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

DigitalOcean (NYSE:DOCN) had its price target boosted by analysts at Barclays from $40.00 to $49.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Barclays‘s price objective would indicate a potential upside of 3.59% from the stock’s current price.

A number of other equities research analysts have also issued reports on the stock. Morgan Stanley boosted their price target on shares of DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a report on Wednesday, August 6th. Stifel Nicolaus set a $36.00 price target on DigitalOcean in a research note on Tuesday, August 5th. Bank of America raised shares of DigitalOcean from an “underperform” rating to a “buy” rating and boosted their target price for the stock from $34.00 to $60.00 in a research report on Thursday. Canaccord Genuity Group raised their price target on shares of DigitalOcean from $49.00 to $55.00 and gave the company a “buy” rating in a report on Thursday, October 9th. Finally, Wall Street Zen raised DigitalOcean from a “hold” rating to a “buy” rating in a research report on Saturday, November 1st. Seven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $46.18.

DigitalOcean Stock Performance

DigitalOcean stock opened at $47.30 on Thursday. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $47.52. The firm’s 50-day moving average is $37.42 and its 200-day moving average is $32.25. The company has a market cap of $4.31 billion, a P/E ratio of 36.97, a PEG ratio of 2.21 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.47 by $0.12. The business had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%.The business’s revenue for the quarter was up 13.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.48 EPS. As a group, sell-side analysts predict that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Activity

In other news, insider Bratin Saha sold 13,010 shares of DigitalOcean stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total transaction of $414,628.70. Following the sale, the insider directly owned 269,465 shares in the company, valued at approximately $8,587,849.55. The trade was a 4.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in DigitalOcean during the 2nd quarter worth approximately $22,633,000. Fuller & Thaler Asset Management Inc. raised its stake in DigitalOcean by 28.6% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 1,987,177 shares of the company’s stock worth $66,352,000 after buying an additional 441,535 shares during the period. Lazard Asset Management LLC lifted its holdings in DigitalOcean by 34.5% during the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock worth $47,430,000 after acquiring an additional 426,264 shares in the last quarter. Van Berkom & Associates Inc. raised its position in shares of DigitalOcean by 33.1% during the third quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock worth $53,460,000 after purchasing an additional 389,161 shares during the period. Finally, Mizuho Markets Americas LLC acquired a new position in shares of DigitalOcean in the third quarter valued at approximately $12,122,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

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).