DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives $42.73 Consensus Target Price from Analysts

DigitalOcean Holdings, Inc. (NYSE:DOCN) has been given a consensus recommendation of “Moderate Buy” by the twelve analysts that are covering the stock, Marketbeat.com reports. Six equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $42.73.

DOCN has been the topic of a number of recent research reports. Cantor Fitzgerald began coverage on DigitalOcean in a research report on Friday, January 17th. They set a “neutral” rating and a $39.00 target price on the stock. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Citigroup assumed coverage on shares of DigitalOcean in a report on Friday, January 24th. They set a “buy” rating and a $45.00 price objective for the company. Barclays increased their price target on shares of DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, October 11th. Finally, Stifel Nicolaus increased their target price on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a report on Wednesday, December 18th.

DigitalOcean Stock Down 0.4 %

DOCN opened at $41.52 on Thursday. The stock’s 50 day moving average price is $37.17 and its two-hundred day moving average price is $37.62. The firm has a market capitalization of $3.83 billion, a P/E ratio of 48.84, a price-to-earnings-growth ratio of 3.03 and a beta of 1.78. DigitalOcean has a 12-month low of $26.63 and a 12-month high of $44.80.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.40 by $0.12. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The business had revenue of $198.50 million for the quarter, compared to analyst estimates of $196.64 million. During the same quarter in the previous year, the firm posted $0.17 earnings per share. DigitalOcean’s revenue was up 12.1% compared to the same quarter last year. As a group, analysts anticipate that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Bratin Saha sold 16,989 shares of the firm’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $36.85, for a total value of $626,044.65. Following the transaction, the insider now owns 390,296 shares of the company’s stock, valued at approximately $14,382,407.60. This trade represents a 4.17 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Matt Steinfort sold 12,498 shares of the business’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following the sale, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. This trade represents a 2.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 37,244 shares of company stock worth $1,416,208 in the last 90 days. Corporate insiders own 0.74% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

Hedge funds have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC grew its stake in DigitalOcean by 47.3% in the second quarter. Hsbc Holdings PLC now owns 10,022 shares of the company’s stock valued at $343,000 after acquiring an additional 3,219 shares during the period. Sei Investments Co. lifted its stake in DigitalOcean by 1.5% in the second quarter. Sei Investments Co. now owns 30,834 shares of the company’s stock valued at $1,071,000 after buying an additional 468 shares in the last quarter. Thrivent Financial for Lutherans acquired a new position in shares of DigitalOcean in the second quarter valued at approximately $1,550,000. The Manufacturers Life Insurance Company increased its position in shares of DigitalOcean by 8.0% during the second quarter. The Manufacturers Life Insurance Company now owns 38,344 shares of the company’s stock worth $1,332,000 after acquiring an additional 2,830 shares in the last quarter. Finally, Cetera Investment Advisers raised its holdings in shares of DigitalOcean by 5.0% during the second quarter. Cetera Investment Advisers now owns 59,188 shares of the company’s stock worth $2,057,000 after acquiring an additional 2,823 shares during the period. Institutional investors and hedge funds own 49.77% of the company’s stock.

About DigitalOcean

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).