DigitalOcean (NYSE:DOCN) Downgraded to Hold Rating by Wall Street Zen

DigitalOcean (NYSE:DOCN - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

Other equities analysts have also issued research reports about the stock. Citigroup lowered their price objective on shares of DigitalOcean from $50.00 to $40.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. The Goldman Sachs Group cut their price objective on DigitalOcean from $46.00 to $41.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. 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 report on Wednesday, April 16th. Bank of America increased their price target on DigitalOcean from $28.00 to $31.00 and gave the stock an "underperform" rating in a research report on Wednesday, February 26th. Finally, Canaccord Genuity Group lowered their price target on shares of DigitalOcean from $50.00 to $45.00 and set a "buy" rating for the company in a research report on Monday, April 7th. One equities research analyst has rated the stock with a sell rating, seven have given a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $39.83.

DigitalOcean Price Performance

Shares of DOCN stock traded up $0.19 during trading hours on Friday, reaching $28.08. 1,401,731 shares of the company traded hands, compared to its average volume of 1,279,352. The firm has a 50-day moving average price of $29.12 and a 200 day moving average price of $34.43. The company has a market cap of $2.56 billion, a P/E ratio of 25.29, a P/E/G ratio of 2.00 and a beta of 1.79. DigitalOcean has a 12-month low of $25.45 and a 12-month high of $47.02.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 6th. The company reported $0.56 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.11. DigitalOcean had a net margin of 13.46% and a negative return on equity of 60.69%. The business had revenue of $210.70 million during the quarter, compared to analyst estimates of $208.63 million. During the same period in the prior year, the business posted $0.43 earnings per share. The company's revenue was up 14.1% on a year-over-year basis. Sell-side analysts predict that DigitalOcean will post 1.01 EPS for the current year.

Insiders Place Their Bets

In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total value of $96,111.97. Following the completion of the sale, the insider now directly owns 294,546 shares of the company's stock, valued at $8,179,542.42. This trade represents a 1.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.96% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in DigitalOcean by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 8,434,555 shares of the company's stock valued at $287,365,000 after acquiring an additional 117,133 shares during the last quarter. Fuller & Thaler Asset Management Inc. lifted its position in shares of DigitalOcean by 28.6% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 1,987,177 shares of the company's stock worth $66,352,000 after purchasing an additional 441,535 shares in the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in shares of DigitalOcean by 16.6% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company's stock valued at $55,500,000 after purchasing an additional 231,407 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of DigitalOcean by 6.2% in the fourth quarter. First Trust Advisors LP now owns 1,533,699 shares of the company's stock valued at $52,253,000 after purchasing an additional 89,349 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in DigitalOcean by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 1,473,421 shares of the company's stock worth $50,211,000 after buying an additional 9,088 shares during the period. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean Company Profile

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).