11,543 shares of the company’s stock worth $899,000 after buying an additional 729 shares during the last quarter. State Street Corp grew its position in shares of Docusign by 3.0% in 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 in the last quarter. Sei Investments Co. grew its position in shares of Docusign by 60.7% in 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 in the last quarter. Finally, Treasurer of the State of North Carolina increased its holdings in shares of Docusign by 51.0% in the 2nd quarter. Treasurer of the State of North Carolina now owns 189,178 shares of the company’s stock valued at $14,735,000 after acquiring an additional 63,911 shares during the last quarter. 77.64% of the stock is owned by institutional investors and hedge funds.

Docusign Company Profile

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.