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

DigitalOcean (NYSE:DOCN) had its price objective hoisted by JMP Securities from $47.00 to $55.00 in a note issued to investors on Monday,Benzinga reports. The firm currently has a “market outperform” rating on the stock. JMP Securities’ target price suggests a potential upside of 30.96% from the company’s current price.

Several other research firms have also recently commented on DOCN. Cantor Fitzgerald assumed coverage on DigitalOcean in a research note on Friday, January 17th. They set a “neutral” rating and a $39.00 target price for the company. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Morgan Stanley raised shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $40.00 to $41.00 in a research report on Thursday, January 16th. Barclays increased their price target on shares of DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, October 11th. Finally, JPMorgan Chase & Co. boosted their price objective on 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 six have issued a buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $42.73.

DigitalOcean Price Performance

Shares of DOCN stock opened at $42.00 on Monday. The company’s fifty day moving average price is $36.99 and its two-hundred day moving average price is $37.48. The firm has a market capitalization of $3.88 billion, a P/E ratio of 49.41, a P/E/G ratio of 2.77 and a beta of 1.78. DigitalOcean has a 12 month low of $26.63 and a 12 month high of $44.80.

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

Insider Buying and Selling at DigitalOcean

In other news, CFO Matt Steinfort sold 12,498 shares of the company’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 completion of the transaction, the chief financial officer now owns 517,498 shares in the company, valued at approximately $20,699,920. This represents a 2.36 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Bratin Saha sold 4,289 shares of DigitalOcean stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total transaction of $157,835.20. Following the completion of the sale, the insider now owns 372,762 shares in the company, valued at approximately $13,717,641.60. This represents a 1.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 37,244 shares of company stock worth $1,416,208 over the last ninety days. Company insiders own 0.74% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Several large investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP increased its position in DigitalOcean by 23.4% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company’s stock valued at $37,512,000 after acquiring an additional 205,007 shares during the period. Hsbc Holdings PLC lifted its holdings in DigitalOcean by 47.3% in the second quarter. Hsbc Holdings PLC now owns 10,022 shares of the company’s stock worth $343,000 after purchasing an additional 3,219 shares during the period. Sei Investments Co. grew its position in DigitalOcean by 1.5% in the 2nd quarter. Sei Investments Co. now owns 30,834 shares of the company’s stock valued at $1,071,000 after buying an additional 468 shares in the last quarter. Thrivent Financial for Lutherans acquired a new position in DigitalOcean during the 2nd quarter valued at about $1,550,000. Finally, The Manufacturers Life Insurance Company raised its position in shares of DigitalOcean by 8.0% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 38,344 shares of the company’s stock worth $1,332,000 after buying an additional 2,830 shares in the last quarter. Institutional investors and hedge funds 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).