Needham & Company LLC Reaffirms Hold Rating for DigitalOcean (NYSE:DOCN)

Needham & Company LLC reiterated their hold rating on shares of DigitalOcean (NYSE:DOCN) in a report published on Tuesday, Benzinga reports.

Other analysts have also recently issued reports about the stock. Barclays raised their price target on shares of DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a report on Friday, October 11th. UBS Group decreased their target price on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a research note on Friday, August 9th. Piper Sandler dropped their price target 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. Canaccord Genuity Group lifted their price objective on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, October 4th. Finally, Stifel Nicolaus upped their target price on DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a research report on Friday, August 9th. Five analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $40.56.

DigitalOcean Stock Performance

NYSE DOCN opened at $35.86 on Tuesday. The firm’s 50 day moving average price is $40.40 and its two-hundred day moving average price is $36.66. The stock has a market cap of $3.30 billion, a price-to-earnings ratio of 49.81, a PEG ratio of 3.24 and a beta of 1.83. DigitalOcean has a twelve month low of $23.65 and a twelve month high of $44.80.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Monday, November 4th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.12. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. The firm had revenue of $198.50 million for the quarter, compared to analyst estimates of $196.64 million. During the same period in the previous year, the firm earned $0.17 earnings per share. DigitalOcean’s quarterly revenue was up 12.1% on a year-over-year basis. On average, research analysts forecast that DigitalOcean will post 0.86 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in DigitalOcean by 11.5% during the first quarter. Vanguard Group Inc. now owns 6,728,563 shares of the company’s stock valued at $256,897,000 after purchasing an additional 696,426 shares during the last quarter. Principal Financial Group Inc. lifted its position in DigitalOcean by 10.4% during the 3rd quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company’s stock worth $52,568,000 after acquiring an additional 122,651 shares during the last quarter. Van Berkom & Associates Inc. boosted its holdings in DigitalOcean by 1.6% during the second quarter. Van Berkom & Associates Inc. now owns 1,273,103 shares of the company’s stock valued at $44,240,000 after acquiring an additional 19,731 shares during the period. Dimensional Fund Advisors LP boosted its holdings in DigitalOcean by 23.4% during 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 period. Finally, Jacobs Levy Equity Management Inc. increased its stake in shares of DigitalOcean by 8.0% in the first quarter. Jacobs Levy Equity Management Inc. now owns 864,514 shares of the company’s stock worth $33,007,000 after purchasing an additional 63,771 shares during the period. 49.77% of the stock is owned by institutional investors.

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).