SAN FRANCISCO—Allan C. Thygesen, President and CEO of Docusign, Inc. (NASDAQ:DOCU), sold a significant portion of his common stock holdings, according to a recent SEC filing. On December 2, Thygesen sold a total of 7,763 shares of Docusign stock, valued at approximately $625,238. The shares were sold at prices ranging from $79.87 to $81.73 each. The sale comes as DocuSign (NASDAQ:DOCU) maintains impressive gross profit margins of 80% and shows strong financial health, according to InvestingPro data.
The transactions were conducted under a pre-established Rule 10b5-1 trading plan, a common practice that allows insiders to set up a predetermined schedule for selling company stock. Following these sales, Thygesen retains direct ownership of 100,062 shares. With DocuSign's earnings report due on December 5, InvestingPro subscribers can access 16 additional investment tips and comprehensive analysis about the company's valuation and growth prospects.
Investors often closely monitor insider trading activity for potential insights into a company's future performance. However, such transactions can also be routine financial planning moves by executives. The company has demonstrated strong momentum with a 75% return over the past year and maintains a healthy balance sheet with more cash than debt.
In other recent news, Docusign reported strong Q2 earnings, with revenue up 7% year-over-year to $736 million and non-GAAP operating margins hitting a record 32%. The company's free cash flow generation was approximately $200 million. This performance was underscored by the successful launch of the Intelligent Agreement Management (IAM) platform, which has garnered positive initial feedback.
Global investment banking firm Jefferies has increased its price target for Docusign shares to $95 from the previous $80, maintaining a Buy rating on the stock. This adjustment follows a positive assessment of Docusign's market position and growth potential. BofA Securities also raised its price target for Docusign to $68 from the previous $60, maintaining a neutral stance.
Looking forward, Docusign anticipates Q3 revenue to be between $743 million and $747 million, and full fiscal year 2025 revenue to be between $2.94 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. These recent developments highlight Docusign's momentum and future growth potential.
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