DigitalOcean Holdings, Inc. (NYSE:DOCN) Stock Rated “Moderate Buy” by Sell-Side Analysts

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have earned an average rating of “Moderate Buy” from the eighteen analysts that are covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, one has issued a hold rating, fourteen have issued a buy rating and two have issued a strong buy rating on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $141.06.

Several research analysts have weighed in on DOCN shares. Citigroup reduced their target price on DigitalOcean from $190.00 to $160.00 and set a “buy” rating on the stock in a report on Wednesday, November 4th. Stifel Nicolaus set a $130.00 target price on DigitalOcean in a research note on Tuesday, November 3rd. UBS Group lowered their price target on DigitalOcean from $105.00 to $100.00 and set a “neutral” rating for the company in a report on Wednesday, November 4th. The Goldman Sachs Group dropped their price target on DigitalOcean from $178.00 to $156.00 and set a “buy” rating on the stock in a research report on Thursday, November 5th. Finally, Zacks Research upgraded DigitalOcean from a “hold” rating to a “strong-buy” rating in a report on Monday, October 19th.

Insider Activity at DigitalOcean

In other DigitalOcean news, CAO Cherie Barrett sold 4,456 shares of the stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the completion of the transaction, the chief accounting officer owned 65,487 shares in the company, valued at approximately $8,668,514.19. This represents a 6.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total value of $1,057,300.00. Following the completion of the sale, the chief financial officer directly owned 503,692 shares in the company, valued at $53,255,355.16. This represents a 1.95% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 18,441 shares of company stock valued at $2,068,475 in the last quarter. Corporate insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of America Corp DE acquired a new position in DigitalOcean during the 2nd quarter worth approximately $241,945,000. First Trust Advisors LP raised its holdings in shares of DigitalOcean by 9.3% in the first quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock valued at $123,622,000 after purchasing an additional 122,675 shares during the last quarter. Stephens Investment Management Group LLC acquired a new stake in shares of DigitalOcean in the third quarter valued at approximately $98,056,000. Bank of New York Mellon Corp acquired a new stake in shares of DigitalOcean in the second quarter valued at approximately $98,011,000. Finally, Principal Financial Group Inc. lifted its position in shares of DigitalOcean by 155.3% in the first quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after purchasing an additional 674,231 shares in the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Stock Up 1.4%

Shares of DigitalOcean stock opened at $79.37 on Wednesday. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.61. DigitalOcean has a 12 month low of $41.96 and a 12 month high of $187.50. The business has a fifty day simple moving average of $115.07 and a 200 day simple moving average of $111.94. The stock has a market cap of $9.37 billion, a PE ratio of 256.03, a price-to-earnings-growth ratio of 97.36 and a beta of 1.69.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.13. DigitalOcean had a return on equity of 15.01% and a net margin of 3.11%. The company had revenue of $321.19 million during the quarter, compared to analysts’ expectations of $306.74 million. During the same period in the prior year, the business posted $0.54 EPS. DigitalOcean’s revenue was up 39.6% on a year-over-year basis. Research analysts predict that DigitalOcean will post 0.65 EPS for the current year.

About DigitalOcean

DigitalOcean Holdings, Inc. provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Founded in 2011, the company focuses on making it easier for customers to build, deploy, and scale applications without managing their own physical infrastructure. Its platform includes virtual machines known as Droplets, managed Kubernetes, an application platform, managed databases, object storage, and networking and monitoring tools. These services support tasks ranging from hosting websites and applications to developing and running cloud-native software.