DigitalOcean (NYSE:DOCN) Raised to “Hold” at Cantor Fitzgerald

DigitalOcean (NYSE:DOCN) was upgraded by equities researchers at Cantor Fitzgerald to a “hold” rating in a report issued on Thursday, Marketbeat reports. The firm currently has a $39.00 target price on the stock. Cantor Fitzgerald’s target price points to a potential upside of 8.04% from the stock’s previous close.

A number of other research firms have also issued reports on DOCN. JPMorgan Chase & Co. lifted 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. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Morgan Stanley upgraded shares of 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 note on Thursday. Stifel Nicolaus lifted their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. Finally, Barclays raised their price objective on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th. Six investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $41.70.

DigitalOcean Price Performance

NYSE DOCN opened at $36.10 on Thursday. The company has a market cap of $3.33 billion, a P/E ratio of 42.47, a P/E/G ratio of 2.47 and a beta of 1.78. DigitalOcean has a 1-year low of $26.63 and a 1-year high of $44.80. The stock has a 50-day moving average of $36.85 and a two-hundred day moving average of $37.18.

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

Insiders Place Their Bets

In other DigitalOcean news, insider Bratin Saha sold 3,468 shares of the stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $38.18, for a total value of $132,408.24. Following the sale, the insider now directly owns 379,795 shares of the company’s stock, valued at $14,500,573.10. This trade represents a 0.90 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Matt Steinfort sold 12,498 shares of the business’s stock in a transaction that occurred on 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 owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. This represents a 2.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 32,955 shares of company stock worth $1,258,373 in the last 90 days. 0.74% of the stock is owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently modified their holdings of the stock. 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 valued at $25,000 after buying an additional 570 shares in the last quarter. Hennion & Walsh Asset Management Inc. raised its holdings in shares of DigitalOcean by 20.2% during the 4th quarter. Hennion & Walsh Asset Management Inc. now owns 11,845 shares of the company’s stock valued at $404,000 after purchasing an additional 1,990 shares in the last quarter. JTC Employer Solutions Trustee Ltd acquired a new stake in DigitalOcean in the 4th quarter worth approximately $45,000. Nordea Investment Management AB boosted its holdings in DigitalOcean by 4.5% during the fourth quarter. Nordea Investment Management AB now owns 267,244 shares of the company’s stock valued at $9,196,000 after acquiring an additional 11,481 shares during the period. Finally, Principal Financial Group Inc. increased its position in DigitalOcean by 10.4% in the 3rd quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company’s stock worth $52,568,000 after buying an additional 122,651 shares during the period. 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).