DigitalOcean (NASDAQ:DOCN) Shares Gap Up on Analyst Upgrade

DigitalOcean Holdings, Inc. (NASDAQ:DOCN) shares gapped up before the market opened on Friday after Stifel Nicolaus raised their price target on the stock from $32.00 to $35.00. The stock had previously closed at $29.10, but opened at $30.32. Stifel Nicolaus currently has a hold rating on the stock. DigitalOcean shares last traded at $31.27, with a volume of 273,766 shares.

A number of other analysts have also recently commented on DOCN. UBS Group initiated coverage on DigitalOcean in a research report on Wednesday, May 22nd. They set a “neutral” rating and a $40.00 target price on the stock. JMP Securities restated a “market outperform” rating and issued a $47.00 price target on shares of DigitalOcean in a research report on Monday, May 13th. Barclays lowered their price objective on DigitalOcean from $43.00 to $38.00 and set an “overweight” rating on the stock in a report on Friday. Canaccord Genuity Group lifted their price objective on DigitalOcean from $41.00 to $42.00 and gave the company a “buy” rating in a report on Monday, May 13th. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a report on Monday, May 13th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat, DigitalOcean currently has a consensus rating of “Hold” and a consensus price target of $37.00.

Insider Transactions at DigitalOcean

In other news, Director Amy Butte sold 5,220 shares of the business’s stock in a transaction that occurred on Friday, June 7th. The stock was sold at an average price of $37.46, for a total transaction of $195,541.20. Following the sale, the director now owns 36,417 shares of the company’s stock, valued at approximately $1,364,180.82. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.74% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Several institutional investors have recently modified their holdings of DOCN. Global Retirement Partners LLC purchased a new stake in DigitalOcean in the 1st quarter valued at approximately $34,000. Tennessee Valley Asset Management Partners purchased a new stake in DigitalOcean in the 4th quarter valued at approximately $35,000. FinTrust Capital Advisors LLC purchased a new stake in DigitalOcean in the 1st quarter valued at approximately $36,000. Headlands Technologies LLC purchased a new stake in DigitalOcean in the 4th quarter valued at approximately $67,000. Finally, Covestor Ltd lifted its stake in DigitalOcean by 571.4% in the 1st quarter. Covestor Ltd now owns 1,947 shares of the company’s stock valued at $74,000 after buying an additional 1,657 shares in the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Trading Up 8.0 %

The business has a 50 day moving average of $33.68 and a 200-day moving average of $35.64. The stock has a market cap of $2.86 billion, a PE ratio of 59.00, a price-to-earnings-growth ratio of 3.01 and a beta of 1.81.

DigitalOcean (NASDAQ:DOCN) last issued its quarterly earnings results on Friday, May 10th. The company reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.06. The company had revenue of $184.73 million during the quarter, compared to the consensus estimate of $182.70 million. DigitalOcean had a negative return on equity of 26.29% and a net margin of 7.01%. On average, equities research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.78 EPS for the current fiscal year.

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).