DocuSign's Shares Rated as 'Reduce' by HSBC

HSBC has reiterated a "reduce" rating on DocuSign (NASDAQ:DOCU) shares in a report released to investors on Friday. This re-evaluation reflects the bank's cautious outlook on the stock's potential performance.

Other Analyst Ratings and Price Targets

Several other financial institutions have also shared their insights regarding DocuSign's stock. The Royal Bank of Canada has given DocuSign a "sector perform" rating, increasing its price target from $57.00 to $90.00. Meanwhile, Bank of America raised its price target to $68.00 from $60.00, maintaining a "neutral" rating.

Wells Fargo has similarly increased its price target on DocuSign, moving it up from $50.00 to $70.00 with an "underweight" rating, while JPMorgan Chase & Co. has set its price target at $70.00 as well. In contrast, Morgan Stanley's price target for DocuSign jumped from $62.00 to $97.00, with an "equal weight" rating.

Currently, three analysts have assigned a sell rating for the stock, while seven recommend holding it, and three analysts suggest buying it. Overall, the average rating for the company is "Hold," with a consensus price target at $92.45, according to MarketBeat data.

Stock Performance Overview

On Friday, shares of DocuSign traded at $105.88, up $22.20 during mid-day trading. Approximately 16,621,148 shares exchanged hands, vastly surpassing its average trading volume of 2,934,783. The stock's 50-day moving average stands at $73.75, whereas the 200-day moving average is $61.68. DocuSign has a market capitalization of $21.49 billion, a P/E ratio of 22.51, and a price-to-earnings-growth ratio of 8.33.

Over the past year, DocuSign's stock has seen a low of $44.34 and a high of $107.86.

Recent Earnings Reports

DocuSign recently reported its quarterly earnings results on September 5. The company posted earnings of $0.97 per share, exceeding expectations of $0.80 by $0.17. The total revenue for the quarter reached $736.03 million, slightly above the anticipated $727.20 million. This reflects a year-over-year revenue growth of 7.0%. In the previous year's same quarter, DocuSign had earnings of $0.09 per share. Analysts predict DocuSign will achieve earnings of 1.03 EPS for the current fiscal year.

Insider Transactions

In related news, CEO Allan C. Thygesen sold 7,648 shares of DocuSign stock on October 1, at an average price of $62.47, totaling a value of about $477,770.56. Following this sale, he retained 115,589 shares valued at approximately $7.22 million. Director Teresa Briggs also sold 534 shares on September 16 at an average price of $56.56, generating a total of $30,203.04. Post-transaction, she owns about 7,202 shares worth $407,345.12. Over the last quarter, insiders sold 69,596 shares worth about $4.44 million, while corporate insiders currently own 1.66% of the company’s shares.

Institutional Investor Activity

DocuSign has experienced recent changes in its institutional investment. State Street Corp has increased its holdings by 2.3% in the third quarter, now owning over 5.37 million shares worth approximately $333.6 million. American Century Companies Inc. has boosted its stake by 1.9%, now holding 4.1 million shares valued at about $219.3 million. Renaissance Technologies LLC has raised its holdings by 18.3%, while Pacer Advisors Inc. has significantly increased its position in DocuSign by 77.9% during the second quarter.

Institutional investors now own 77.64% of DocuSign’s stock, highlighting strong institutional interest.

About DocuSign

DocuSign, Inc. is a provider of electronic signature solutions, enabling users to send and sign agreements across various devices. The company also offers Contract Lifecycle Management (CLM) to automate workflows throughout the agreement process, Document Generation to streamline creating custom agreements, and Gen for Salesforce for automatic agreement generation within the Salesforce platform.

rating, stocks, trading