DigitalOcean (NYSE:DOCN) Upgraded by Morgan Stanley to Overweight Rating

DigitalOcean (NYSE:DOCN) was upgraded by analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a note issued to investors on Thursday,Benzinga reports. The brokerage presently has a $41.00 price objective on the stock, up from their prior price objective of $40.00. Morgan Stanley’s price objective would suggest a potential upside of 19.85% from the company’s previous close.

DOCN has been the topic of a number of other reports. Canaccord Genuity Group raised their price objective on shares of DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research note on Friday, October 4th. Barclays lifted their target price on DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research report on Friday, October 11th. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. JPMorgan Chase & Co. upped their target price on shares of DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research note on Friday, October 25th. Finally, Stifel Nicolaus boosted their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a report on Wednesday, December 18th. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus target price of $42.00.

DigitalOcean Stock Performance

NYSE:DOCN opened at $34.21 on Thursday. The firm’s fifty day moving average is $37.06 and its 200-day moving average is $37.21. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $44.80. The firm has a market cap of $3.16 billion, a P/E ratio of 40.25, a P/E/G ratio of 2.45 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data 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. The company had revenue of $198.50 million during the quarter, compared to analyst estimates of $196.64 million. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. DigitalOcean’s revenue for the quarter was up 12.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.17 EPS. As a group, sell-side analysts anticipate that DigitalOcean will post 1.01 earnings per share 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 on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following the transaction, the chief financial officer now owns 517,498 shares of the company’s stock, valued at $20,699,920. This represents a 2.36 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Bratin Saha sold 3,468 shares of DigitalOcean stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $38.18, for a total value of $132,408.24. Following the completion of the sale, the insider now directly owns 379,795 shares of the company’s stock, valued at approximately $14,500,573.10. This trade represents a 0.90 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 32,955 shares of company stock worth $1,258,373 over the last three months. 0.74% of the stock is currently owned by insiders.

Institutional Trading of DigitalOcean

Hedge funds and other institutional investors have recently modified their holdings of the business. Farther Finance Advisors LLC bought a new position in DigitalOcean in the 3rd quarter worth approximately $30,000. Advisors Asset Management Inc. lifted its position in shares of DigitalOcean by 150.4% during the third quarter. Advisors Asset Management Inc. now owns 974 shares of the company’s stock worth $39,000 after acquiring an additional 585 shares in the last quarter. Blue Trust Inc. boosted its holdings in shares of DigitalOcean by 380.6% in the third quarter. Blue Trust Inc. now owns 1,211 shares of the company’s stock worth $49,000 after acquiring an additional 959 shares during the period. JTC Employer Solutions Trustee Ltd purchased a new position in shares of DigitalOcean in the fourth quarter valued at $45,000. Finally, Nisa Investment Advisors LLC raised its stake in shares of DigitalOcean by 56.4% during the 3rd quarter. Nisa Investment Advisors LLC now owns 1,340 shares of the company’s stock valued at $54,000 after purchasing an additional 483 shares during the period. Institutional investors 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).