Citigroup Initiates Coverage on DigitalOcean (NYSE:DOCN)

Equities researchers at Citigroup began coverage on shares of DigitalOcean (NYSE:DOCN) in a note issued to investors on Friday, Marketbeat Ratings reports. The firm set a “buy” rating and a $45.00 price target on the stock. Citigroup’s price target indicates a potential upside of 12.12% from the company’s previous close.

Other equities analysts have also recently issued research reports about the stock. Stifel Nicolaus raised their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research report on Wednesday, December 18th. Barclays lifted their target price on DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th. Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $40.00 to $41.00 in a report on Thursday, January 16th. Cantor Fitzgerald initiated coverage on DigitalOcean in a research note on Friday, January 17th. They issued a “neutral” rating and a $39.00 price objective for the company. Finally, Canaccord Genuity Group upped their target price on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, October 4th. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat, DigitalOcean has a consensus rating of “Moderate Buy” and an average price target of $42.00.

DigitalOcean Trading Up 3.6 %

Shares of NYSE DOCN opened at $40.14 on Friday. The stock has a fifty day simple moving average of $36.84 and a 200-day simple moving average of $37.33. DigitalOcean has a twelve month low of $26.63 and a twelve month high of $44.80. The stock has a market capitalization of $3.70 billion, a PE ratio of 47.22, a PEG ratio of 2.77 and a beta of 1.78.

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

Insider Buying and Selling at DigitalOcean

In related news, insider Bratin Saha sold 16,989 shares of the business’s stock in a transaction 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 sale, the insider now directly owns 390,296 shares of the company’s stock, valued at $14,382,407.60. The trade was a 4.17 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Matt Steinfort sold 12,498 shares of the firm’s stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total value of $499,920.00. Following the transaction, the chief financial officer now directly owns 517,498 shares in the company, valued at approximately $20,699,920. The trade was a 2.36 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 37,244 shares of company stock worth $1,416,208 over the last three months. Insiders own 0.74% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Several large investors have recently modified their holdings of the company. BSW Wealth Partners raised its position in DigitalOcean by 4.3% in the 4th quarter. BSW Wealth Partners now owns 14,556 shares of the company’s stock valued at $496,000 after purchasing an additional 600 shares during the last quarter. Cherry Creek Investment Advisors Inc. raised its holdings in shares of DigitalOcean by 17.3% in the fourth quarter. Cherry Creek Investment Advisors Inc. now owns 12,745 shares of the company’s stock valued at $434,000 after buying an additional 1,880 shares during the last quarter. Pacer Advisors Inc. raised its holdings in shares of DigitalOcean by 33.1% in the fourth quarter. Pacer Advisors Inc. now owns 5,712 shares of the company’s stock valued at $195,000 after buying an additional 1,419 shares during the last quarter. KBC Group NV boosted its stake in shares of DigitalOcean by 37.6% during the fourth quarter. KBC Group NV now owns 2,884 shares of the company’s stock worth $98,000 after buying an additional 788 shares during the period. Finally, Harbor Investment Advisory LLC grew its holdings in shares of DigitalOcean by 380.0% during the fourth quarter. Harbor Investment Advisory LLC now owns 720 shares of the company’s stock worth $25,000 after buying an additional 570 shares during the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

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).