Docusign Inc. (DOCU) – What Are Researchers Thinking About This Stock?

Docusign Inc. (NASDAQ:DOCU) has been assigned an average recommendation of “Hold” from the nineteen brokerages that are currently covering the firm, Marketbeat reports. One analyst has rated the stock with a sell recommendation, fifteen have issued a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price target among brokers that have covered the stock in the last year is $67.62.

DOCU has been the subject of a number of recent analyst reports. Robert W. Baird raised their price target on shares of Docusign from $55.00 to $72.00 and gave the stock a “neutral” rating in a report on Friday, September 4th. Citizens Jmp reiterated a “market outperform” rating and issued a $86.00 price objective on shares of Docusign in a report on Friday, September 4th. Royal Bank Of Canada increased their price target on Docusign from $55.00 to $70.00 and gave the stock a “sector perform” rating in a report on Friday, September 4th. Bank of America raised their price objective on Docusign from $58.00 to $64.00 and gave the stock an “underperform” rating in a research report on Friday, September 4th. Finally, UBS Group boosted their price objective on shares of Docusign from $54.00 to $70.00 and gave the company a “neutral” rating in a report on Friday, September 4th.

Docusign Trading Down 0.4%

Shares of DOCU opened at $84.89 on Thursday. Docusign has a 12-month low of $40.16 and a 12-month high of $85.90. The firm has a 50-day moving average price of $68.63 and a 200 day moving average price of $54.37. The firm has a market capitalization of $15.87 billion, a P/E ratio of 50.76, a P/E/G ratio of 3.15 and a beta of 0.86.

Docusign (NASDAQ:DOCU) last issued its earnings results on Thursday, September 3rd. The company reported $1.16 EPS for the quarter, topping analysts’ consensus estimates of $1.09 by $0.07. The company had revenue of $875.75 million for the quarter, compared to the consensus estimate of $867.22 million. Docusign had a net margin of 9.82% and a return on equity of 18.29%. Docusign’s quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.30 earnings per share. Equities research analysts predict that Docusign will post 2.14 earnings per share for the current fiscal year.

Docusign News Summary

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign launched a PDF editor designed to let users modify, prepare, and manage documents within its contract-management workflow. The offering could improve customer convenience and create additional cross-selling opportunities. DocuSign launches PDF editor to streamline contract management
• Positive Sentiment: The company introduced SAP Signature and Agreement Management integrations for SAP Sales Cloud and SAP SuccessFactors. The solutions will be sold as SAP Solution Extensions, embedding DocuSign’s intelligent agreement-management tools into sales and human-resources workflows and potentially expanding its enterprise distribution. DocuSign Intelligent Agreement Management to Be Sold as SAP Solution Extensions
• Positive Sentiment: Analyst and financial-media coverage highlights DocuSign’s long-term growth potential as it broadens its platform into intelligent agreement management, rather than relying solely on e-signatures. Why DocuSign is a Top Growth Stock for the Long-Term
• Neutral Sentiment: Reports showing zero shares sold short and a zero-day days-to-cover ratio appear inconsistent with the company’s reported trading activity, so the short-interest data provides little actionable information. DocuSign’s founder listing a $21.9 million home is also unrelated to corporate fundamentals.
• Negative Sentiment: DOCU is trading near its 12-month high at a valuation of roughly 52 times earnings, leaving less room for disappointment if the new products do not accelerate revenue growth. The company’s latest reported quarter did beat earnings and revenue expectations, but growth was 9.4% year over year.

Insider Buying and Selling

In other news, CEO Allan C. Thygesen sold 26,250 shares of the business’s stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $69.29, for a total value of $1,818,862.50. Following the sale, the chief executive officer directly owned 166,801 shares of the company’s stock, valued at approximately $11,557,641.29. The trade was a 13.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Chatwani sold 14,676 shares of the business’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $69.41, for a total transaction of $1,018,661.16. Following the completion of the sale, the insider directly owned 75,928 shares in the company, valued at $5,270,162.48. This trade represents a 16.20% 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 have sold a total of 165,868 shares of company stock valued at $11,121,890 over the last three months. Company insiders own 0.59% of the company’s stock.

Hedge Funds Weigh In On Docusign

Hedge funds have recently made changes to their positions in the stock. SYM FINANCIAL Corp acquired a new stake in shares of Docusign in the third quarter valued at $239,000. DMC Group LLC acquired a new position in Docusign during the 3rd quarter worth about $258,000. Park Avenue Securities LLC lifted its stake in Docusign by 6.1% during the 3rd quarter. Park Avenue Securities LLC now owns 4,928 shares of the company’s stock worth $331,000 after acquiring an additional 282 shares in the last quarter. Signaturefd LLC boosted its holdings in Docusign by 31.7% during the 3rd quarter. Signaturefd LLC now owns 5,995 shares of the company’s stock valued at $403,000 after acquiring an additional 1,443 shares during the period. Finally, Citizens Financial Group Inc. RI boosted its holdings in Docusign by 10.7% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 18,056 shares of the company’s stock valued at $1,212,000 after acquiring an additional 1,749 shares during the period. Hedge funds and other institutional investors own 77.64% of the company’s stock.

Docusign Company Profile

DocuSign, Inc is a software company that provides digital agreement and electronic signature solutions. Its platform enables individuals and organizations to prepare, send, sign, manage and store agreements electronically, helping customers replace paper-based contracting processes with digital workflows.

The company’s offerings include eSignature, contract lifecycle management, identity verification, notarization and agreement analytics tools. These products are designed to support agreement creation, negotiation, execution and post-signature management across functions such as sales, human resources, procurement, legal and finance.

Founded in 2003, DocuSign serves businesses, government organizations and individual users in markets around the world.