DocuSign (NASDAQ:DOCU) Issues Earnings Results, Beats Expectations By $0.09 EPS

DocuSign (NASDAQ:DOCU) posted its quarterly earnings data on Thursday. The company reported $0.90 earnings per share for the quarter, topping analysts’ consensus estimates of $0.81 by $0.09, Briefing.com reports. DocuSign had a net margin of 34.73% and a return on equity of 14.90%. The company had revenue of $763.65 million for the quarter, compared to analyst estimates of $748.79 million. During the same period in the prior year, the company posted $0.82 EPS. The firm’s revenue for the quarter was up 7.6% on a year-over-year basis. DocuSign updated its FY 2026 guidance to EPS and its Q2 2026 guidance to EPS.

DocuSign Price Performance

NASDAQ DOCU opened at $75.28 on Friday. The company has a market capitalization of $15.24 billion, a PE ratio of 15.52, a P/E/G ratio of 6.94 and a beta of 1.21. The company has a fifty day moving average of $82.08 and a two-hundred day moving average of $86.22. DocuSign has a 1 year low of $48.70 and a 1 year high of $107.86.

DocuSign declared that its board has initiated a stock repurchase plan on Thursday, June 5th that authorizes the company to repurchase $1.00 billion in shares. This repurchase authorization authorizes the company to reacquire up to 6.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. William Blair reissued an “outperform” rating on shares of DocuSign in a research report on Monday, April 21st. UBS Group dropped their target price on shares of DocuSign from $85.00 to $80.00 and set a “neutral” rating on the stock in a research note on Friday. Wedbush dropped their target price on shares of DocuSign from $100.00 to $85.00 and set a “neutral” rating on the stock in a research note on Friday. Morgan Stanley dropped their price objective on shares of DocuSign from $92.00 to $86.00 and set an “equal weight” rating on the stock in a research note on Friday. Finally, Hsbc Global Res upgraded shares of DocuSign from a “moderate sell” rating to a “hold” rating in a research note on Friday, April 11th. One research analyst has rated the stock with a sell rating, eleven have given a hold rating and four have issued a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $89.15.

Insider Buying and Selling

In other news, insider Robert Chatwani sold 15,706 shares of the stock in a transaction dated Wednesday, March 19th. The shares were sold at an average price of $83.19, for a total value of $1,306,582.14. Following the completion of the transaction, the insider now owns 76,842 shares in the company, valued at $6,392,485.98. This trade represents a 16.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Blake Jeffrey Grayson sold 16,111 shares of the stock in a transaction dated Wednesday, March 19th. The shares were sold at an average price of $83.20, for a total transaction of $1,340,435.20. Following the completion of the transaction, the chief financial officer now owns 93,960 shares of the company’s stock, valued at $7,817,472. This represents a 14.64% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 47,851 shares of company stock worth $3,912,239 in the last 90 days. Company insiders own 1.01% of the company’s stock.

Hedge Funds Weigh In On DocuSign

An institutional investor recently raised its position in DocuSign stock. NewEdge Advisors LLC lifted its position in shares of DocuSign, Inc. (NASDAQ:DOCU) by 36.4% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 9,202 shares of the company’s stock after buying an additional 2,457 shares during the quarter. NewEdge Advisors LLC’s holdings in DocuSign were worth $749,000 at the end of the most recent quarter. Institutional investors and hedge funds own 77.64% of the company’s stock.

About DocuSign

DocuSign, Inc provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.