DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives $39.83 Consensus Target Price from Brokerages

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) has been assigned a consensus recommendation of "Hold" from the thirteen brokerages that are covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, six have issued a hold recommendation and six have given a buy recommendation to the company. The average 1 year target price among brokers that have covered the stock in the last year is $39.83.

Several brokerages have recently issued reports on DOCN. JMP Securities raised their target price on shares of DigitalOcean from $47.00 to $55.00 and gave the company a "market outperform" rating in a research note on Monday, January 27th. Morgan Stanley reduced their target price on shares of DigitalOcean from $52.00 to $41.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 16th. Cantor Fitzgerald increased their price target on shares of DigitalOcean from $39.00 to $43.00 and gave the company a "neutral" rating in a research report on Wednesday, February 26th. Stifel Nicolaus cut their price target on shares of DigitalOcean from $40.00 to $33.00 and set a "hold" rating on the stock in a research report on Monday, April 7th. Finally, Needham & Company LLC reiterated a "hold" rating on shares of DigitalOcean in a research report on Tuesday, May 6th.

Insiders Place Their Bets

In other news, insider Bratin Saha sold 3,948 shares of the firm's stock in a transaction that occurred on Tuesday, March 18th. The shares were sold at an average price of $36.63, for a total transaction of $144,615.24. Following the completion of the transaction, the insider now directly owns 358,696 shares of the company's stock, valued at $13,139,034.48. This trade represents a 1.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On DigitalOcean

Institutional investors have recently added to or reduced their stakes in the company. Hillsdale Investment Management Inc. grew its stake in DigitalOcean by 0.4% during the fourth quarter. Hillsdale Investment Management Inc. now owns 84,500 shares of the company's stock worth $2,879,000 after buying an additional 300 shares in the last quarter. Focus Partners Wealth boosted its holdings in DigitalOcean by 2.8% in the fourth quarter. Focus Partners Wealth now owns 12,455 shares of the company's stock valued at $424,000 after acquiring an additional 338 shares during the last quarter. Summit Investment Advisors Inc. boosted its holdings in shares of DigitalOcean by 6.8% during the 4th quarter. Summit Investment Advisors Inc. now owns 6,866 shares of the company's stock worth $234,000 after buying an additional 436 shares in the last quarter. Harbor Investment Advisory LLC boosted its holdings in shares of DigitalOcean by 380.0% during the 4th quarter. Harbor Investment Advisory LLC now owns 720 shares of the company's stock worth $25,000 after buying an additional 570 shares in the last quarter. Finally, BSW Wealth Partners lifted its holdings in shares of DigitalOcean by 4.3% in the 4th quarter. BSW Wealth Partners now owns 14,556 shares of the company's stock worth $496,000 after purchasing an additional 600 shares in the last quarter. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean Price Performance

Shares of NYSE DOCN traded down $0.34 during mid-day trading on Friday, hitting $30.88. The company's stock had a trading volume of 685,331 shares, compared to its average volume of 1,243,022. The stock has a market cap of $2.81 billion, a price-to-earnings ratio of 36.36, a price-to-earnings-growth ratio of 3.12 and a beta of 1.88. DigitalOcean has a one year low of $25.45 and a one year high of $47.02. The company's fifty day simple moving average is $31.70 and its 200-day simple moving average is $36.43.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its earnings results on Tuesday, May 6th. The company reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.11. The company had revenue of $210.70 million for the quarter, compared to analyst estimates of $208.63 million. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The company's revenue for the quarter was up 14.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.43 EPS. On average, sell-side analysts predict that DigitalOcean will post 1.01 EPS for the current 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).