DigitalOcean (NYSE:DOCN) Raised to “Overweight” at Morgan Stanley

DigitalOcean (NYSE:DOCN) was upgraded by analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a report issued on Thursday,Benzinga reports. The brokerage currently has a $41.00 price target on the stock, up from their prior price target of $40.00. Morgan Stanley’s target price would indicate a potential upside of 19.85% from the stock’s current price.

DOCN has been the topic of a number of other reports. Canaccord Genuity Group raised their price objective on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, October 4th. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Stifel Nicolaus increased their price objective on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a report on Wednesday, December 18th. JPMorgan Chase & Co. boosted their target price on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday, October 25th. Finally, Barclays raised their price target on shares of DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research note on Friday, October 11th. Five analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $42.00.

DigitalOcean Stock Up 1.9 %

Shares of DOCN opened at $34.21 on Thursday. The stock’s fifty day simple moving average is $37.06 and its 200-day simple moving average is $37.21. The firm has a market capitalization of $3.16 billion, a PE ratio of 40.25, a price-to-earnings-growth ratio of 2.45 and a beta of 1.78. DigitalOcean has a 12-month low of $26.63 and a 12-month high of $44.80.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.12. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The company had revenue of $198.50 million during the quarter, compared to analyst estimates of $196.64 million. During the same period in the previous year, the company earned $0.17 EPS. The company’s revenue for the quarter was up 12.1% compared to the same quarter last year. Analysts anticipate that DigitalOcean will post 1.01 EPS for the current year.

Insider Activity

In related news, insider Bratin Saha sold 16,989 shares of the business’s stock in a transaction that occurred 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 of the company’s stock, valued at approximately $14,382,407.60. The trade was a 4.17 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total value of $499,920.00. Following the completion of the transaction, the chief financial officer now directly owns 517,498 shares in the company, valued at $20,699,920. The trade was a 2.36 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 32,955 shares of company stock valued at $1,258,373. 0.74% of the stock is owned by insiders.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Victory Capital Management Inc. grew its holdings in shares of DigitalOcean by 95.8% during the 2nd quarter. Victory Capital Management Inc. now owns 17,332 shares of the company’s stock worth $602,000 after purchasing an additional 8,481 shares in the last quarter. Texas Permanent School Fund Corp bought a new stake in shares of DigitalOcean during the second quarter worth about $1,601,000. Dimensional Fund Advisors LP increased its stake in shares of DigitalOcean by 23.4% in the second quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company’s stock valued at $37,512,000 after buying an additional 205,007 shares during the period. Renaissance Technologies LLC raised its holdings in DigitalOcean by 152.6% in the 2nd quarter. Renaissance Technologies LLC now owns 375,600 shares of the company’s stock valued at $13,052,000 after buying an additional 226,900 shares during the last quarter. Finally, Amalgamated Bank grew its holdings in DigitalOcean by 670.7% during the 2nd quarter. Amalgamated Bank now owns 16,347 shares of the company’s stock worth $568,000 after acquiring an additional 14,226 shares during the last quarter. Institutional investors and hedge funds 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).