DigitalOcean (NYSE:DOCN) Upgraded by Wall Street Zen to "Buy" Rating

DigitalOcean (NYSE:DOCN - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Sunday.

Several other research analysts have also issued reports on the company. The Goldman Sachs Group dropped their target price on DigitalOcean from $46.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. Canaccord Genuity Group dropped their price objective on DigitalOcean from $50.00 to $45.00 and set a "buy" rating for the company in a report on Monday, April 7th. Barclays reduced their target price on DigitalOcean from $48.00 to $38.00 and set an "overweight" rating on the stock in a research note on Monday, April 21st. Citigroup decreased their target price on DigitalOcean from $50.00 to $40.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. Finally, Stifel Nicolaus cut their price target on shares of DigitalOcean from $40.00 to $33.00 and set a "hold" rating on the stock in a report on Monday, April 7th. One research analyst has rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $39.83.

DigitalOcean Price Performance

Shares of DigitalOcean stock traded up $0.37 on Friday, reaching $28.39. The company had a trading volume of 1,821,095 shares, compared to its average volume of 1,297,149. The firm has a market cap of $2.58 billion, a price-to-earnings ratio of 25.70, a P/E/G ratio of 2.09 and a beta of 1.76. The firm's 50-day moving average price is $29.23 and its two-hundred day moving average price is $34.02. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $47.02.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings data on Tuesday, May 6th. The company reported $0.56 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.11. The business had revenue of $210.70 million for the quarter, compared to analysts' expectations of $208.63 million. DigitalOcean had a net margin of 13.46% and a negative return on equity of 60.69%. The business's revenue was up 14.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.43 earnings per share. As a group, analysts anticipate that DigitalOcean will post 1.01 EPS for the current year.

Insiders Place Their Bets

In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of the stock in a transaction dated 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 in the company, valued at $8,179,542.42. This represents a 1.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.74% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DigitalOcean

Hedge funds have recently modified their holdings of the business. GAMMA Investing LLC boosted its position 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 in the last quarter. Farther Finance Advisors LLC lifted its stake 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 worth $46,000 after purchasing an additional 1,351 shares during the last quarter. SVB Wealth LLC bought a new stake in DigitalOcean during the first quarter valued at about $48,000. SBI Securities Co. Ltd. purchased a new position in DigitalOcean in the fourth quarter valued at about $66,000. Finally, Advisors Asset Management Inc. raised its holdings in DigitalOcean by 39.6% in the first 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. Hedge funds and other institutional investors own 49.77% of the company's stock.

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).