Docusign (NASDAQ:DOCU) Stock Rating Lowered by Citigroup

Docusign (NASDAQ:DOCU) was downgraded by research analysts at Citigroup from a “buy” rating to a “neutral” rating in a note issued to investors on Friday, Marketbeat.com reports. They presently have a $50.00 price objective on the stock, down from their prior price objective of $99.00. Citigroup’s price target would suggest a potential upside of 16.53% from the company’s current price.

Several other equities research analysts have also recently commented on the stock. Wells Fargo & Company dropped their target price on shares of Docusign from $75.00 to $60.00 and set an “equal weight” rating for the company in a research report on Wednesday, March 18th. Bank of America started coverage on Docusign in a research report on Tuesday, March 31st. They issued an “underperform” rating and a $52.00 price target on the stock. Royal Bank Of Canada lowered their price target on Docusign from $70.00 to $55.00 and set a “sector perform” rating for the company in a research report on Wednesday, March 18th. UBS Group decreased their price objective on shares of Docusign from $75.00 to $54.00 and set a “neutral” rating for the company in a report on Wednesday, March 18th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Docusign in a research report on Wednesday, January 21st. Four equities research analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $61.40.

Docusign Trading Down 5.8%

DOCU stock opened at $42.91 on Friday. The firm’s 50-day moving average price is $46.48 and its two-hundred day moving average price is $60.35. Docusign has a 12-month low of $40.16 and a 12-month high of $94.67. The stock has a market capitalization of $8.34 billion, a price-to-earnings ratio of 28.99, a PEG ratio of 1.64 and a beta of 0.99.

Docusign (NASDAQ:DOCU) last released its quarterly earnings data on Tuesday, March 17th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.95 by $0.06. The firm had revenue of $836.86 million for the quarter, compared to analysts’ expectations of $828.23 million. Docusign had a net margin of 9.60% and a return on equity of 16.86%. The company’s revenue for the quarter was up 7.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.86 earnings per share. Equities analysts predict that Docusign will post 1.17 EPS for the current year.

Docusign announced that its board has approved a share repurchase plan on Tuesday, March 17th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to reacquire up to 21% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board believes its shares are undervalued.

Insider Activity at Docusign

In related news, insider Robert Chatwani sold 16,696 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $48.10, for a total transaction of $803,077.60. Following the completion of the sale, the insider directly owned 72,458 shares in the company, valued at approximately $3,485,229.80. The trade was a 18.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider James P. Shaughnessy sold 12,000 shares of Docusign stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $46.83, for a total value of $561,960.00. Following the transaction, the insider owned 53,631 shares in the company, valued at $2,511,539.73. This trade represents a 18.28% 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. Insiders sold a total of 64,673 shares of company stock valued at $3,077,699 in the last three months. Corporate insiders own 1.01% of the company’s stock.

Institutional Investors Weigh In On Docusign

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Centaurus Financial Inc. raised its stake in Docusign by 2.6% during the 2nd quarter. Centaurus Financial Inc. now owns 5,398 shares of the company’s stock worth $420,000 after acquiring an additional 136 shares during the period. Mitchell & Pahl Private Wealth LLC boosted its stake in Docusign by 0.7% in the 3rd quarter. Mitchell & Pahl Private Wealth LLC now owns 21,422 shares of the company’s stock worth $1,544,000 after purchasing an additional 149 shares during the period. EverSource Wealth Advisors LLC boosted its stake in Docusign by 15.1% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 1,229 shares of the company’s stock worth $89,000 after purchasing an additional 161 shares during the period. Smartleaf Asset Management LLC lifted its stake in Docusign by 8.2% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,169 shares of the company’s stock worth $166,000 after purchasing an additional 165 shares in the last quarter. Finally, Americana Partners LLC lifted its stake in Docusign by 3.3% in the 3rd quarter. Americana Partners LLC now owns 5,467 shares of the company’s stock worth $394,000 after purchasing an additional 176 shares in the last quarter. Institutional investors own 77.64% of the company’s stock.

More Docusign News

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: DocuSign raised revenue guidance for Q1 FY2027 and FY2027 (Q1 revenue guidance $822M–$826M vs. $813.5M consensus; FY revenue ~$3.5B vs. $3.4B consensus), which supports near-term top-line momentum and reduces execution risk.
• Positive Sentiment: Multiple Zacks Research estimate upgrades — including higher FY2027, FY2028 and FY2029 EPS projections — signal improving analyst expectations for profitability and longer-term earnings power. Investors Heavily Search Docusign Inc. (DOCU): Here is What You Need to Know
• Neutral Sentiment: Recent coverage pieces frame DocuSign as a profitable, large-scale software business that has nonetheless seen a share-price reset — useful context for value vs. growth debate but not new company-specific data. Evaluating DocuSign (DOCU) After Recent Share Price Weakness And Growth Repricing
• Neutral Sentiment: Zacks and other outlets are highlighting heightened investor attention around DOCU ahead of earnings and guidance cycles — this can increase intraday volatility but doesn’t change fundamentals on its own. These 2 Computer and Technology Stocks Could Beat Earnings: Why They Should Be on Your Radar
• Negative Sentiment: Citi downgraded DOCU from Buy to Neutral and cut its price target sharply from $99 to $50, signaling reduced conviction on valuation and growth premium — this sell-side action is a direct negative catalyst for the stock. Citi Cuts Docusign to Neutral With a $50 Target: Has the E-Signature Pioneer Lost Its Edge?
• Negative Sentiment: DocuSign and peers are under pressure as AI-focused software names surge, prompting relative-performance selling and concerns over competitive displacement or faster re-rating of AI beneficiaries. DocuSign, Autodesk under increased pressure as AI players surge

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.