Docusign (NASDAQ:DOCU) Stock Price Expected to Rise, Bank of America Analyst Says

Docusign (NASDAQ:DOCU) had its price target lifted by Bank of America from $58.00 to $64.00 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has an “underperform” rating on the stock. Bank of America‘s price target would indicate a potential downside of 5.93% from the stock’s previous close.

Several other equities analysts have also issued reports on the stock. Weiss Ratings raised shares of Docusign from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 25th. UBS Group increased their target price on Docusign from $54.00 to $70.00 and gave the company a “neutral” rating in a research report on Friday. Wedbush dropped their target price on Docusign from $60.00 to $58.00 and set a “neutral” rating on the stock in a research report on Friday, June 5th. Wells Fargo & Company boosted their price target on Docusign from $55.00 to $60.00 and gave the stock an “equal weight” rating in a research report on Friday. Finally, Wall Street Zen cut Docusign from a “strong-buy” rating to a “buy” rating in a research note on Sunday, August 2nd. Three equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $66.13.

Docusign Stock Up 3.1%

DOCU stock traded up $2.07 during trading on Friday, hitting $68.04. The company had a trading volume of 3,972,474 shares, compared to its average volume of 4,102,579. The firm has a market capitalization of $12.99 billion, a P/E ratio of 44.03, a PEG ratio of 2.32 and a beta of 0.90. Docusign has a 52-week low of $40.16 and a 52-week high of $86.65. The company has a 50 day simple moving average of $55.24 and a 200-day simple moving average of $49.74.

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 business had revenue of $875.75 million for the quarter, compared to the consensus estimate of $867.22 million. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The company’s revenue for the quarter was up 9.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.30 EPS. Sell-side analysts forecast that Docusign will post 2.03 earnings per share for the current year.

Insiders Place Their Bets

In other news, CRO Paula Hansen sold 6,000 shares of the company’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $45.54, for a total transaction of $273,240.00. Following the transaction, the executive owned 89,972 shares in the company, valued at $4,097,324.88. This represents a 6.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Blake Grayson sold 15,000 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $60.00, for a total transaction of $900,000.00. Following the completion of the transaction, the chief financial officer directly owned 126,429 shares of the company’s stock, valued at $7,585,740. The trade was a 10.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 90,602 shares of company stock valued at $4,323,749. 0.59% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of DOCU. Modus Advisors LLC purchased a new stake in shares of Docusign during the fourth quarter valued at $27,000. Cary Street Partners Investment Advisory LLC lifted its position in Docusign by 309.5% during the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 561 shares of the company’s stock worth $38,000 after acquiring an additional 424 shares during the period. Basepoint Wealth LLC acquired a new stake in Docusign during the 4th quarter worth about $39,000. WealthCollab LLC grew its stake in Docusign by 372.4% during the 1st quarter. WealthCollab LLC now owns 855 shares of the company’s stock valued at $41,000 after purchasing an additional 674 shares during the last quarter. Finally, Virtus Advisers LLC acquired a new position in shares of Docusign in the second quarter valued at about $47,000. Institutional investors and hedge funds own 77.64% of the company’s stock.

Key Stories Impacting Docusign

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign reported fiscal Q2 revenue of $875.7 million, up 9.4% year over year and above the $867.2 million consensus estimate. Adjusted EPS of $1.16 also exceeded expectations of approximately $1.09, providing evidence of solid operating momentum. DocuSign Announces Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: The company raised its fiscal-year revenue, annual recurring revenue and Intelligent Agreement Management outlook, citing growing demand for AI-powered contract tools. Fiscal Q3 revenue guidance of $886 million to $890 million is broadly in line with analyst expectations, reducing near-term execution concerns. DocuSign raises annual forecast as AI-powered contract tools gain traction
• Positive Sentiment: DocuSign plans to make its Model Context Protocol server available to every AI agent on September 30. Wider access could strengthen the company’s position as an “agreement layer” connecting contracts with enterprise AI workflows and support longer-term growth. Docusign Agreement Layer for the Agentic Enterprise Coming to Every Agent
• Positive Sentiment: Analysts responded favorably: Citizens JMP reiterated an “outperform” rating with an $86 price target, while UBS raised its target to $70 from $54. Morgan Stanley and BTIG also reportedly increased their targets, supporting investor confidence in the AI strategy.
• Neutral Sentiment: Technical momentum remains constructive, with DOCU forming a “golden cross” and trading well above its 200-day moving average. However, the shares’ strong recent run may increase sensitivity to profit-taking after earnings.
• Negative Sentiment: Despite the earnings beat and higher guidance, the stock reversed some early gains during Friday trading. UBS maintained a “neutral” rating and Needham reiterated “hold,” suggesting some investors view the current valuation and future AI benefits as largely reflected in the share price. DocuSign Stock Reverses Early Gains Despite Q2 Beat

About Docusign

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.