Citigroup Raises DocuSign Price Target to $115.00

DocuSign (NASDAQ:DOCU) recently received a positive update from Citigroup, which has increased its price target for the company's shares from $113.00 to $115.00. In a research report released on Friday, the brokerage also maintained a "buy" rating on the stock. This new target suggests that there is potential for an upside of 33.31% based on the stock's previous closing price.

Analyst Ratings Summary

Other brokerage firms have also updated their ratings and price targets for DocuSign. JMP Securities reaffirmed their "market outperform" rating and set a price objective of $124.00 for the shares on January 7th. Conversely, UBS Group lowered their target from $100.00 to $90.00, listing the stock as "neutral." On the other hand, Robert W. Baird upped their price target from $59.00 to $100.00, giving it a ”neutral” rating. Meanwhile, Bank of America reduced their target from $112.00 to $98.00, also maintaining a "neutral" viewpoint. Piper Sandler increased their price target from $60.00 to $90.00, confirming a "neutral" rating too. Currently, two analysts have rated the stock as a sell, nine have given it a hold rating, and three have assigned it a buy rating. According to MarketBeat, the average rating for DocuSign shares is "Hold," and the consensus target price stands at $95.58.

DocuSign's Stock Performance

During trading hours on Friday, shares of DOCU were up by $11.56, reaching a new price of $86.26. The stock saw a trading volume of 8,989,861 shares, significantly higher than the average volume of 2,333,131 shares. The current 50-day moving average for DocuSign stock is $88.06, while the 200-day moving average is $79.04. With a market capitalization of $17.43 billion, the company has a price-to-earnings ratio of 17.81 and a PEG ratio of 6.94. Documenting its performance over the past year, the stock has seen a low of $48.70 and a high of $107.86.

Company Earnings Update

DocuSign last reported its quarterly earnings on March 13th. The company announced earnings per share (EPS) of $0.86, surpassing analysts' expectations of $0.84 by $0.02. The return on equity stood at 14.90% with a net margin of 34.73%. For the reported quarter, DocuSign generated revenues of $776.25 million, exceeding forecasts of $760.94 million, marking a 9.0% increase from the same quarter a year earlier. Analysts predict that DocuSign will achieve an EPS of 1.17 for the current year.

Insider Activity within the Company

In related news, Chief Financial Officer Blake Jeffrey Grayson sold 15,588 shares of DocuSign on December 18th at an average price of $97.78, totaling approximately $1.524 million. This sale decreased his ownership of the company's stock by 15.37%, leaving him with 85,851 shares worth around $8.39 million. Additionally, Director Teresa Briggs sold 534 shares on December 16th at an average price of $94.60, amounting to a total of $50,516.40. This transaction resulted in a 6.46% decrease in her holding, leaving her with 7,736 shares valued at approximately $731,825.60. In total, insiders sold 104,422 shares worth $9.66 million over the past three months, while insiders collectively own 1.66% of the company’s stock.

Institutional Ownership Trends

On the investment side, several institutional investors have adjusted their stakes in DocuSign recently. Toronto Dominion Bank boosted its stake by 30.3% in the third quarter, owning 26,159 shares valued at $1.62 million after acquiring an additional 6,081 shares. Similarly, Charles Schwab Investment Management increased its holdings by 1.2%, now owning 1,328,355 shares worth $82.48 million following an additional purchase of 16,014 shares. Other institutions like Quantinno Capital Management and Rhumbline Advisers also expanded their holdings in the third quarter. Currently, 77.64% of DocuSign’s shares are owned by institutional investors and hedge funds.

About DocuSign

DocuSign, Inc. is a leading electronic signature solution provider with operations in the United States and internationally. The company offers e-signature solutions that allow users to send and sign agreements on various devices. Additionally, they provide Contract Lifecycle Management (CLM) services, document generation, and integrations with platforms like Salesforce.

DocuSign, Citigroup, Finance