Docusign director sells more than $820,000 worth of stock via Investing.com

In a recent transaction, Robert Chatwani, President General Mgr, Growth at Docusign, Inc. (NASDAQ:DOCU), sold 14,799 shares of the company’s common stock. The sale was made at an average price of $55.46 per share, resulting in a total value of approximately $820,752.

The transaction took place on September 18, 2024, with share prices ranging from $55.20 to $55.66. Following the sale, Chatwani still owns 70,748 shares of Docusign, indicating ongoing investment in the company’s future.

Investors should note that the sale was made pursuant to a Rule 10b5-1 trading plan, which allows insiders to establish a predetermined plan to buy or sell company stock. This plan is in place to avoid any accusations of insider trading because trades are scheduled ahead of time and take place regardless of any subsequent non-public information they may receive.

Docusign, based in San Francisco, California, specializes in electronic agreement services and is known for its electronic signature solutions. The company has been a key player in the shift to digital documentation and workflow automation.

For those interested in the specific details of the transaction, including the exact number of shares sold at each price point, the reporting person has agreed to provide complete information upon request to the SEC, Docusign or any holder of the issuer.

In other recent news, Docusign reported a strong second quarter for fiscal 2025, revealing a 7% year-over-year increase in revenue to $736 million. BofA Securities upgraded their rating on Docusign, raising their price target to $68.00 from $60.00 previously, while maintaining a Neutral rating on the stock. The adjustment comes after evaluating the company’s recent performance and future prospects, which indicate effective execution of growth and productivity strategies.

Docusign’s non-GAAP operating margins reached a record 32% and free cash flow generation was approximately $200 million. The company also launched its Intelligent Agreement Management (IAM) platform, which received positive initial feedback. BofA Securities’ revised price objective of $68 is based on 14 times forecast C25e FCF, an increase from the previous multiple of 12 times.

Looking ahead, Docusign anticipates Q3 revenue of $743 million to $747 million and full fiscal year 2025 revenue of $2.940 billion to $2.952 billion. Non-GAAP gross margin is expected to be between 81.0% and 82.0% for Q3 and fiscal 2025, with operating margin projected at 28.5% to 29.5% for Q3 and 29.0% to 29.5% for the whole year. Despite an expected slight decline in operating margin due to investments in IAM, Docusign remains confident in its growth potential.

InvestingPro Insights

Recent market data reflects an interesting position for Docusign, Inc. (NASDAQ:DOCU). The company has a market cap of $11.51 billion and trades at a Price-to-Earnings (P/E) ratio of 11.76, which suggests that the market rates the company’s earnings quite favorably. Adjusted for the trailing twelve months through Q2 2025, the P/E ratio is slightly lower at 11.2, indicating a consistent valuation over time.

InvestingPro Tips reveals that Docusign’s management has been actively repurchasing shares, which could be a sign of confidence in the company’s value and future prospects. In addition, the company has more cash than debt on its balance sheet, providing financial stability and flexibility. These factors, along with a robust gross profit margin of 80.25% for the trailing twelve months through Q2 2025, are key considerations for investors evaluating the company’s health and operational efficiency.

For those looking for deeper insights, there are 13 additional InvestingPro tips available, including data on the company’s net income growth expectations and analyst earnings revisions for the period ahead. To explore them further, you can visit InvestingPro’s dedicated page for Docusign at https://www.investing.com/pro/DOCU.

It is also worth noting that the company’s stock is trading 87.46% off its 52-week high with a recent close price of $55.69. This could suggest potential upside if the company continues to perform well, supported by an analyst fair value estimate of $62 and InvestingPro’s fair value of $69.2.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.