Morgan Stanley Upgrades DigitalOcean (NYSE:DOCN) to Overweight

DigitalOcean (NYSE:DOCN - Get Free Report) was upgraded by research analysts at Morgan Stanley from an "equal weight" rating to an "overweight" rating in a research report issued on Thursday, Marketbeat Ratings reports. The firm currently has a $41.00 target price on the stock, up from their previous target price of $40.00. Morgan Stanley's target price would indicate a potential upside of 16.02% from the company's current price.

Other research analysts have also issued research reports about the stock. Needham & Company LLC restated a "hold" rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Canaccord Genuity Group raised their target price on DigitalOcean from $42.00 to $48.00 and gave the stock a "buy" rating in a research note on Friday, October 4th. Barclays lifted their price target on DigitalOcean from $38.00 to $48.00 and gave the stock an "overweight" rating in a research report on Friday, October 11th. Stifel Nicolaus raised their price objective on DigitalOcean from $35.00 to $40.00 and gave the stock a "hold" rating in a research note on Wednesday, December 18th. Finally, JPMorgan Chase & Co. lifted their target price on DigitalOcean from $32.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, October 25th. Five research analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $42.00.

DigitalOcean Stock Up 3.2 %

Shares of DigitalOcean stock traded up $1.10 during trading on Thursday, reaching $35.34. The company's stock had a trading volume of 787,275 shares, compared to its average volume of 766,724. DigitalOcean has a 1-year low of $26.63 and a 1-year high of $44.80. The company has a 50-day simple moving average of $36.97 and a two-hundred day simple moving average of $37.19. The company has a market cap of $3.26 billion, a price-to-earnings ratio of 41.60, a P/E/G ratio of 2.47 and a beta of 1.78.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly 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 negative return on equity of 43.11% and a net margin of 10.86%. The business had revenue of $198.50 million during the quarter, compared to the consensus estimate of $196.64 million. During the same quarter last year, the company earned $0.17 earnings per share. The company's quarterly revenue was up 12.1% on a year-over-year basis. As a group, analysts anticipate that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Bratin Saha sold 3,468 shares of the stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $38.18, for a total transaction of $132,408.24. Following the sale, the insider now directly owns 379,795 shares of the company's stock, valued at approximately $14,500,573.10. This represents a 0.90 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Matt Steinfort sold 12,498 shares of DigitalOcean stock in a transaction on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total transaction of $499,920.00. Following the completion of 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 disclosure for this sale can be found here. Insiders have sold a total of 32,955 shares of company stock valued at $1,258,373 over the last ninety days. Company insiders own 0.74% of the company's stock.

Hedge Funds Weigh In On DigitalOcean

A number of large investors have recently bought and sold shares of the business. Harbor Investment Advisory LLC increased its position in shares of 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 buying an additional 570 shares in the last quarter. Hennion & Walsh Asset Management Inc. increased its holdings in DigitalOcean by 20.2% in the 4th quarter. Hennion & Walsh Asset Management Inc. now owns 11,845 shares of the company's stock worth $404,000 after acquiring an additional 1,990 shares in the last quarter. JTC Employer Solutions Trustee Ltd acquired a new position in DigitalOcean during the fourth quarter worth $45,000. Nordea Investment Management AB raised its position in DigitalOcean by 4.5% during the fourth quarter. Nordea Investment Management AB now owns 267,244 shares of the company's stock worth $9,196,000 after acquiring an additional 11,481 shares during the period. Finally, Principal Financial Group Inc. grew its position in shares of DigitalOcean by 10.4% in the third quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company's stock valued at $52,568,000 after purchasing 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).