Docusign (NASDAQ:DOCU) Earns Underperform Rating from Analysts at Bank of America

Bank of America began coverage on shares of Docusign (NASDAQ:DOCU) in a research report report published on Tuesday morning, Marketbeat.com reports. The firm issued an underperform rating and a $52.00 target price on the stock.

A number of other brokerages have also weighed in on DOCU. Robert W. Baird cut their target price on shares of Docusign from $75.00 to $55.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 18th. Morgan Stanley dropped their price target on Docusign from $90.00 to $69.00 and set an “equal weight” rating for the company in a research note on Wednesday, March 18th. Evercore cut their price objective on Docusign from $92.00 to $80.00 and set an “in-line” rating on the stock in a report on Friday, December 5th. Piper Sandler reduced their price objective on Docusign from $75.00 to $52.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 18th. Finally, Jefferies Financial Group cut Docusign from a “buy” rating to a “hold” rating and lowered their target price for the stock from $105.00 to $45.00 in a report on Monday, February 23rd. Five investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Docusign presently has an average rating of “Hold” and a consensus price target of $64.67.

Docusign Trading Up 0.4%

DOCU stock opened at $48.37 on Tuesday. The stock has a market capitalization of $9.40 billion, a P/E ratio of 32.68, a price-to-earnings-growth ratio of 1.88 and a beta of 0.99. Docusign has a 12 month low of $40.16 and a 12 month high of $94.67. The firm has a 50-day moving average price of $47.58 and a 200-day moving average price of $62.08.

Docusign (NASDAQ:DOCU) last announced its quarterly earnings results on Tuesday, March 17th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.06. The company had revenue of $836.86 million for the quarter, compared to analyst estimates of $828.23 million. Docusign had a net margin of 9.60% and a return on equity of 16.86%. The firm’s revenue was up 7.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.86 EPS. As a group, equities analysts predict that Docusign will post 1.17 EPS for the current fiscal year.

Docusign declared that its Board of Directors has initiated a stock buyback 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 stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.

Insider Activity

In other news, insider James P. Shaughnessy sold 12,000 shares of Docusign 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 transaction, the insider owned 53,631 shares in the company, valued at approximately $2,511,539.73. The trade was a 18.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Blake Jeffrey Grayson sold 6,500 shares of the business’s stock in a transaction on Friday, January 9th. The stock was sold at an average price of $70.00, for a total transaction of $455,000.00. Following the completion of the sale, the chief financial officer directly owned 111,713 shares in the company, valued at approximately $7,819,910. This represents a 5.50% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 94,423 shares of company stock valued at $5,215,249. 1.01% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Docusign

Institutional investors and hedge funds have recently made changes to their positions in the stock. Norges Bank acquired a new position in shares of Docusign in the fourth quarter worth approximately $186,795,000. Capital World Investors increased its position in Docusign by 38.1% during the 4th 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 during the period. Woodline Partners LP increased its position in Docusign by 24,412.7% during the 3rd quarter. Woodline Partners LP now owns 958,938 shares of the company’s stock valued at $69,130,000 after purchasing an additional 955,026 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in Docusign by 46.1% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,001,132 shares of the company’s stock worth $205,277,000 after purchasing an additional 946,512 shares during the last quarter. Finally, Marshall Wace LLP lifted its position in shares of Docusign by 1,575.5% in the 4th quarter. Marshall Wace LLP now owns 888,411 shares of the company’s stock worth $60,767,000 after purchasing an additional 835,388 shares during the period. Institutional investors and hedge funds own 77.64% of the company’s stock.

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.