DigitalOcean (NYSE:DOCN) Reaches New 12-Month High on Analyst Upgrade

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) hit a new 52-week high during trading on Friday after Barclays raised their price target on the stock from $38.00 to $48.00. Barclays currently has an overweight rating on the stock. DigitalOcean traded as high as $44.36 and last traded at $43.82, with a volume of 65806 shares. The stock had previously closed at $43.54.

A number of other equities analysts have also recently issued reports on the company. UBS Group dropped their target price on DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a report on Friday, August 9th. Stifel Nicolaus increased their price objective on DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a research note on Friday, August 9th. Piper Sandler reduced their target price on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a research note on Monday, July 15th. Finally, Canaccord Genuity Group increased their target price on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, October 4th. Five analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, DigitalOcean currently has an average rating of “Moderate Buy” and an average price target of $39.44.

Institutional Trading of DigitalOcean

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in DigitalOcean by 11.5% during the 1st quarter. Vanguard Group Inc. now owns 6,728,563 shares of the company’s stock worth $256,897,000 after purchasing an additional 696,426 shares during the last quarter. Van Berkom & Associates Inc. raised its stake in shares of DigitalOcean by 1.6% during the second quarter. Van Berkom & Associates Inc. now owns 1,273,103 shares of the company’s stock worth $44,240,000 after buying an additional 19,731 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in DigitalOcean by 27.9% in the second quarter. Principal Financial Group Inc. now owns 1,178,848 shares of the company’s stock valued at $40,965,000 after buying an additional 257,229 shares during the period. Dimensional Fund Advisors LP boosted its stake in DigitalOcean by 23.4% in the second 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 last quarter. Finally, Jacobs Levy Equity Management Inc. grew its holdings in DigitalOcean by 8.0% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 864,514 shares of the company’s stock worth $33,007,000 after acquiring an additional 63,771 shares during the period. 49.77% of the stock is owned by institutional investors.

DigitalOcean Stock Performance

The firm’s 50-day simple moving average is $38.09 and its 200 day simple moving average is $36.09. The company has a market cap of $4.05 billion, a P/E ratio of 61.07, a PEG ratio of 3.38 and a beta of 1.83.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Thursday, August 8th. The company reported $0.48 EPS for the quarter, beating analysts’ consensus estimates of $0.39 by $0.09. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. The business had revenue of $192.00 million during the quarter, compared to the consensus estimate of $188.63 million. During the same quarter in the prior year, the company posted $0.11 earnings per share. The firm’s revenue was up 13.1% on a year-over-year basis. As a group, research analysts forecast that DigitalOcean Holdings, Inc. will post 0.86 earnings per share for the current year.

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).