Barclays Issues Positive Forecast for DigitalOcean (NYSE:DOCN) Stock Price

Key Points

• Barclays raised its price target for DigitalOcean (NYSE:DOCN) to $40.00, marking an increase from the previous target of $38.00 and suggesting an 11.39% potential upside.
• DigitalOcean has received mixed ratings from analysts, with a consensus rating of "Hold" and a consensus price target of $40.82, based on varying assessments from multiple firms.
• The company's recent earnings report showed a 14.1% increase in revenue year-over-year, with earnings per share beating analyst expectations.

DigitalOcean (NYSE:DOCN - Free Report) had its price target upped by Barclays from $38.00 to $40.00 in a report released on Wednesday morning,Benzinga reports. The firm currently has an overweight rating on the stock.

Several other equities research analysts also recently issued reports on the stock. Wall Street Zen upgraded shares of DigitalOcean from a "hold" rating to a "buy" rating in a research note on Sunday, June 29th. Citigroup cut their target price on shares of DigitalOcean from $50.00 to $40.00 and set a "buy" rating for the company in a research note on Wednesday, May 7th. Morgan Stanley cut their target price on shares of DigitalOcean from $52.00 to $41.00 and set an "overweight" rating for the company in a research note on Wednesday, April 16th. The Goldman Sachs Group cut their target price on shares of DigitalOcean from $46.00 to $41.00 and set a "buy" rating for the company in a research note on Wednesday, May 7th. Finally, Needham & Company LLC reiterated a "hold" rating on shares of DigitalOcean in a research note on Tuesday, May 6th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have given a buy rating to the company's stock. According to data from MarketBeat.com, DigitalOcean currently has a consensus rating of "Hold" and an average price target of $41.45.

DigitalOcean Trading Down 3.8%

Shares of DigitalOcean stock traded down $1.31 during trading hours on Wednesday, reaching $33.02. 2,592,369 shares of the company's stock were exchanged, compared to its average volume of 2,506,635. The company has a 50 day moving average of $28.97 and a two-hundred day moving average of $32.89. DigitalOcean has a fifty-two week low of $25.45 and a fifty-two week high of $47.02. The stock has a market cap of $3.01 billion, a P/E ratio of 22.33, a P/E/G ratio of 2.36 and a beta of 1.75.

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

Insider Activity at DigitalOcean

In other news, insider Bratin Saha sold 3,461 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $27.77, for a total transaction 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.74% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Police & Firemen s Retirement System of New Jersey increased its holdings in shares of DigitalOcean by 9.3% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 15,272 shares of the company's stock worth $436,000 after purchasing an additional 1,299 shares during the period. PNC Financial Services Group Inc. increased its stake in DigitalOcean by 6.5% in the second quarter. PNC Financial Services Group Inc. now owns 10,242 shares of the company's stock valued at $293,000 after acquiring an additional 628 shares during the last quarter. SBI Securities Co. Ltd. increased its stake in DigitalOcean by 188.1% in the second quarter. SBI Securities Co. Ltd. now owns 5,001 shares of the company's stock valued at $143,000 after acquiring an additional 3,265 shares during the last quarter. Campbell & CO Investment Adviser LLC bought a new position in DigitalOcean in the second quarter valued at approximately $1,116,000. Finally, Connor Clark & Lunn Investment Management Ltd. increased its stake in DigitalOcean by 48.1% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 90,147 shares of the company's stock valued at $2,575,000 after acquiring an additional 29,261 shares during the last quarter. 49.77% of the stock is owned by institutional investors.

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).