DigitalOcean (NYSE:DOCN) Stock Gets Price Target Reduction from Citigroup

DigitalOcean (NYSE:DOCN) had its price objective cut by Citigroup from $190.00 to $160.00 in a research note released on Wednesday,Benzinga reports. They currently have a buy rating on the stock.

DOCN has been the topic of a number of other research reports. William Blair restated an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Canaccord Genuity Group reaffirmed a “buy” rating and set a $200.00 price objective on shares of DigitalOcean in a research report on Friday, July 10th. KeyCorp reiterated an “overweight” rating on shares of DigitalOcean in a research note on Tuesday, October 13th. Robert W. Baird began coverage on shares of DigitalOcean in a report on Tuesday, July 21st. They issued an “outperform” rating and a $165.00 target price on the stock. Finally, Morgan Stanley dropped their target price on shares of DigitalOcean from $175.00 to $150.00 and set an “overweight” rating for the company in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, DigitalOcean has an average rating of “Moderate Buy” and a consensus target price of $141.06.

DigitalOcean Price Performance

NYSE:DOCN traded up $1.53 during trading hours on Wednesday, reaching $72.23. 7,968,377 shares of the company were exchanged, compared to its average volume of 2,889,268. The company has a market capitalization of $7.54 billion, a P/E ratio of 233.00, a P/E/G ratio of 78.28 and a beta of 1.69. DigitalOcean has a 1-year low of $41.96 and a 1-year high of $187.50. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31. The business has a 50 day moving average of $116.36 and a 200 day moving average of $111.68.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.13. The firm had revenue of $321.19 million during the quarter, compared to analysts’ expectations of $306.74 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The company’s quarterly revenue was up 39.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.54 EPS. Research analysts forecast that DigitalOcean will post 0.62 EPS for the current year.

Insider Transactions at DigitalOcean

In other news, CAO Cherie Barrett sold 4,456 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $132.37, for a total value of $589,840.72. Following the completion of the transaction, the chief accounting officer owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. This represents a 6.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the completion of the sale, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. The trade was a 1.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 18,441 shares of company stock worth $2,068,475. Company insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Aberdeen Group plc acquired a new stake in DigitalOcean in the third quarter valued at approximately $12,046,000. Allworth Financial LP increased its holdings in shares of DigitalOcean by 241.9% during the third quarter. Allworth Financial LP now owns 2,014 shares of the company’s stock worth $269,000 after buying an additional 1,425 shares in the last quarter. Eurizon Capital SGR S.p.A. bought a new position in shares of DigitalOcean in the 3rd quarter valued at $77,000. New Mexico Educational Retirement Board lifted its stake in shares of DigitalOcean by 20.6% in the 3rd quarter. New Mexico Educational Retirement Board now owns 20,500 shares of the company’s stock valued at $2,734,000 after acquiring an additional 3,500 shares during the last quarter. Finally, Bingham Private Wealth LLC boosted its holdings in shares of DigitalOcean by 48.5% during the 3rd quarter. Bingham Private Wealth LLC now owns 1,964 shares of the company’s stock valued at $262,000 after acquiring an additional 641 shares in the last quarter. 49.77% of the stock is owned by institutional investors.

Key Stories Impacting DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean announced a collaboration with Box, which could expand the reach of its cloud services. The announcement provides no further details in the supplied headline. DigitalOcean announces collaboration with Box
• Positive Sentiment: Earlier coverage pointed to higher guidance and AI revenue growth as reasons for investor optimism. DigitalOcean Stock Jumps On Higher Guidance And AI Revenue Growth
• Neutral Sentiment: Goldman Sachs lowered its price target from $178 to $156 but kept a Buy rating, signaling continued optimism alongside a more cautious valuation. Goldman Sachs price-target update
• Negative Sentiment: UBS, Canaccord Genuity and Citigroup were reported to have cut their price targets or issued a more pessimistic outlook, adding pressure to sentiment. Canaccord nevertheless maintained a Buy rating. UBS Group price-target cut Canaccord Genuity price-target cut Citigroup forecast
• Negative Sentiment: Coverage also highlighted a $1 billion offering and argued DOCN could be substantially below fair value after its results. The offering may raise concerns about financing and potential dilution. DigitalOcean Holdings Could Be 62% Below Fair Value Following Results And $1b Offering

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud computing company that provides infrastructure and developer-focused services for startups, small and medium-sized businesses, and individual developers. Its platform is designed to simplify the deployment, management, and scaling of applications without requiring customers to build and operate extensive in-house infrastructure.

The company’s offerings include Droplets, its virtual machine service; managed Kubernetes; managed databases; object and block storage; networking tools; and application deployment services through App Platform.