In a recent transaction, Robert Chatwani, the President General Mgr, Growth at Docusign, Inc. (NASDAQ:DOCU), sold 14,799 shares of the company’s common stock. The sale was executed at an average price of $55.46 per share, resulting in a total value of approximately $820,752.
The transaction was conducted on September 18, 2024, with share prices ranging from $55.20 to $55.66. Following the sale, Chatwani still holds 70,748 shares of Docusign, indicating ongoing investment in the company’s future.
Investors should note that the sale was carried out in accordance with a Rule 10b5-1 trading plan, which allows insiders to establish a prearranged plan to buy or sell company stock. This plan is in place to avoid any accusations of insider trading, as the trades are scheduled ahead of time and occur regardless of any subsequent nonpublic information the insider might receive.
Docusign, based in San Francisco, California, specializes in electronic agreement services and is known for its e-signature solutions. The company has been a key player in the shift towards 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 full information upon request to the SEC, Docusign, or any security holder of the issuer.
In other recent news, Docusign reported a strong second quarter for fiscal year 2025, revealing a 7% year-over-year revenue increase to $736 million. BofA Securities updated its assessment of Docusign, raising the price target to $68.00 from the previous $60.00, while maintaining a Neutral rating on the stock. The adjustment comes after evaluating the company’s recent performance and future outlook, 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 the Intelligent Agreement Management (IAM) platform, which has received positive initial feedback. BofA Securities’ revised price objective of $68 is based on 14 times the forecasted C25e FCF, an increase from the prior multiple of 12 times.
Looking forward, Docusign anticipates Q3 revenue between $743 million and $747 million, and full fiscal year 2025 revenue between $2.940 billion and $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 full year. Despite a slight expected 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’s Market Cap stands at $11.51 billion, and it is trading at a Price to Earnings (P/E) ratio of 11.76, suggesting that the market values the company’s earnings quite favorably. Adjusted for the last twelve months as of Q2 2025, the P/E ratio is slightly lower at 11.2, indicating a consistent valuation over time.
InvestingPro Tips reveal that Docusign’s management has been actively buying back shares, which could be a sign of confidence in the company’s value and future prospects. Additionally, the company holds more cash than debt on its balance sheet, providing financial stability and flexibility. These factors, alongside a robust gross profit margin of 80.25% for the last twelve months as of Q2 2025, are critical considerations for investors assessing 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 analysts’ earnings revisions for the upcoming period. To explore these further, one might visit InvestingPro’s dedicated page for Docusign at https://www.investing.com/pro/DOCU.
It is also noteworthy that the company’s shares are trading at 87.46% of their 52-week high, with a recent closing price of $55.69. This could suggest a potential upside if the company continues to perform well, supported by a fair value estimation by analysts at $62 and InvestingPro’s fair value at $69.2.
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