Morgan Stanley Has Lowered Expectations for Docusign (NASDAQ:DOCU) Stock Price

Docusign (NASDAQ:DOCU) had its target price dropped by stock analysts at Morgan Stanley from $90.00 to $69.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Morgan Stanley’s target price suggests a potential upside of 41.39% from the stock’s current price.

DOCU has been the topic of a number of other reports. Citizens Jmp cut their price objective on shares of Docusign from $124.00 to $86.00 and set a “market outperform” rating on the stock in a research note on Wednesday. Robert W. Baird lowered their target price on shares of Docusign from $75.00 to $55.00 and set a “neutral” rating on the stock in a research note on Wednesday. BTIG Research restated a “buy” rating and set a $70.00 price target on shares of Docusign in a research report on Wednesday. HSBC set a $53.00 price target on shares of Docusign in a research note on Friday, February 13th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Docusign in a research note on Wednesday, January 21st. Five investment analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Docusign has an average rating of “Hold” and an average target price of $70.13.

Docusign Stock Performance

Shares of DOCU traded up $1.26 during mid-day trading on Wednesday, reaching $48.80. 5,716,426 shares of the company’s stock traded hands, compared to its average volume of 4,812,542. The business’s 50-day moving average price is $51.11 and its 200-day moving average price is $64.46. The stock has a market capitalization of $9.77 billion, a P/E ratio of 34.43, a price-to-earnings-growth ratio of 2.04 and a beta of 1.03. Docusign has a 12 month low of $40.16 and a 12 month high of $94.67.

Docusign (NASDAQ:DOCU) last posted its earnings results on Tuesday, March 17th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.95 by $0.06. Docusign had a return on equity of 15.02% and a net margin of 9.57%.The firm had revenue of $836.86 million for the quarter, compared to analysts’ expectations of $828.23 million. During the same period last year, the firm earned $0.86 EPS. The firm’s revenue was up 7.8% compared to the same quarter last year. Equities research analysts anticipate that Docusign will post 1.17 EPS for the current year.

Insider Buying and Selling

In other Docusign news, CFO Blake Jeffrey Grayson sold 6,500 shares of Docusign stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $70.00, for a total transaction of $455,000.00. Following the transaction, the chief financial officer owned 111,713 shares of the company’s stock, valued at $7,819,910. The trade was a 5.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Allan C. Thygesen sold 26,250 shares of the business’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $69.60, for a total transaction of $1,827,000.00. Following the transaction, the chief executive officer owned 142,261 shares in the company, valued at approximately $9,901,365.60. This represents a 15.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 51,477 shares of company stock worth $3,521,607 over the last three months. Corporate insiders own 1.66% of the company’s stock.

Hedge Funds Weigh In On Docusign

Several institutional investors have recently bought and sold shares of the stock. Central Pacific Bank Trust Division acquired a new stake in shares of Docusign in the fourth quarter worth $25,000. Modus Advisors LLC bought a new position in Docusign during the fourth quarter valued at about $27,000. Torren Management LLC acquired a new position in shares of Docusign in the fourth quarter valued at $28,000. Aventura Private Wealth LLC acquired a new position in shares of Docusign in the 4th quarter valued at $30,000. Finally, True Wealth Design LLC lifted its stake in Docusign by 105.2% during the fourth quarter. True Wealth Design LLC now owns 433 shares of the company’s stock worth $30,000 after purchasing an additional 222 shares during the period. 77.64% of the stock is currently owned by institutional investors.

Key Docusign News

Here are the key news stories impacting Docusign this week:

• Positive Sentiment: Q4 results beat and upbeat guidance — DocuSign reported $1.01 adjusted EPS vs. $0.95 est. and $836.9M revenue (7.8% YoY); guidance and commentary around Intelligent Agreement Management were constructive for growth expectations. Press Release
• Positive Sentiment: $2.0 billion boost to share repurchase program — management expanded the buyback, a direct capital‑return lever that reduces share count and supports EPS. Press Release
• Positive Sentiment: Product/AI momentum and IAM strategy — DocuSign is pushing IAM and AI partnerships, targeting ~18% IAM ARR share for FY27, which supports upsell, enterprise integration and longer customer lifetime value. Seeking Alpha — IAM/AI
• Positive Sentiment: Analyst support — BTIG reaffirmed a Buy and set a $70 price target, signaling material upside from current levels and giving investors third‑party validation of the recovery case. Benzinga — BTIG
• Neutral Sentiment: Investor materials and transcript available — management’s earnings slide deck and call transcript provide detail on billings, margins and the path to higher pro‑forma operating margins (helps model refinement but not an immediate catalyst). Earnings Transcript
• Neutral Sentiment: Board/Governance update — appointment of an AI‑focused independent director is a governance positive but is a longer‑term signal rather than a near‑term stock driver. Yahoo — Board/ Bull Case
• Negative Sentiment: Valuation and growth skepticism — some analysts trimmed fair‑value estimates and caution that competition, pricing tests and slowing growth could limit upside, keeping multiples under pressure. Yahoo — Valuation
• Negative Sentiment: Bearish risk calls — commentary warning of downside risk after recent declines highlights that sentiment and momentum can still drive volatility despite the beat. Invezz — Bearish Risk

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.