Barclays Forecasts Strong Price Appreciation for DigitalOcean (NYSE:DOCN) Stock

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 target price increased by Barclays from $38.00 to $40.00 in a report published on Wednesday,Benzinga reports. Barclays currently has an overweight rating on the stock.

Other equities analysts have also recently issued reports about the stock. UBS Group dropped their price objective on shares of DigitalOcean from $44.00 to $32.00 and set a "neutral" rating on the stock in a research note on Thursday, May 8th. Wall Street Zen upgraded shares of DigitalOcean from a "hold" rating to a "buy" rating in a research note on Sunday, June 29th. The Goldman Sachs Group lowered their price objective on DigitalOcean from $46.00 to $41.00 and set a "buy" rating on the stock in a report on Wednesday, May 7th. Morgan Stanley dropped their target price on DigitalOcean from $52.00 to $41.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 16th. Finally, Stifel Nicolaus set a $36.00 price target on DigitalOcean in a report on Tuesday. One research analyst has rated the stock with a sell rating, five have issued a hold rating and seven have given a buy rating to the company's stock. According to MarketBeat.com, DigitalOcean presently has a consensus rating of "Hold" and an average target price of $41.45.

DigitalOcean Trading Down 5.1%

Shares of NYSE DOCN traded down $1.76 during trading hours on Wednesday, reaching $32.58. The stock had a trading volume of 579,987 shares, compared to its average volume of 1,564,223. The firm has a market cap of $2.97 billion, a price-to-earnings ratio of 25.00, a PEG ratio of 2.67 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 firm has a 50-day moving average of $28.87 and a 200-day moving average of $32.95.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, beating 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 business had revenue of $218.70 million during the quarter, compared to analysts' expectations of $216.62 million. During the same period in the prior year, the company earned $0.48 earnings per share. The business's revenue was up 13.6% compared to the same quarter last year. On average, equities analysts predict that DigitalOcean will post 1.01 EPS for the current year.

Insider Buying and Selling

In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of the 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 transaction, the insider owned 294,546 shares of the company's stock, valued at $8,179,542.42. This represents a 1.16% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On DigitalOcean

Large investors have recently added to or reduced their stakes in the business. CX Institutional raised its holdings in shares of 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 during the period. GAMMA Investing LLC boosted its stake in 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 acquiring an additional 820 shares during the last quarter. Farther Finance Advisors LLC raised its stake in DigitalOcean by 135,100.0% during the first quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company's stock valued at $46,000 after buying an additional 1,351 shares in the last quarter. SVB Wealth LLC bought a new position in shares of DigitalOcean in the 1st quarter worth about $48,000. Finally, Advisors Asset Management Inc. boosted its stake in DigitalOcean by 39.6% in the first quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company's stock valued at $74,000 after acquiring an additional 632 shares during the period. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

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).