DigitalOcean (NYSE:DOCN) Earns Buy Rating from Analysts at Citigroup

Investment analysts at Citigroup assumed coverage on shares of DigitalOcean (NYSE:DOCN - Get Free Report) in a research note issued on Friday, Marketbeat Ratings reports. The brokerage set a "buy" rating and a $45.00 price target on the stock. Citigroup's target price indicates a potential upside of 12.12% from the company's previous close.

Other analysts have also issued reports about the company. Needham & Company LLC reiterated a "hold" rating on shares of DigitalOcean in a report on Tuesday, November 5th. Morgan Stanley raised DigitalOcean from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $40.00 to $41.00 in a research note on Thursday, January 16th. Cantor Fitzgerald assumed coverage on DigitalOcean in a research note on Friday, January 17th. They issued a "neutral" rating and a $39.00 price target for the company. JPMorgan Chase & Co. increased their price objective on DigitalOcean from $32.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, October 25th. Finally, Canaccord Genuity Group lifted their target price 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. Six investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $42.00.

DigitalOcean Trading Up 3.6 %

NYSE:DOCN traded up $1.41 on Friday, hitting $40.14. 1,913,953 shares of the company's stock traded hands, compared to its average volume of 933,617. The company has a market cap of $3.70 billion, a PE ratio of 47.22, a price-to-earnings-growth ratio of 2.77 and a beta of 1.78. DigitalOcean has a 1 year low of $26.63 and a 1 year high of $44.80. The firm has a 50-day moving average price of $36.84 and a 200-day moving average price of $37.30.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings data on Monday, November 4th. The company reported $0.52 EPS for the quarter, beating analysts' consensus estimates 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 previous year, the firm posted $0.17 earnings per share. The firm's revenue was up 12.1% on a year-over-year basis. On average, research analysts forecast that DigitalOcean will post 1.01 EPS for the current fiscal year.

Insiders Place Their Bets

In other DigitalOcean news, CFO Matt Steinfort sold 12,498 shares of DigitalOcean 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 directly owns 517,498 shares of the company's stock, valued at $20,699,920. The trade was a 2.36 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Bratin Saha sold 3,468 shares of the stock in a transaction that occurred on Wednesday, December 18th. The shares were 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 $14,500,573.10. This represents a 0.90 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 37,244 shares of company stock valued at $1,416,208 in the last quarter. Insiders own 0.74% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in DOCN. BSW Wealth Partners lifted its position in DigitalOcean by 4.3% in the fourth quarter. BSW Wealth Partners now owns 14,556 shares of the company's stock worth $496,000 after purchasing an additional 600 shares during the period. Cherry Creek Investment Advisors Inc. raised its stake in shares of DigitalOcean by 17.3% in the 4th quarter. Cherry Creek Investment Advisors Inc. now owns 12,745 shares of the company's stock valued at $434,000 after buying an additional 1,880 shares in the last quarter. Pacer Advisors Inc. lifted its holdings in shares of DigitalOcean by 33.1% during the 4th quarter. Pacer Advisors Inc. now owns 5,712 shares of the company's stock worth $195,000 after acquiring an additional 1,419 shares during the period. KBC Group NV boosted its position in shares of DigitalOcean by 37.6% during the 4th quarter. KBC Group NV now owns 2,884 shares of the company's stock valued at $98,000 after acquiring an additional 788 shares in the last quarter. Finally, Harbor Investment Advisory LLC increased its stake in DigitalOcean by 380.0% in the fourth quarter. Harbor Investment Advisory LLC now owns 720 shares of the company's stock valued at $25,000 after acquiring an additional 570 shares during the period. 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).