DigitalOcean (NYSE:DOCN) Now Covered by Citigroup

Citigroup started coverage on shares of DigitalOcean (NYSE:DOCN) in a research note issued to investors on Friday morning, MarketBeat reports. The brokerage issued a buy rating and a $45.00 price target on the stock.

A number of other equities analysts also recently commented on DOCN. Cantor Fitzgerald initiated coverage on DigitalOcean in a report on Friday, January 17th. They issued a “neutral” rating and a $39.00 price objective on the stock. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. JPMorgan Chase & Co. raised their target price on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Barclays raised 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. Finally, Morgan Stanley raised DigitalOcean from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $40.00 to $41.00 in a research report on Thursday, January 16th. Six investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $42.00.

DigitalOcean Trading Up 3.6 %

Shares of DOCN stock opened at $40.14 on Friday. DigitalOcean has a 1-year low of $26.63 and a 1-year high of $44.80. The company has a market capitalization of $3.70 billion, a price-to-earnings ratio of 47.22, a P/E/G ratio of 2.77 and a beta of 1.78. The stock’s fifty day simple moving average is $36.84 and its 200-day simple moving average is $37.30.

DigitalOcean (NYSE:DOCN) last released its 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 during the quarter, compared to the consensus estimate of $196.64 million. During the same quarter in the prior year, the firm earned $0.17 EPS. The company’s revenue was up 12.1% compared to the same quarter last year. On average, sell-side analysts predict that DigitalOcean will post 1.01 EPS for the current year.

Insider Activity

In other DigitalOcean 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 value of $499,920.00. Following the completion of the transaction, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. The trade was a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Bratin Saha sold 16,989 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $36.85, for a total transaction of $626,044.65. Following the completion of the transaction, the insider now owns 390,296 shares of the company’s stock, valued at $14,382,407.60. This trade represents a 4.17 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 37,244 shares of company stock worth $1,416,208. Corporate insiders own 0.74% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently made changes to their positions in DOCN. Versor Investments LP acquired a new stake in shares of DigitalOcean in the third quarter valued at approximately $751,000. Public Sector Pension Investment Board bought a new stake in DigitalOcean during the second quarter worth $4,108,000. University of Texas Texas AM Investment Management Co. acquired a new stake in DigitalOcean in the second quarter valued at about $11,712,000. FORA Capital LLC bought a new stake in shares of DigitalOcean during the 3rd quarter valued at approximately $1,149,000. Finally, Victory Capital Management Inc. increased its position in DigitalOcean by 79.8% during the 3rd quarter. Victory Capital Management Inc. now owns 31,169 shares of the company’s stock worth $1,259,000 after purchasing an additional 13,837 shares in 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).