Docusign (NASDAQ:DOCU) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Docusign (NASDAQ:DOCU) posted its quarterly earnings data on Thursday. The company reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.09, FiscalAI reports. Docusign had a return on equity of 16.86% and a net margin of 9.60%.The business had revenue of $830.24 million during the quarter, compared to analyst estimates of $824.71 million.

Docusign Trading Down 2.8%

Shares of NASDAQ:DOCU traded down $1.46 on Thursday, reaching $50.94. The company had a trading volume of 6,638,406 shares, compared to its average volume of 4,332,681. Docusign has a 52-week low of $40.16 and a 52-week high of $94.67. The firm’s 50 day simple moving average is $47.64 and its 200-day simple moving average is $54.33. The firm has a market capitalization of $9.90 billion, a PE ratio of 34.42, a PEG ratio of 2.10 and a beta of 0.92.

Insiders Place Their Bets

In other news, CEO Allan C. Thygesen sold 26,250 shares of Docusign stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $47.78, for a total value of $1,254,225.00. Following the transaction, the chief executive officer directly owned 152,237 shares in the company, valued at approximately $7,273,883.86. This trade represents a 14.71% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Paula Hansen sold 6,000 shares of the firm’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $46.84, for a total value of $281,040.00. Following the completion of the sale, the executive directly owned 79,233 shares of the company’s stock, valued at $3,711,273.72. The trade was a 7.04% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 65,126 shares of company stock worth $3,107,875. Insiders own 0.59% of the company’s stock.

Institutional Trading of Docusign

A number of institutional investors have recently made changes to their positions in DOCU. Smartleaf Asset Management LLC boosted its holdings in shares of Docusign by 8.2% in the second quarter. Smartleaf Asset Management LLC now owns 2,169 shares of the company’s stock valued at $166,000 after acquiring an additional 165 shares in the last quarter. Centaurus Financial Inc. boosted its holdings in shares of Docusign by 3.4% in the third quarter. Centaurus Financial Inc. now owns 5,582 shares of the company’s stock valued at $402,000 after acquiring an additional 184 shares in the last quarter. Itau Unibanco Holding S.A. boosted its holdings in shares of Docusign by 60.6% in the fourth quarter. Itau Unibanco Holding S.A. now owns 864 shares of the company’s stock valued at $59,000 after acquiring an additional 326 shares in the last quarter. Hilltop Holdings Inc. boosted its holdings in shares of Docusign by 2.2% in the third quarter. Hilltop Holdings Inc. now owns 17,028 shares of the company’s stock valued at $1,228,000 after acquiring an additional 363 shares in the last quarter. Finally, Vise Technologies Inc. boosted its holdings in shares of Docusign by 12.6% in the fourth quarter. Vise Technologies Inc. now owns 3,501 shares of the company’s stock valued at $239,000 after acquiring an additional 393 shares in the last quarter. Institutional investors and hedge funds own 77.64% of the company’s stock.

Docusign declared that its Board of Directors has initiated a share buyback plan on Tuesday, March 17th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 21% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Royal Bank Of Canada reduced their price target on Docusign from $70.00 to $55.00 and set a “sector perform” rating on the stock in a report on Wednesday, March 18th. Morgan Stanley reduced their price target on Docusign from $90.00 to $69.00 and set an “equal weight” rating on the stock in a report on Wednesday, March 18th. JPMorgan Chase & Co. reduced their price target on Docusign from $78.00 to $65.00 and set a “neutral” rating on the stock in a report on Wednesday, March 18th. Needham & Company LLC reiterated a “hold” rating on shares of Docusign in a report on Tuesday, March 10th. Finally, Robert W. Baird reduced their price target on Docusign from $75.00 to $55.00 and set a “neutral” rating on the stock in a report on Wednesday, March 18th. Three analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $61.40.

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.