Docusign’s (DOCU) Hold Rating Reaffirmed at Needham & Company LLC

Docusign (NASDAQ:DOCU)‘s stock had its “hold” rating restated by investment analysts at Needham & Company LLC in a note issued to investors on Friday,Benzinga reports.

Several other research analysts also recently weighed in on the company. Robert W. Baird cut their price target on Docusign from $75.00 to $55.00 and set a “neutral” rating for the company in a report on Wednesday, March 18th. BTIG Research reiterated a “buy” rating and issued a $70.00 price target on shares of Docusign in a report on Wednesday, March 18th. UBS Group cut their price target on Docusign from $75.00 to $54.00 and set a “neutral” rating for the company in a report on Wednesday, March 18th. Royal Bank Of Canada cut their price target on Docusign from $70.00 to $55.00 and set a “sector perform” rating for the company in a report on Wednesday, March 18th. Finally, Piper Sandler dropped their price objective on shares of Docusign from $75.00 to $52.00 and set a “neutral” rating for the company in a research note on Wednesday, March 18th. Three research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Docusign presently has an average rating of “Hold” and a consensus target price of $61.07.

Docusign Trading Down 2.8%

Shares of DOCU stock opened at $50.94 on Friday. The firm has a 50-day moving average price of $47.74 and a 200 day moving average price of $54.21. Docusign has a twelve month low of $40.16 and a twelve month high of $94.67. The company has a market capitalization of $9.90 billion, a price-to-earnings ratio of 34.42, a PEG ratio of 2.00 and a beta of 0.92.

Docusign (NASDAQ:DOCU) last announced its earnings results on Thursday, June 4th. The company reported $1.09 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.09. Docusign had a net margin of 9.60% and a return on equity of 16.86%. The firm had revenue of $830.24 million during the quarter, compared to the consensus estimate of $824.71 million. During the same quarter in the previous year, the company posted $0.90 EPS. The firm’s revenue for the quarter was up 8.7% on a year-over-year basis. As a group, research analysts predict that Docusign will post 1.76 earnings per share for the current year.

Docusign announced that its board has approved a share repurchase program on Tuesday, March 17th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to purchase up to 21% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Docusign

In other news, insider James P. Shaughnessy sold 12,000 shares of the company’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $46.83, for a total transaction of $561,960.00. Following the completion of the sale, the insider directly owned 53,631 shares in the company, valued at $2,511,539.73. This represents a 18.28% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Allan C. Thygesen sold 26,250 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $47.78, for a total transaction of $1,254,225.00. Following the sale, the chief executive officer directly owned 152,237 shares of the company’s stock, valued at approximately $7,273,883.86. This trade represents a 14.71% decrease in their position. 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. Over the last quarter, insiders sold 65,126 shares of company stock worth $3,107,875. 0.59% of the stock is currently owned by company insiders.

Institutional Trading of Docusign

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. increased its position in Docusign by 1.1% during the 3rd quarter. Vanguard Group Inc. now owns 21,625,551 shares of the company’s stock worth $1,558,986,000 after purchasing an additional 225,525 shares in the last quarter. State Street Corp increased its position in Docusign by 0.9% during the 4th quarter. State Street Corp now owns 8,193,805 shares of the company’s stock worth $560,456,000 after purchasing an additional 77,008 shares in the last quarter. 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 worth $397,801,000 after purchasing an additional 1,603,900 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Docusign by 76.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 5,285,128 shares of the company’s stock valued at $250,568,000 after purchasing an additional 2,283,996 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in Docusign by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company’s stock valued at $278,665,000 after purchasing an additional 18,873 shares in the last quarter. Institutional investors and hedge funds own 77.64% of the company’s stock.

More Docusign News

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign beat Q1 estimates, posting adjusted EPS of $1.09 versus $1.00 expected and revenue of about $830.2 million versus $824.7 million forecast, with sales up 8.7%-9% year over year. DocuSign (DOCU) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised its revenue outlook for fiscal 2027 and said demand is improving for its AI-powered Intelligent Agreement Management platform, which supports the growth story. DocuSign Nudges Revenue Outlook Higher After First-Quarter Profit Rises
• Positive Sentiment: Investors are also encouraged by new AI-related product integrations, including ChatGPT and Codex, which could broaden adoption of DocuSign’s platform. DocuSign (DOCU) Valuation Check After Q1 Beat And New AI Agreement Management Launch
• Neutral Sentiment: DocuSign also highlighted record stock buybacks and continued product launches, but these items appear secondary to the company’s main earnings and guidance narrative. Docusign Inc (DOCU) Q1 2027 Earnings Call Highlights
• Negative Sentiment: Despite the beat, the stock fell in premarket/after-hours trading because guidance did not offer much upside beyond Wall Street expectations, leaving some investors disappointed. DocuSign Tops First-Quarter Forecasts, but Soft Outlook Weighs on Shares (DOCU)

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.