DigitalOcean (NYSE:DOCN) Now Covered by Analysts at Citigroup

Citigroup started coverage on shares of DigitalOcean (NYSE:DOCN) in a report issued on Friday, Marketbeat Ratings reports. The brokerage issued a buy rating and a $45.00 target price on the stock.

Several other research firms also recently commented on DOCN. Morgan Stanley upgraded shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Canaccord Genuity Group increased their price objective on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a report on Friday, October 4th. Stifel Nicolaus boosted their target price on DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a report on Wednesday, December 18th. JPMorgan Chase & Co. raised their price target on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Finally, Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Six research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $42.00.

DigitalOcean Stock Performance

NYSE:DOCN opened at $40.14 on Friday. DigitalOcean has a fifty-two week low of $26.63 and a fifty-two week high of $44.80. The stock has a market capitalization of $3.70 billion, a PE ratio of 47.22, a P/E/G ratio of 2.77 and a beta of 1.78. The company has a fifty day moving average of $36.84 and a two-hundred day moving average of $37.30.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Monday, November 4th. The company reported $0.52 earnings per share 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 business had revenue of $198.50 million for the quarter, compared to analysts’ expectations of $196.64 million. During the same period in the previous year, the firm posted $0.17 EPS. The business’s revenue for the quarter was up 12.1% compared to the same quarter last year. Research analysts forecast that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In related news, insider Bratin Saha sold 4,289 shares of the company’s stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total transaction of $157,835.20. Following the completion of the sale, the insider now directly owns 372,762 shares of the company’s stock, valued at approximately $13,717,641.60. This represents a 1.14 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total value of $499,920.00. Following the completion of the sale, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at $20,699,920. The trade was a 2.36 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 37,244 shares of company stock worth $1,416,208 in the last 90 days. 0.74% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. BSW Wealth Partners raised its holdings in DigitalOcean by 4.3% in the fourth quarter. BSW Wealth Partners now owns 14,556 shares of the company’s stock valued at $496,000 after acquiring an additional 600 shares in the last quarter. Cherry Creek Investment Advisors Inc. grew its stake in shares of DigitalOcean by 17.3% in the fourth quarter. Cherry Creek Investment Advisors Inc. now owns 12,745 shares of the company’s stock worth $434,000 after purchasing an additional 1,880 shares in the last quarter. Pacer Advisors Inc. lifted its stake in shares of DigitalOcean by 33.1% in the 4th quarter. Pacer Advisors Inc. now owns 5,712 shares of the company’s stock worth $195,000 after acquiring an additional 1,419 shares during the period. KBC Group NV boosted its stake in DigitalOcean by 37.6% during the 4th quarter. KBC Group NV now owns 2,884 shares of the company’s stock valued at $98,000 after purchasing an additional 788 shares in the last quarter. Finally, Harbor Investment Advisory LLC raised its position in DigitalOcean by 380.0% in the fourth quarter. Harbor Investment Advisory LLC now owns 720 shares of the company’s stock worth $25,000 after acquiring an additional 570 shares in the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

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).