DigitalOcean (NYSE:DOCN) Sets New 12-Month High on Analyst Upgrade

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price reached a new 52-week high on Thursday after Barclays raised their price target on the stock from $40.00 to $49.00. Barclays currently has an overweight rating on the stock. DigitalOcean traded as high as $48.20 and last traded at $48.3460, with a volume of 219157 shares changing hands. The stock had previously closed at $45.81.

Several other research analysts have also recently weighed in on DOCN. Weiss Ratings reissued a “hold (c)” rating on shares of DigitalOcean in a report on Wednesday, October 8th. Stifel Nicolaus set a $36.00 target price on shares of DigitalOcean in a research report on Tuesday, August 5th. Canaccord Genuity Group increased their target price on shares of DigitalOcean from $49.00 to $55.00 and gave the stock a “buy” rating in a research report on Thursday, October 9th. Wall Street Zen upgraded shares of DigitalOcean from a “hold” rating to a “buy” rating in a research report on Saturday, November 1st. Finally, Bank of America upgraded shares of DigitalOcean from an “underperform” rating to a “buy” rating and increased their target price for the stock from $34.00 to $60.00 in a research report on Thursday. Seven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus price target of $46.18.

Insider Activity

In related news, insider Bratin Saha sold 13,010 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total transaction of $414,628.70. Following the sale, the insider owned 269,465 shares in the company, valued at approximately $8,587,849.55. This trade represents a 4.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several large investors have recently made changes to their positions in the company. RFG Advisory LLC acquired a new stake in shares of DigitalOcean during the 3rd quarter worth approximately $278,000. Alps Advisors Inc. acquired a new stake in shares of DigitalOcean during the 3rd quarter worth approximately $437,000. SBI Securities Co. Ltd. boosted its position in shares of DigitalOcean by 32.8% during the 3rd quarter. SBI Securities Co. Ltd. now owns 6,640 shares of the company’s stock worth $227,000 after acquiring an additional 1,639 shares in the last quarter. Envestnet Asset Management Inc. boosted its position in shares of DigitalOcean by 67.6% during the 3rd quarter. Envestnet Asset Management Inc. now owns 75,163 shares of the company’s stock worth $2,568,000 after acquiring an additional 30,323 shares in the last quarter. Finally, Penserra Capital Management LLC boosted its position in shares of DigitalOcean by 27.2% during the 3rd quarter. Penserra Capital Management LLC now owns 293,132 shares of the company’s stock worth $10,013,000 after acquiring an additional 62,725 shares in the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Trading Up 5.1%

The firm has a market cap of $4.38 billion, a price-to-earnings ratio of 37.20, a price-to-earnings-growth ratio of 2.21 and a beta of 1.78. The company’s 50-day moving average is $37.42 and its 200-day moving average is $32.25.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share for the quarter, beating analysts’ consensus estimates of $0.47 by $0.12. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The firm had revenue of $218.70 million for the quarter, compared to analyst estimates of $216.62 million. During the same quarter last year, the business posted $0.48 earnings per share. The company’s quarterly revenue was up 13.6% on a year-over-year basis. Equities research analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current year.

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).