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

Docusign (NASDAQ:DOCU) had its price objective lowered by Morgan Stanley from $90.00 to $69.00 in a report issued on Wednesday,Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s price target suggests a potential upside of 41.39% from the company’s current price.

A number of other research firms have also issued reports on DOCU. Cantor Fitzgerald reiterated an “outperform” rating on shares of Docusign in a research note on Wednesday, December 17th. JPMorgan Chase & Co. lowered their price target on shares of Docusign from $80.00 to $78.00 and set a “neutral” rating for the company in a report on Friday, December 5th. UBS Group dropped their price target on shares of Docusign from $75.00 to $54.00 and set a “neutral” rating on the stock in a research note on Wednesday. Zacks Research lowered shares of Docusign from a “strong-buy” rating to a “hold” rating in a report on Monday, November 24th. Finally, Piper Sandler lowered their target price on Docusign from $90.00 to $75.00 and set a “neutral” rating for the company in a research note on Friday, December 5th. Five analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $70.13.

Docusign Stock Performance

Shares of NASDAQ:DOCU traded up $1.26 during midday trading on Wednesday, hitting $48.80. 5,716,426 shares of the company’s stock traded hands, compared to its average volume of 4,812,542. The firm’s fifty day moving average price is $51.11 and its two-hundred day moving average price is $64.46. Docusign has a twelve month low of $40.16 and a twelve month high of $94.67. The company has a market cap of $9.77 billion, a PE ratio of 34.43, a P/E/G ratio of 2.04 and a beta of 1.03.

Docusign (NASDAQ:DOCU) last released its quarterly earnings data 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 company had revenue of $836.86 million for the quarter, compared to analyst estimates of $828.23 million. During the same period last year, the company posted $0.86 earnings per share. The firm’s revenue was up 7.8% compared to the same quarter last year. As a group, equities research analysts anticipate that Docusign will post 1.17 EPS for the current fiscal year.

Insider Transactions at Docusign

In related news, CFO Blake Jeffrey Grayson sold 6,500 shares of the firm’s stock in a transaction on 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 directly owned 111,713 shares in the company, valued at $7,819,910. This trade represents a 5.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CRO Paula Hansen sold 6,000 shares of Docusign stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $67.05, for a total transaction of $402,300.00. Following the completion of the transaction, the executive directly owned 68,970 shares of the company’s stock, valued at approximately $4,624,438.50. This represents a 8.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 51,477 shares of company stock valued at $3,521,607. 1.66% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Docusign

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in Docusign by 1.1% during the 3rd quarter. Vanguard Group Inc. now owns 21,625,551 shares of the company’s stock valued at $1,558,986,000 after purchasing an additional 225,525 shares during the period. State Street Corp lifted its stake in Docusign by 0.9% in the fourth quarter. State Street Corp now owns 8,193,805 shares of the company’s stock valued at $560,456,000 after buying an additional 77,008 shares during the last quarter. Capital World Investors lifted its stake in Docusign by 38.1% in the fourth quarter. Capital World Investors now owns 5,815,804 shares of the company’s stock valued at $397,801,000 after buying an additional 1,603,900 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Docusign by 1.6% during the second quarter. American Century Companies Inc. now owns 5,564,318 shares of the company’s stock valued at $433,405,000 after acquiring an additional 86,560 shares during the period. Finally, Geode Capital Management LLC boosted its holdings in shares of Docusign by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 4,084,463 shares of the company’s stock valued at $278,665,000 after acquiring an additional 18,873 shares during the period. 77.64% of the stock is currently owned by institutional investors and hedge funds.

Docusign News Roundup

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.