Docusign’s (DOCU) Hold Rating Reiterated at Needham & Company LLC

Needham & Company LLC reiterated their hold rating on shares of Docusign (NASDAQ:DOCU) in a report published on Friday, MarketBeat Ratings reports.

Other equities analysts also recently issued reports about the company. Wall Street Zen downgraded Docusign from a “strong-buy” rating to a “buy” rating in a research note on Sunday, August 2nd. Wedbush cut their price objective on Docusign from $60.00 to $58.00 and set a “neutral” rating on the stock in a research note on Friday, June 5th. UBS Group set a $60.00 target price on Docusign in a report on Friday, June 5th. Citigroup reiterated a “market outperform” rating on shares of Docusign in a research report on Tuesday, August 18th. Finally, Citizens Jmp reiterated a “market outperform” rating and issued a $86.00 price target on shares of Docusign in a report on Tuesday, August 18th. Three investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $67.33.

Docusign Price Performance

NASDAQ DOCU opened at $68.41 on Friday. The company has a market capitalization of $13.06 billion, a price-to-earnings ratio of 41.71, a price-to-earnings-growth ratio of 2.43 and a beta of 0.90. Docusign has a 12 month low of $40.16 and a 12 month high of $86.65. The company’s fifty day moving average price is $55.70 and its two-hundred day moving average price is $49.90.

Docusign (NASDAQ:DOCU) last released 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. The company had revenue of $875.75 million during the quarter, compared to the consensus estimate of $867.22 million. Docusign had a net margin of 9.82% and a return on equity of 18.29%. The company’s revenue was up 9.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.30 EPS. As a group, analysts anticipate that Docusign will post 2.03 EPS for the current year.

Insider Buying and Selling at Docusign

In other news, CRO Paula Hansen sold 6,000 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was 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 approximately $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 Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Blake Grayson sold 15,000 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $60.00, for a total value of $900,000.00. Following the sale, the chief financial officer owned 126,429 shares in the company, valued at $7,585,740. The trade was a 10.61% decrease in their ownership of the stock. 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. Over the last quarter, insiders have sold 90,602 shares of company stock worth $4,323,749. 0.59% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DOCU. Corient Private Wealth LP grew its stake in Docusign by 21.0% during the 2nd quarter. Corient Private Wealth LP now owns 287,386 shares of the company’s stock worth $12,766,000 after buying an additional 49,898 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Docusign in the second quarter worth $3,247,000. California State Teachers Retirement System lifted its stake in Docusign by 4,016.6% in the second quarter. California State Teachers Retirement System now owns 9,960,652 shares of the company’s stock valued at $442,452,000 after buying an additional 9,718,686 shares during the last quarter. Ameritas Advisory Services LLC lifted its stake in Docusign by 225.5% in the second quarter. Ameritas Advisory Services LLC now owns 25,109 shares of the company’s stock valued at $1,115,000 after buying an additional 17,395 shares during the last quarter. Finally, HB Wealth Management LLC boosted its holdings in shares of Docusign by 30.0% during the second quarter. HB Wealth Management LLC now owns 11,632 shares of the company’s stock valued at $517,000 after acquiring an additional 2,687 shares during the period. Institutional investors and hedge funds own 77.64% of the company’s stock.

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.

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.