Docusign (NASDAQ:DOCU) Shares Gap Up on Better-Than-Expected Earnings

Shares of Docusign Inc. (NASDAQ:DOCU) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $76.24, but opened at $82.00. Docusign shares last traded at $80.91, with a volume of 3,022,975 shares changing hands.

The company reported $0.92 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.84 by $0.08. The company had revenue of $800.64 million for the quarter, compared to analyst estimates of $780.35 million. Docusign had a net margin of 9.08% and a return on equity of 13.98%. The business’s quarterly revenue was up 8.8% on a year-over-year basis. During the same quarter last year, the firm posted $0.97 earnings per share. Docusign has set its Q3 2026 guidance at EPS. FY 2026 guidance at EPS.

Docusign announced that its board has initiated a share repurchase plan on Thursday, June 5th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to reacquire up to 6.6% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on DOCU shares. Robert W. Baird lifted their price objective on shares of Docusign from $85.00 to $90.00 and gave the company a “neutral” rating in a research note on Friday. Citigroup lifted their price target on shares of Docusign from $110.00 to $115.00 and gave the stock a “buy” rating in a research note on Thursday. Royal Bank Of Canada boosted their target price on shares of Docusign from $90.00 to $95.00 and gave the company a “sector perform” rating in a research note on Friday. Needham & Company LLC reiterated a “hold” rating on shares of Docusign in a research note on Friday. Finally, JPMorgan Chase & Co. boosted their target price on shares of Docusign from $77.00 to $80.00 and gave the company a “neutral” rating in a research note on Friday. Four equities research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $93.14.

Insider Activity at Docusign

In related news, CEO Allan C. Thygesen sold 40,000 shares of the company’s stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $77.51, for a total value of $3,100,400.00. Following the completion of the sale, the chief executive officer owned 143,983 shares of the company’s stock, valued at $11,160,122.33. This represents a 21.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Robert Chatwani sold 22,875 shares of the company’s stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $74.79, for a total transaction of $1,710,821.25. Following the completion of the sale, the insider directly owned 72,126 shares of the company’s stock, valued at $5,394,303.54. The trade was a 24.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 78,552 shares of company stock worth $5,983,631. 1.01% of the stock is owned by company insiders.

Institutional Investors Weigh In On Docusign

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Centaurus Financial Inc. lifted its holdings in Docusign by 2.6% in the 2nd quarter. Centaurus Financial Inc. now owns 5,398 shares of the company’s stock valued at $420,000 after acquiring an additional 136 shares during the last quarter. Orion Porfolio Solutions LLC boosted its holdings in shares of Docusign by 50.8% in the second quarter. Orion Porfolio Solutions LLC now owns 23,832 shares of the company’s stock worth $1,856,000 after buying an additional 8,031 shares during the period. Neuberger Berman Group LLC boosted its holdings in shares of Docusign by 17.2% in the second quarter. Neuberger Berman Group LLC now owns 51,294 shares of the company’s stock worth $3,995,000 after buying an additional 7,511 shares during the period. B. Riley Wealth Advisors Inc. acquired a new position in shares of Docusign in the second quarter worth about $210,000. Finally, Marex Group plc acquired a new position in shares of Docusign in the second quarter worth about $386,000. 77.64% of the stock is owned by institutional investors and hedge funds.

Docusign Price Performance

The firm’s fifty day simple moving average is $75.53 and its 200 day simple moving average is $79.40. The company has a market capitalization of $16.14 billion, a price-to-earnings ratio of 60.05, a PEG ratio of 28.46 and a beta of 1.02.

Docusign Company Profile

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.