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

Key Points

• Oppenheimer raised its price target on DigitalOcean to $115 from $100 and maintained an "Outperform" rating, implying roughly a 16.2% upside from current levels.
• Multiple firms have also lifted targets recently, but MarketBeat's consensus remains a "Moderate Buy" with a lower average price target of $82.23, highlighting differing analyst views despite the upgrade momentum.
• Insiders including the CAO and CFO sold shares in March, cutting their holdings; insiders now own just 0.74% of the company, which may concern some investors.

DigitalOcean (NYSE:DOCN - Get Free Report) had its price target boosted by research analysts at Oppenheimer from $100.00 to $115.00 in a research note issued on Tuesday,Benzinga reports. The firm currently has an "outperform" rating on the stock. Oppenheimer's price objective indicates a potential upside of 16.18% from the company's current price.

DOCN has been the topic of a number of other research reports. Piper Sandler raised their price target on DigitalOcean from $67.00 to $98.00 and gave the company a "neutral" rating in a research report on Tuesday, April 7th. Barclays raised their price target on DigitalOcean from $69.00 to $105.00 and gave the company an "overweight" rating in a research report on Monday, April 20th. Citizens Jmp raised their price target on DigitalOcean from $83.00 to $105.00 and gave the company a "market outperform" rating in a research report on Thursday, March 26th. Bank of America raised their price target on DigitalOcean from $103.00 to $107.00 and gave the company a "buy" rating in a research report on Thursday, April 9th. Finally, UBS Group raised their price target on DigitalOcean from $62.00 to $97.00 and gave the company a "neutral" rating in a research report on Tuesday, April 21st. Nine analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, DigitalOcean has a consensus rating of "Moderate Buy" and a consensus price target of $82.23.

DigitalOcean Stock Up 4.0%

NYSE DOCN opened at $98.98 on Tuesday. The stock's 50-day simple moving average is $76.28 and its two-hundred day simple moving average is $58.67. DigitalOcean has a twelve month low of $25.56 and a twelve month high of $99.23. The company has a market capitalization of $9.11 billion, a price-to-earnings ratio of 39.12 and a beta of 1.43.

Insider Activity

In other news, CAO Cherie Barrett sold 22,000 shares of DigitalOcean stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $54.77, for a total value of $1,204,940.00. Following the transaction, the chief accounting officer owned 62,469 shares in the company, valued at approximately $3,421,427.13. The trade was a 26.05% 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. Also, CFO Matt Steinfort sold 20,000 shares of DigitalOcean stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the completion of the transaction, the chief financial officer owned 545,916 shares in the company, valued at approximately $30,243,746.40. This represents a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.74% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of DOCN. Banque Cantonale Vaudoise purchased a new stake in shares of DigitalOcean during the first quarter worth about $33,000. Huntington National Bank boosted its holdings in shares of DigitalOcean by 638.3% during the fourth quarter. Huntington National Bank now owns 598 shares of the company's stock worth $29,000 after purchasing an additional 517 shares during the period. NBC Securities Inc. purchased a new position in DigitalOcean during the 4th quarter valued at about $32,000. Allworth Financial LP increased its holdings in DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after purchasing an additional 255 shares during the period. Finally, Transamerica Financial Advisors LLC increased its holdings in DigitalOcean by 417.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company's stock valued at $38,000 after purchasing an additional 631 shares during the period. Hedge funds and other institutional investors own 49.77% of the company's stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean's platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.

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