Docusign Inc. (NASDAQ:DOCU) Receives Average Recommendation of “Hold” from Brokerages

Shares of Docusign Inc. (NASDAQ:DOCU) have received an average rating of “Hold” from the nineteen brokerages that are covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, fifteen have given a hold rating and three have given a buy rating to the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $67.3333.

Several analysts have commented on DOCU shares. Royal Bank Of Canada upped their price objective on Docusign from $55.00 to $70.00 and gave the company a “sector perform” rating in a research note on Friday. Wedbush cut their price target on Docusign from $60.00 to $58.00 and set a “neutral” rating for the company in a research note on Friday, June 5th. Evercore set a $65.00 price target on Docusign in a report on Friday. Weiss Ratings raised Docusign from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 25th. Finally, Citigroup lifted their price objective on shares of Docusign from $54.00 to $72.00 and gave the company a “neutral” rating in a research report on Friday.

Insider Buying and Selling

In related news, CRO Paula Hansen sold 6,000 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $45.54, for a total transaction of $273,240.00. Following the completion of the transaction, the executive directly owned 89,972 shares of the company’s stock, valued at $4,097,324.88. This represents a 6.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider James P. Shaughnessy sold 12,000 shares of the firm’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $45.54, for a total transaction of $546,480.00. Following the completion of the sale, the insider owned 52,815 shares of the company’s stock, valued at approximately $2,405,195.10. The trade was a 18.51% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 90,602 shares of company stock worth $4,323,749. 0.59% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Docusign

Large investors have recently modified their holdings of the business. Bank of America Corp DE increased its holdings in shares of Docusign by 23.3% in the 1st quarter. Bank of America Corp DE now owns 1,193,163 shares of the company’s stock valued at $56,568,000 after purchasing an additional 225,801 shares in the last quarter. Capital World Investors boosted its holdings in Docusign by 38.1% during the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company’s stock worth $397,801,000 after buying an additional 1,603,900 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in Docusign by 247.5% during the second quarter. Assenagon Asset Management S.A. now owns 349,038 shares of the company’s stock worth $15,504,000 after buying an additional 248,597 shares in the last quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund acquired a new position in Docusign during the fourth quarter worth about $6,897,000. Finally, Los Angeles Capital Management LLC acquired a new position in Docusign during the fourth quarter worth about $1,750,000. 77.64% of the stock is owned by hedge funds and other institutional investors.

Docusign News Roundup

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Quarterly results exceeded expectations. DocuSign reported revenue of $875.7 million, up 9.4% year over year and ahead of the $867.2 million consensus estimate. Adjusted earnings of $1.16 per share also surpassed expectations of approximately $1.08-$1.09. DocuSign Announces Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Management raised its fiscal 2027 outlook. The company increased guidance for revenue, annual recurring revenue (ARR) and the percentage of ARR generated by its Intelligent Agreement Management (IAM) platform. Third-quarter revenue guidance of $886 million-$890 million was broadly in line with analyst expectations. DocuSign raises annual forecast as AI-powered contract tools gain traction
• Positive Sentiment: AI and IAM adoption are becoming key growth drivers. New AI-powered contract tools are gaining traction, while stronger retention and IAM momentum suggest DocuSign is broadening its addressable market beyond electronic signatures. CFO Blake Grayson said strengthening partnerships supported the higher ARR forecast.
• Positive Sentiment: DocuSign is opening its Model Context Protocol server to all AI agents globally on September 30. The initiative could make DocuSign’s agreement technology more accessible across agentic enterprise software ecosystems and support future platform usage. DocuSign Agreement Layer for the Agentic Enterprise Coming to Every Agent
• Positive Sentiment: Several analysts raised their price targets following the earnings report, including UBS to $70, BTIG to $75 and Citizens JMP to $86. Morgan Stanley also reportedly increased its target, while technical traders noted a bullish “golden cross.”
• Neutral Sentiment: Analyst opinion remains divided. Bank of America raised its target to $64 but retained an “underperform” rating; UBS maintained “neutral,” and Needham reiterated “hold.” This suggests some analysts view the recent rally as having already priced in much of the improvement.
• Negative Sentiment: The stock reversed some early gains despite the earnings beat. With shares trading well above their 200-day average and at a relatively elevated earnings multiple, investors may be concerned that expectations for AI-driven growth are becoming demanding.

Docusign Stock Performance

Shares of NASDAQ:DOCU opened at $68.41 on Wednesday. The company has a 50-day simple moving average of $55.70 and a 200-day simple moving average of $49.90. Docusign has a one year low of $40.16 and a one year high of $86.65. The stock has a market capitalization of $13.06 billion, a price-to-earnings ratio of 41.71, a PEG ratio of 2.43 and a beta of 0.90.

Docusign (NASDAQ:DOCU) last announced its earnings results on Thursday, September 3rd. The company reported $1.16 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.07. Docusign had a net margin of 9.82% and a return on equity of 18.29%. The business had revenue of $875.75 million during the quarter, compared to the consensus estimate of $867.22 million. During the same quarter in the prior year, the firm earned $0.30 earnings per share. The business’s quarterly revenue was up 9.4% compared to the same quarter last year. As a group, research analysts forecast that Docusign will post 2.03 EPS for the current fiscal year.

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.