DigitalOcean (NYSE:DOCN) Upgraded to “Buy” at Bank of America

DigitalOcean (NYSE:DOCN) was upgraded by analysts at Bank of America from an “underperform” rating to a “buy” rating in a research note issued on Thursday,Benzinga reports. The firm currently has a $60.00 price target on the stock, up from their prior price target of $34.00. Bank of America‘s price target points to a potential upside of 31.18% from the stock’s previous close.

Other equities research analysts also recently issued reports about the company. Weiss Ratings reiterated a “hold (c)” rating on shares of DigitalOcean in a report on Wednesday, October 8th. Wall Street Zen raised DigitalOcean from a “hold” rating to a “buy” rating in a research note on Saturday, November 1st. Morgan Stanley increased their price objective on DigitalOcean from $41.00 to $44.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 6th. Barclays increased their price objective on DigitalOcean from $38.00 to $40.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 6th. Finally, UBS Group started coverage on DigitalOcean in a research note on Tuesday, October 7th. They issued a “neutral” rating and a $40.00 price objective on the stock. Seven equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $45.36.

DigitalOcean Stock Performance

Shares of NYSE DOCN opened at $45.74 on Thursday. The business’s 50 day moving average price is $37.42 and its 200-day moving average price is $32.25. DigitalOcean has a fifty-two week low of $25.45 and a fifty-two week high of $47.02. The company has a market cap of $4.16 billion, a price-to-earnings ratio of 35.18, a PEG ratio of 2.21 and a beta of 1.78.

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

Insider Transactions at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 13,010 shares of the stock in a transaction on Wednesday, September 3rd. The stock was 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 of the company’s stock, valued at approximately $8,587,849.55. This trade represents a 4.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. RFG Advisory LLC bought a new stake in DigitalOcean during the 3rd quarter valued at $278,000. Alps Advisors Inc. purchased a new stake in shares of DigitalOcean during the 3rd quarter valued at $437,000. SBI Securities Co. Ltd. lifted its holdings 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 valued at $227,000 after purchasing an additional 1,639 shares during the last quarter. Envestnet Asset Management Inc. lifted its holdings 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 valued at $2,568,000 after purchasing an additional 30,323 shares during the last quarter. Finally, Penserra Capital Management LLC lifted its holdings 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 valued at $10,013,000 after purchasing an additional 62,725 shares during the last quarter. Institutional investors 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).