Bank of America Forecasts Strong Price Appreciation for DigitalOcean (NYSE:DOCN) Stock

DigitalOcean (NYSE:DOCN - Get Free Report) had its price objective raised by analysts at Bank of America from $28.00 to $31.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm currently has an "underperform" rating on the stock. Bank of America's price target points to a potential downside of 27.47% from the company's current price.

Several other research firms have also issued reports on DOCN. Needham & Company LLC restated a "hold" rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Stifel Nicolaus raised their price target on DigitalOcean from $35.00 to $40.00 and gave the stock a "hold" rating in a research report on Wednesday, December 18th. Morgan Stanley upgraded 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 report on Thursday, January 16th. JMP Securities raised their price target on DigitalOcean from $47.00 to $55.00 and gave the stock a "market outperform" rating in a research report on Monday, January 27th. Finally, Cantor Fitzgerald assumed coverage on DigitalOcean in a research report on Friday, January 17th. They issued a "neutral" rating and a $39.00 price objective on the stock. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $43.27.

Remove Ads

DigitalOcean Stock Performance

DOCN traded up $0.03 on Wednesday, hitting $42.74. 1,198,218 shares of the company were exchanged, compared to its average volume of 1,348,071. The firm has a fifty day simple moving average of $39.17 and a two-hundred day simple moving average of $39.22. DigitalOcean has a 12 month low of $26.63 and a 12 month high of $47.02. The stock has a market capitalization of $3.94 billion, a PE ratio of 50.29, a price-to-earnings-growth ratio of 3.12 and a beta of 1.81.

Insider Activity

In other news, CFO Matt Steinfort sold 12,498 shares of the firm's 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 completion of the transaction, the chief financial officer now owns 517,498 shares in the company, valued at $20,699,920. This trade represents a 2.36 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Bratin Saha sold 4,289 shares of the firm's stock in a transaction that occurred on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total value of $157,835.20. Following the completion of the transaction, the insider now owns 372,762 shares of the company's stock, valued at approximately $13,717,641.60. The trade was a 1.14 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 20,255 shares of company stock worth $790,163 in the last quarter. 0.74% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in DigitalOcean by 1.4% during the fourth quarter. Vanguard Group Inc. now owns 8,434,555 shares of the company's stock valued at $287,365,000 after buying an additional 117,133 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its stake in DigitalOcean by 16.6% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company's stock valued at $55,500,000 after buying an additional 231,407 shares during the last quarter. Fuller & Thaler Asset Management Inc. raised its stake in DigitalOcean by 7.3% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 1,545,642 shares of the company's stock valued at $52,660,000 after buying an additional 105,235 shares during the last quarter. First Trust Advisors LP raised its stake in DigitalOcean by 6.2% during the fourth quarter. First Trust Advisors LP now owns 1,533,699 shares of the company's stock valued at $52,253,000 after buying an additional 89,349 shares during the last quarter. Finally, Geode Capital Management LLC raised its stake in DigitalOcean by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 1,473,421 shares of the company's stock valued at $50,211,000 after buying an additional 9,088 shares during the last quarter. Hedge funds and other institutional investors 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).