DigitalOcean (NYSE:DOCN) Stock Price Expected to Rise, Canaccord Genuity Group Analyst Says

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 lifted by analysts at Canaccord Genuity Group from $45.00 to $49.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Canaccord Genuity Group's price objective would indicate a potential upside of 48.39% from the stock's previous close.

Several other research analysts have also weighed in on DOCN. Citigroup lowered their price objective on shares of DigitalOcean from $50.00 to $40.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. Wall Street Zen raised DigitalOcean from a "hold" rating to a "buy" rating in a report on Sunday, June 29th. Stifel Nicolaus set a $36.00 price target on shares of DigitalOcean in a report on Tuesday, August 5th. Needham & Company LLC restated a "hold" rating on shares of DigitalOcean in a report on Tuesday, May 6th. Finally, Morgan Stanley upped their target price on DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and seven have issued a buy rating to the company. Based on data from MarketBeat.com, DigitalOcean currently has a consensus rating of "Hold" and an average target price of $41.45.

DigitalOcean Stock Down 3.8%

Shares of NYSE:DOCN traded down $1.31 during midday trading on Wednesday, reaching $33.02. 2,592,369 shares of the company were exchanged, compared to its average volume of 2,506,635. The firm has a market cap of $3.01 billion, a PE ratio of 25.40, a P/E/G ratio of 2.36 and a beta of 1.75. DigitalOcean has a fifty-two week low of $25.45 and a fifty-two week high of $47.02. The stock has a fifty day simple moving average of $28.97 and a two-hundred day simple moving average of $32.85.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.47 by $0.12. The firm had revenue of $218.70 million for the quarter, compared to analyst estimates of $216.62 million. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The company's revenue was up 13.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.48 EPS. As a group, analysts forecast that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In other news, insider Bratin Saha sold 3,461 shares of the business's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the completion of the transaction, the insider owned 294,546 shares of the company's stock, valued at approximately $8,179,542.42. The trade was a 1.16% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.74% of the company's stock.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors have recently added to or reduced their stakes in DOCN. CX Institutional increased its holdings in DigitalOcean by 780.5% in the 2nd quarter. CX Institutional now owns 1,039 shares of the company's stock worth $30,000 after purchasing an additional 921 shares in the last quarter. GAMMA Investing LLC grew its stake in DigitalOcean by 336.1% during the first quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock worth $36,000 after purchasing an additional 820 shares during the period. Farther Finance Advisors LLC lifted its position in shares of DigitalOcean by 135,100.0% during the 1st quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company's stock valued at $46,000 after acquiring an additional 1,351 shares during the period. SVB Wealth LLC acquired a new stake in DigitalOcean in the first quarter worth $48,000. Finally, Advisors Asset Management Inc. increased its position in DigitalOcean by 39.6% in the 1st quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company's stock valued at $74,000 after buying an additional 632 shares in the last quarter. 49.77% of the stock is currently 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).