DigitalOcean (NYSE:DOCN) Upgraded at Morgan Stanley

Morgan Stanley upgraded shares of DigitalOcean (NYSE:DOCN) from an equal weight rating to an overweight rating in a research note released on Thursday morning, MarketBeat reports. They currently have $41.00 price target on the stock, up from their prior price target of $40.00.

DOCN has been the topic of several other research reports. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Stifel Nicolaus raised their price objective on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a report on Wednesday, December 18th. Barclays lifted their price objective on DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research note on Friday, October 11th. Canaccord Genuity Group upped their price objective on DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, October 4th. Finally, JPMorgan Chase & Co. increased their target price on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Six investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, DigitalOcean currently has an average rating of “Hold” and an average price target of $41.70.

DigitalOcean Trading Up 2.3 %

Shares of DOCN opened at $36.10 on Thursday. The company has a market cap of $3.33 billion, a price-to-earnings ratio of 42.47, a PEG ratio of 2.47 and a beta of 1.78. The company’s fifty day simple moving average is $36.85 and its 200 day simple moving average is $37.20. DigitalOcean has a 1-year low of $26.63 and a 1-year high of $44.80.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Monday, November 4th. The company reported $0.52 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.12. The company had revenue of $198.50 million for the quarter, compared to analyst estimates of $196.64 million. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The firm’s quarterly revenue was up 12.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.17 earnings per share. As a group, research analysts forecast that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In other news, CFO Matt Steinfort sold 12,498 shares of the business’s stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total transaction of $499,920.00. Following the transaction, the chief financial officer now owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. The trade was a 2.36 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Bratin Saha sold 16,989 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $36.85, for a total value of $626,044.65. Following the completion of the transaction, the insider now owns 390,296 shares in the company, valued at $14,382,407.60. This represents a 4.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 32,955 shares of company stock worth $1,258,373 over the last three months. Corporate insiders own 0.74% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors have recently bought and sold shares of DOCN. Jacobs Levy Equity Management Inc. increased its stake in shares of DigitalOcean by 32.8% during the third quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company’s stock worth $56,449,000 after acquiring an additional 345,119 shares during the period. University of Texas Texas AM Investment Management Co. acquired a new stake in DigitalOcean during the second quarter worth approximately $11,712,000. Renaissance Technologies LLC boosted its stake in DigitalOcean by 152.6% in the 2nd quarter. Renaissance Technologies LLC now owns 375,600 shares of the company’s stock worth $13,052,000 after buying an additional 226,900 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in DigitalOcean by 23.4% during the second quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company’s stock worth $37,512,000 after purchasing an additional 205,007 shares during the period. Finally, Principal Financial Group Inc. boosted its holdings in DigitalOcean by 10.4% in the third quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company’s stock valued at $52,568,000 after acquiring an additional 122,651 shares during the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

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).