DocuSign Stock Receives "Hold" Rating from Needham & Company

DocuSign (NASDAQ:DOCU – Get Free Report) recently had its "hold" rating confirmed by analysts at Needham & Company LLC. This rating was communicated in a note to investors issued on a Friday, as reported by Benzinga.

Recently, other financial analysts have also provided insights regarding DocuSign's stock performance. Notably, the Royal Bank of Canada increased its target price for DocuSign shares from $52.00 to $57.00 while maintaining a "sector perform" rating in a report published on September 6th. Separately, JMP Securities raised their target price on the stock from $84.00 to $108.00 and assigned the company a "market outperform" rating on November 22nd. Additionally, JPMorgan Chase & Co. adjusted their target price for DocuSign from $50.00 to $70.00, assigning the stock an "underweight" rating in a report dated December 3rd. Wells Fargo & Company also lifted its price objective for DocuSign shares from $48.00 to $50.00, giving it an "underweight" rating in a report on September 6th.

In a more optimistic outlook, Jefferies Financial Group raised its target price from $80.00 to $95.00, designating the stock as a "buy" in their research note on December 3rd. Analyzing these ratings, it appears that three research analysts have recommended selling the stock, while seven have issued a hold rating, and three have suggested buying it. According to data from MarketBeat.com, DocuSign has an average rating of "Hold" with a consensus target price set at $92.45.

Current Stock Performance

DocuSign's stock opened at $106.99 on a recent Friday. Over the past year, the stock has fluctuated significantly, with a 52-week low of $44.34 and a high of $107.86. The company boasts a market capitalization of $21.72 billion, a price-to-earnings (PE) ratio of 22.06, a price-to-earnings-growth (PEG) ratio of 8.70, and a beta value of 0.92. The stock's 50-day moving average stands at $74.66, while its 200-day moving average is $62.01.

In its most recent quarterly earnings report released on September 5th, DocuSign announced earnings of $0.97 per share (EPS), surpassing analysts' expectations of $0.80 by $0.17. The company achieved a return on equity of 16.18% and maintained a net margin of 34.56%. DocuSign generated $736.03 million in revenue for the quarter, slightly higher than the anticipated $727.20 million. This marks a 7.0% increase in revenue compared to the same quarter last year. Analysts forecast that DocuSign will report an EPS of 1.03 for the current fiscal year.

Insider Transactions

On another note, recent insider trading activity has been reported. CEO Allan C. Thygesen sold 7,763 shares of DocuSign on December 2nd at an average price of $80.54, totaling $625,232.02. After this sale, the CEO's remaining shares amount to 100,062, valued at approximately $8,058,993.48, indicating a 7.20% drop in ownership. This transaction has been properly filed with the Securities and Exchange Commission. In a separate transaction, CFO Blake Jeffrey Grayson sold 14,036 shares on September 18th at an average price of $55.47, equaling a total transaction value of $778,576.92. Grayson now holds 87,611 shares, worth $4,859,782.17, reflecting a 13.81% decrease in their stake. In total, insiders have sold 69,596 shares valued at $4,441,529 over the past three months, and insider ownership equals 1.66% of the company's shares.

Institutional Ownership Insights

Several large institutional investors have also adjusted their positions in DocuSign. Inspire Investing LLC acquired a new stake in the company during the third quarter, valued at around $911,000. Charles Schwab Investment Management Inc. raised its stake by 1.2% in the same period and now owns 1,328,355 shares valued at $82,478,000 after adding 16,014 shares. Comerica Bank significantly boosted its stake by 228.8% in the first quarter, obtaining 28,901 shares valued at $1,721,000 after purchasing 20,110 additional shares. Furthermore, International Assets Investment Management LLC reported a significant increase in holdings, with a growth of 5,660.8% in the third quarter, now holding 438,914 shares valued at $27,252,000 after acquiring 431,295 shares. Lastly, Quantinno Capital Management LP increased its stake by 39.5% in the third quarter, now owning 201,546 shares worth $12,514,000. Overall, institutional and hedge fund ownership of DocuSign stands at 77.64%.

About DocuSign

DocuSign, Inc. specializes in providing electronic signature solutions both domestically and internationally. Their services include e-signature solutions that facilitate sending and signing agreements across multiple devices, Contract Lifecycle Management (CLM) that automates workflows for the entire agreement process, Document Generation for streamlining new and custom agreement creation, and Gen for Salesforce, allowing sales representatives to easily generate agreements directly from Salesforce.

DocuSign, Rating, Investors