DigitalOcean (NYSE:DOCN) Price Target Raised to $40.00

DigitalOcean (NYSE:DOCN) had its target price lifted by equities researchers at Stifel Nicolaus from $35.00 to $40.00 in a report issued on Wednesday,Benzinga reports. The firm currently has a “hold” rating on the stock. Stifel Nicolaus’ price objective points to a potential upside of 7.07% from the company’s previous close.

A number of other equities research analysts have also issued reports on the company. JPMorgan Chase & Co. raised their price target on DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research note on Friday, October 25th. Canaccord Genuity Group lifted their target price on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, October 4th. Barclays lifted their target price on DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research report on Friday, October 11th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Five equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $42.13.

DigitalOcean Trading Down 1.1 %

Shares of DOCN stock traded down $0.40 on Wednesday, reaching $37.36. 182,670 shares of the company’s stock were exchanged, compared to its average volume of 1,205,290. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $44.80. The stock has a market capitalization of $3.45 billion, a PE ratio of 44.16, a P/E/G ratio of 2.47 and a beta of 1.76. The company’s fifty day simple moving average is $39.75 and its 200 day simple moving average is $37.30.

DigitalOcean (NYSE:DOCN) last issued its quarterly 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 negative return on equity of 43.11% and a net margin of 10.86%. The firm had revenue of $198.50 million during the quarter, compared to analyst estimates of $196.64 million. During the same period last year, the company earned $0.17 EPS. DigitalOcean’s quarterly revenue was up 12.1% compared to the same quarter last year. As a group, sell-side analysts predict that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insider Transactions at DigitalOcean

In related news, insider Bratin Saha sold 16,989 shares of the business’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $36.85, for a total transaction of $626,044.65. Following the transaction, the insider now directly owns 390,296 shares in the company, valued at $14,382,407.60. The trade was a 4.17 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Matt Steinfort sold 12,498 shares of the business’s stock in a transaction on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total value of $499,920.00. Following the transaction, the chief financial officer now owns 517,498 shares in the company, 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. Corporate insiders own 0.74% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Point72 Hong Kong Ltd purchased a new stake in DigitalOcean during the 2nd quarter valued at about $877,000. Versor Investments LP purchased a new stake in DigitalOcean during the 3rd quarter valued at about $751,000. Public Sector Pension Investment Board purchased a new stake in DigitalOcean during the 2nd quarter valued at about $4,108,000. University of Texas Texas AM Investment Management Co. purchased a new stake in DigitalOcean during the 2nd quarter valued at about $11,712,000. Finally, FORA Capital LLC purchased a new stake in DigitalOcean during the 3rd quarter valued at about $1,149,000. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Company Profile

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).