Canaccord Genuity Group Increases DigitalOcean (NYSE:DOCN) Price Target to $120.00

Key Points

• Canaccord Genuity raised its price target on DigitalOcean to $120 (from $80) and kept a "buy" rating, implying roughly a 16.65% upside from the recent share price.
• Shares traded up to $102.87 during the session, giving DigitalOcean a market cap of about $10.73 billion and a trailing P/E of 40.66, with the 50‑ and 200‑day moving averages at $77.95 and $59.59 respectively.
• Company insiders (CFO Matt Steinfort and CAO Cherie Barrett) sold shares in March, reducing their stakes, while analyst coverage is mixed but positive overall — nine Buys and four Holds, with a consensus "Moderate Buy" and an average target of $91.08.

DigitalOcean (NYSE:DOCN - Get Free Report) had its price objective increased by equities research analysts at Canaccord Genuity Group from $80.00 to $120.00 in a report issued on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Canaccord Genuity Group's target price would suggest a potential upside of 16.65% from the stock's current price.

DOCN has been the topic of a number of other research reports. Citizens Jmp upped their target price on DigitalOcean from $83.00 to $105.00 and gave the company a "market outperform" rating in a research note on Thursday, March 26th. Oppenheimer upped their target price on DigitalOcean from $100.00 to $115.00 and gave the company an "outperform" rating in a research note on Tuesday. Stifel Nicolaus set a $57.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. Wall Street Zen lowered DigitalOcean from a "buy" rating to a "hold" rating in a research note on Sunday, January 4th. Finally, Piper Sandler increased their price objective on DigitalOcean from $67.00 to $98.00 and gave the company a "neutral" rating in a research note on Tuesday, April 7th. Nine analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $91.08.

DigitalOcean Price Performance

DOCN traded up $6.44 during midday trading on Friday, reaching $102.87. 2,851,846 shares of the company's stock were exchanged, compared to its average volume of 3,937,409. The stock has a market capitalization of $10.73 billion, a PE ratio of 40.66 and a beta of 1.43. The business's 50-day moving average price is $77.95 and its 200 day moving average price is $59.59. DigitalOcean has a 1-year low of $25.56 and a 1-year high of $104.48.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 20,000 shares of the business's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the completion of the transaction, the chief financial officer directly owned 545,916 shares in the company, valued at approximately $30,243,746.40. The trade was a 3.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Cherie Barrett sold 22,000 shares of the business's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the transaction, the chief accounting officer owned 62,469 shares of the company's stock, valued at $3,421,427.13. This trade represents a 26.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On DigitalOcean

Several large investors have recently added to or reduced their stakes in the business. Allworth Financial LP boosted its position in shares of DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company's stock worth $25,000 after acquiring an additional 255 shares during the last quarter. Huntington National Bank boosted its position in shares of DigitalOcean by 638.3% in the fourth quarter. Huntington National Bank now owns 598 shares of the company's stock worth $29,000 after acquiring an additional 517 shares during the last quarter. NBC Securities Inc. acquired a new stake in shares of DigitalOcean in the fourth quarter worth approximately $32,000. Banque Cantonale Vaudoise acquired a new stake in shares of DigitalOcean in the first quarter worth approximately $33,000. Finally, Wilmington Savings Fund Society FSB purchased a new stake in shares of DigitalOcean during the 3rd quarter valued at $37,000. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean's platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.

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