DocuSign Receives Hold Rating from Needham & Company

DocuSign (NASDAQ:DOCU – Get Free Report) has had its "hold" rating reaffirmed by analysts at Needham & Company LLC, according to a note released to investors. This update was reported on Friday, highlighting the company's current position in the stock market.

Several other analysts have also provided insights regarding DocuSign's stock performance. The Royal Bank of Canada recently increased their target price for DocuSign shares from $52.00 to $57.00 while assigning a "sector perform" rating in a report dated September 6th. Similarly, JMP Securities raised their target price from $84.00 to $108.00 and awarded the company a "market outperform" rating in a report released on November 22nd. JPMorgan Chase & Co. adjusted their target from $50.00 to $70.00, although they assigned an "underweight" rating on December 3rd. Wells Fargo & Company also lifted their price target from $48.00 to $50.00 while maintaining an "underweight" rating in a report on September 6th. Moreover, Jefferies Financial Group raised their target price from $80.00 to $95.00, issuing a "buy" rating on December 3rd. In total, three analysts have rated the stock as a sell, seven have issued a hold rating, and three have categorized it as a buy. According to data from MarketBeat.com, DocuSign has an average consensus rating of "Hold" along with a target price of approximately $92.45.

Stock Performance Highlights

On Friday, shares of DocuSign opened at $106.99. Over the past year, the stock has seen fluctuations, reaching a low of $44.34 and a high of $107.86. The market capitalization of the company stands at approximately $21.72 billion, with a PE ratio of 22.06 and a price-to-earnings-growth ratio of 8.70. DocuSign has a beta of 0.92, indicating it is less volatile compared to the market. The company’s moving averages over the last 50 days stand at $74.66, while the 200-day moving average is at $62.01.

Recent Earnings Report

DocuSign recently released its quarterly earnings data on September 5th. The company reported earnings per share (EPS) of $0.97, surpassing the consensus estimate of $0.80 by $0.17. Additionally, the company had a return on equity of 16.18% and a net margin of 34.56%. Revenue for the quarter totaled $736.03 million, exceeding analyst expectations of $727.20 million, indicating a 7.0% increase compared to the same quarter last year. Analysts predict that DocuSign will report an average EPS of 1.03 for the current fiscal year.

Insider Transactions

Recently, some insiders of the company have made significant stock transactions. CEO Allan C. Thygesen sold 7,763 shares on December 2nd at an average price of $80.54, totaling approximately $625,232.02. This sale decreased his ownership in the firm to 100,062 shares, valued at $8,058,993.48. On the other hand, CFO Blake Jeffrey Grayson sold 14,036 shares on September 18th at an average price of $55.47, bringing in a total of $778,576.92. After this transaction, Grayson holds 87,611 shares, worth around $4,859,782.17. In the last three months, insiders have sold a total of 69,596 shares worth approximately $4,441,529. Currently, insiders hold 1.66% of the company’s stock.

Institutional Investors Update

In terms of institutional investment, several large investors have recently altered their stakes in DocuSign. Inspire Investing LLC established a new position in the company valued at about $911,000 during the third quarter. Charles Schwab Investment Management Inc. increased their holdings by 1.2% during the same quarter, owning a total of 1,328,355 shares worth roughly $82,478,000 after acquiring an additional 16,014 shares. Comerica Bank significantly boosted its stake by 228.8% in the first quarter, now holding 28,901 shares valued at $1,721,000. International Assets Investment Management LLC grew its holdings by an astonishing 5,660.8% during the third quarter, owning 438,914 shares worth $27,252,000. Lastly, Quantinno Capital Management LP increased their position by 39.5%, obtaining 201,546 shares valued at $12,514,000. As it stands, institutional investors own about 77.64% of DocuSign's outstanding shares.

About DocuSign

DocuSign, Inc. specializes in providing electronic signature solutions both in the United States and internationally. They offer various services, including e-signature solutions that facilitate the sending and signing of agreements across multiple devices, Contract Lifecycle Management (CLM), which automates the workflow for the entire agreement process, Document Generation for creating new customized agreements easily, and Gen for Salesforce, a tool that allows sales representatives to swiftly generate agreements within Salesforce.

DocuSign, Earnings, Investors