Wedbush Has Lowered Expectations for Docusign (NASDAQ:DOCU) Stock Price

Docusign (NASDAQ:DOCU) had its price objective decreased by stock analysts at Wedbush from $60.00 to $58.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a “neutral” rating on the stock. Wedbush’s price target points to a potential upside of 22.43% from the company’s previous close.

Several other brokerages also recently weighed in on DOCU. Needham & Company LLC restated a “hold” rating on shares of Docusign in a research note on Friday. Citigroup reiterated a “neutral” rating on shares of Docusign in a report on Friday. Morgan Stanley reduced their price objective on Docusign from $90.00 to $69.00 and set an “equal weight” rating for the company in a research report on Wednesday, March 18th. Bank of America assumed coverage on shares of Docusign in a research note on Tuesday, March 31st. They issued an “underperform” rating and a $52.00 price objective on the stock. Finally, Royal Bank Of Canada dropped their target price on shares of Docusign from $70.00 to $55.00 and set a “sector perform” rating on the stock in a research report on Wednesday, March 18th. Three equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Docusign has an average rating of “Hold” and a consensus price target of $59.27.

Docusign Trading Down 7.0%

NASDAQ:DOCU opened at $47.37 on Friday. The firm has a market capitalization of $9.20 billion, a PE ratio of 31.83, a PEG ratio of 2.00 and a beta of 0.92. Docusign has a 1 year low of $40.16 and a 1 year high of $86.65. The firm’s fifty day simple moving average is $47.74 and its 200 day simple moving average is $54.21.

Docusign (NASDAQ:DOCU) last released its quarterly earnings results on Thursday, June 4th. The company reported $1.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.00 by $0.09. The company had revenue of $830.24 million during the quarter, compared to analysts’ expectations of $824.71 million. Docusign had a net margin of 9.60% and a return on equity of 16.86%. The business’s quarterly revenue was up 8.7% compared to the same quarter last year. During the same period in the prior year, the company earned $0.90 earnings per share. As a group, analysts anticipate that Docusign will post 1.76 EPS for the current fiscal year.

Docusign declared that its Board of Directors has initiated a share buyback plan on Tuesday, March 17th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 21% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other Docusign news, CEO Allan C. Thygesen sold 26,250 shares of the business’s stock in a transaction dated Wednesday, April 1st. The shares were 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 $7,273,883.86. The trade was a 14.71% decrease in their ownership of the stock. The transaction was disclosed in a 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 James P. Shaughnessy sold 12,000 shares of the company’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $46.83, for a total transaction of $561,960.00. Following 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 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 65,126 shares of company stock worth $3,107,875 in the last quarter. 0.59% of the stock is owned by corporate insiders.

Institutional Trading of Docusign

Hedge funds have recently modified their holdings of the company. Central Pacific Bank Trust Division acquired a new stake in shares of Docusign in the fourth quarter valued at $25,000. Modus Advisors LLC bought a new position in shares of Docusign in the fourth quarter worth about $27,000. Torren Management LLC acquired a new position in shares of Docusign during the fourth quarter worth approximately $28,000. Aventura Private Wealth LLC acquired a new position in shares of Docusign during the fourth quarter worth approximately $30,000. Finally, True Wealth Design LLC grew its stake in shares of Docusign by 105.2% during the fourth quarter. True Wealth Design LLC now owns 433 shares of the company’s stock valued at $30,000 after purchasing an additional 222 shares during the last quarter. 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 first-quarter EPS of $1.09, ahead of the $1.00 consensus, while revenue of $830.2 million also beat estimates and rose 8.7% year over year. DocuSign earnings report and conference call
• Positive Sentiment: The company nudged full-year revenue guidance higher to about $3.49 billion-$3.50 billion and highlighted growing demand for its AI-native Intelligent Agreement Management platform, which could support longer-term growth. WSJ revenue outlook article
• Positive Sentiment: Management also pointed to new AI-related product momentum, including ChatGPT and Codex integrations, plus record buybacks, which may help investor sentiment around capital returns and product innovation. DocuSign valuation check and AI agreement management launch
• Neutral Sentiment: BTIG Research lowered its price target on DocuSign to $60 from $70, but kept a Buy rating, suggesting optimism remains even after trimming near-term valuation expectations. BTIG price target update
• Neutral Sentiment: Needham reaffirmed its Hold rating, signaling that analysts see the quarter as solid but not yet enough to justify a more bullish stance. Needham rating reaffirmation
• Negative Sentiment: Despite the beat-and-raise quarter, shares have been under pressure because guidance did not significantly clear Wall Street expectations, and investors appeared disappointed by the lack of upside surprise in the outlook. DocuSign beats estimates but shares slip on muted guidance

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.