DocuSign today
(As of 12/27/2024 5:45 PM ET)
- 52 week range
- $48.70
▼
$107.86
- P/E ratio
- 19.18
- Target price
- $92.45
Electronic signatures were not widely adopted until the COVID-19 pandemic in 2020 forced businesses and government agencies to accept electronic signatures during quarantine. This unforeseen event accelerated the adoption of electronic signatures and stimulated DocuSign Inc. NASDAQ: DOCUMENT in the spotlight. This little-known computer technology company was a pioneer and leading provider of electronic signatures at the time. The pandemic sent DocuSign shares soaring from $74.11 in December 2019 to a peak of $314.76 by August 2021.
DocuSign’s AI-powered IAM system updates its revenue and earnings
The stock has since fallen due to normalization and growing competition from other players in the electronic signature space. Adobe Inc. NASDAQ: ADBE And Dropbox Inc. NASDAQ:DBX. DocuSign expanded its services to include contract lifecycle management (CLM), artificial intelligence (AI) integration, and the introduction of AI-assisted contract review for CLM in the third quarter. CLM is part of a larger Intelligent Agreement Management (IAM) system. system. The launch of a comprehensive IAM platform based on artificial intelligence in April 2024 became the company’s most significant launch since the pandemic. IAM brings together its previously standalone products under a single platform that includes electronic signature, CLM and new services including Navigator and DocuSign Maestro. Maestro allows users to automate the creation of agreements without the need for coding.
IAM Adoption Scores Growth in Fiscal Q3 2025
IAM gained momentum in DocuSign’s fiscal third quarter of 2025. IAM deals and volumes have accelerated. Its sales teams reported that more than 80% of its reps closed more than three deals and 60% of its sales reps closed more than six deals in the quarter. DocuSign closed 10 times more IAM deals in the third quarter than in the second quarter.
DocuSign MarketRank™ Stock Analysis
- Overall MarketRank™
- 88th percentile
- Analyst rating
- Hold
- Pros/Cons
- 0.6% Minus
- Short interest level
- Healthy
- Dividend Power
- N/A
- Environmental assessment
- -0.68
- Mood News
- 0.69
- Insider trading
- Sale of shares
- Project Profit Growth
- 13.91%
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This impacted revenue and profit. DocuSign reported earnings per share of 90 cents, beating analysts’ consensus estimates by 3 cents. Revenue grew 7.8% YoY to $754.8 million, well ahead of consensus estimates of $745.25 million. Billing grew 9% YoY to $752.3 million.
Non-GAAP gross margin was 82.5%. Operating cash flow was $234.2 million, compared to $264.2 million in the same period last year. DocuSign ended the quarter with $1.1 billion in cash and cash equivalents. The company repurchased $172.7 million worth of shares.
DocuSign issues forecast guidance for the fourth quarter of 2025.
The third quarter ended with strong dynamics. DocuSign posted fourth-quarter fiscal 2024 revenue growth guidance of $758 million to $762 million, versus consensus estimates of $755.87 million. Billings are expected to be between $870 million and $880 million.
DocuSign CEO commented: “DocuSign has delivered powerful innovation to customers, highlighted by new capabilities in its Intelligent Agreement Management (IAM) platform. In the third quarter, IAM’s early momentum exceeded expectations and we continued to deliver improvements in our core business through strong revenue and operating growth. benefit.”
DOCU triggers ascending triangle breakout
An ascending triangle consists of a flat-topped upper resistance line that converges with an ascending lower support line. A breakout occurs when a stock rises above the upper trend line. If the breakout occurs through a price gap, the previous closing price becomes support for the gap fill level.
DOCU formed an ascending triangle ahead of the earnings report, with an upper flat-top resistance line set at $83.58 ahead of Q3 2025 results. DOCU rose to $95.33 after the report the next morning, reaching $107.86 after beating consensus revenue and earnings estimates and raising fourth-quarter guidance. However, the stock encountered a rejection at the weekly 200-period moving average (MA) resistance level at $104.10. It later returned to its consensus price target of $92.45 with daily VWAP support fixed at $82.20. The support level to fill the $84.35 gap will be critical in the event of further pullback. The daily RSI peaked sharply around 85 before falling to 62. Fibonacci (Fibonacci retracement support levels are at $88.22, $84.35, $76.99 and $73.06.
The average target price for DOCU is $92.45which implies a growth potential of 1.2%. and his highest analyst price target is at $124.00. Analysts have rated the stock three Buy, seven Hold and three Sell ratings. The stock’s short interest is 5.81%.
Actionable Option Strategies: Bullish investors may consider using cash-backed puts at Fibonacci retracement support levels to buy the dip. In the case of stock assignment, writing covered calls at high Fibonacci levels implements a wheel strategy for income opportunities while hedging the downside with the premium received.
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