Wall Street Zen Upgrades Docusign (NASDAQ:DOCU) to “Strong-Buy”

Docusign (NASDAQ:DOCU) was upgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “strong-buy” rating in a research report issued to clients and investors on Saturday.

Other equities analysts also recently issued reports about the stock. Piper Sandler decreased their price target on shares of Docusign from $75.00 to $52.00 and set a “neutral” rating on the stock in a research note on Wednesday, March 18th. Wells Fargo & Company decreased their target price on shares of Docusign from $60.00 to $55.00 and set an “equal weight” rating on the stock in a research report on Friday, June 5th. Jefferies Financial Group increased their target price on shares of Docusign from $45.00 to $50.00 and gave the stock a “hold” rating in a research report on Friday, June 5th. Wedbush decreased their target price on shares of Docusign from $60.00 to $58.00 and set a “neutral” rating on the stock in a research report on Friday, June 5th. Finally, HSBC set a $53.00 target price on shares of Docusign in a research report on Friday, February 13th. Three investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Docusign has an average rating of “Hold” and a consensus target price of $60.27.

Docusign Stock Performance

Shares of DOCU opened at $45.03 on Friday. Docusign has a 52 week low of $40.16 and a 52 week high of $86.65. The firm has a market cap of $8.60 billion, a P/E ratio of 29.24, a price-to-earnings-growth ratio of 1.35 and a beta of 0.92. The firm’s 50-day simple moving average is $47.56 and its 200 day simple moving average is $53.47.

Docusign (NASDAQ:DOCU) last announced its quarterly earnings results on Thursday, June 4th. The company reported $1.09 EPS for the quarter, beating analysts’ consensus estimates of $0.99 by $0.10. Docusign had a net margin of 9.59% and a return on equity of 17.48%. The business had revenue of $830.24 million for the quarter, compared to analyst estimates of $824.71 million. During the same quarter in the prior year, the business earned $0.90 EPS. Docusign’s quarterly revenue was up 8.7% on a year-over-year basis. As a group, equities analysts forecast that Docusign will post 1.97 earnings per share for the current year.

Docusign announced that its Board of Directors has authorized a share buyback program on Tuesday, March 17th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to reacquire up to 21% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s management believes its stock is undervalued.

Insider Activity at Docusign

In other news, Director Mary Agnes Wilderotter sold 3,000 shares of the company’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $48.15, for a total transaction of $144,450.00. Following the completion of the sale, the director owned 59,803 shares of the company’s stock, valued at approximately $2,879,514.45. This represents a 4.78% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider James P. Shaughnessy sold 12,000 shares of the company’s stock in a transaction that occurred 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 sale, the insider directly owned 53,631 shares of the company’s stock, valued at approximately $2,511,539.73. This trade represents a 18.28% 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. Insiders have sold a total of 65,489 shares of company stock worth $3,125,814 in the last 90 days. Corporate insiders own 0.59% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Parallel Advisors LLC lifted its holdings in shares of Docusign by 113.2% in the first quarter. Parallel Advisors LLC now owns 4,568 shares of the company’s stock worth $217,000 after acquiring an additional 2,425 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Docusign by 3.1% in the first quarter. NewEdge Advisors LLC now owns 11,024 shares of the company’s stock worth $523,000 after acquiring an additional 328 shares during the last quarter. Caerus Investment Advisors LLC bought a new position in shares of Docusign in the first quarter worth about $436,000. Glenmede Trust Co. NA lifted its holdings in shares of Docusign by 11.0% in the first quarter. Glenmede Trust Co. NA now owns 512,593 shares of the company’s stock worth $24,302,000 after acquiring an additional 50,855 shares during the last quarter. Finally, Essential Partners LLC lifted its holdings in shares of Docusign by 520.4% in the first quarter. Essential Partners LLC now owns 6,446 shares of the company’s stock worth $306,000 after acquiring an additional 5,407 shares during the last quarter. Institutional investors own 77.64% of the company’s stock.

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.