DigitalOcean (NYSE:DOCN) Price Target Raised to $49.00

Key Points

• Canaccord Genuity Group raised its price target for DigitalOcean (NYSE:DOCN) from $45.00 to $49.00, indicating a potential upside of 34.03% from the previous close.
• DigitalOcean reported a quarterly earnings of $0.59 per share, exceeding analysts' expectations of $0.47, along with a year-over-year revenue growth of 13.6%.
• The stock is currently rated as a "buy" by seven analysts, while the average consensus target price stands at $41.45.

DigitalOcean (NYSE:DOCN - Get Free Report) had its target price raised by stock analysts at Canaccord Genuity Group from $45.00 to $49.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Canaccord Genuity Group's target price suggests a potential upside of 50.56% from the stock's current price.

DOCN has been the subject of several other reports. The Goldman Sachs Group lowered their price objective on shares of DigitalOcean from $46.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. Needham & Company LLC reiterated a "hold" rating on shares of DigitalOcean in a report on Tuesday, May 6th. Barclays raised their target price on DigitalOcean from $38.00 to $40.00 and gave the stock an "overweight" rating in a research report on Wednesday. Stifel Nicolaus set a $36.00 price objective on shares of DigitalOcean in a research report on Tuesday. Finally, Wall Street Zen raised DigitalOcean from a "hold" rating to a "buy" rating in a research note on Sunday, June 29th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $41.45.

DigitalOcean Stock Down 5.2%

Shares of DOCN stock traded down $1.79 during trading on Wednesday, reaching $32.55. 1,366,182 shares of the company's stock were exchanged, compared to its average volume of 1,570,271. The firm's fifty day moving average price is $28.87 and its 200-day moving average price is $32.95. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $47.02. The stock has a market capitalization of $2.96 billion, a PE ratio of 25.11, a PEG ratio of 2.67 and a beta of 1.75.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.47 by $0.12. The company had revenue of $218.70 million during the quarter, compared to analysts' expectations of $216.62 million. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%. The business's revenue was up 13.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.48 earnings per share. As a group, analysts anticipate that DigitalOcean will post 1.01 EPS for the current fiscal 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 shares were sold at an average price of $27.77, for a total value of $96,111.97. Following the transaction, the insider directly owned 294,546 shares of the company's stock, valued at approximately $8,179,542.42. This trade represents a 1.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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. CX Institutional grew its position in DigitalOcean by 780.5% during the second quarter. CX Institutional now owns 1,039 shares of the company's stock valued at $30,000 after buying an additional 921 shares during the period. GAMMA Investing LLC raised its stake in shares of DigitalOcean by 336.1% during the 1st quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock valued at $36,000 after purchasing an additional 820 shares during the period. Farther Finance Advisors LLC lifted its holdings in shares of DigitalOcean by 135,100.0% in the first quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company's stock worth $46,000 after buying an additional 1,351 shares in the last quarter. SVB Wealth LLC purchased a new position in DigitalOcean during the first quarter valued at approximately $48,000. Finally, Advisors Asset Management Inc. lifted its stake in DigitalOcean by 39.6% in the 1st quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company's stock worth $74,000 after purchasing an additional 632 shares in the last quarter. Institutional investors 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).