DigitalOcean (NYSE:DOCN) Cut to Hold at Wall Street Zen

DigitalOcean (NYSE:DOCN) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

DOCN has been the subject of a number of other reports. Stifel Nicolaus lowered their target price on DigitalOcean from $40.00 to $33.00 and set a “hold” rating for the company in a report on Monday, April 7th. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a report on Tuesday, May 6th. Canaccord Genuity Group lowered their target price on DigitalOcean from $50.00 to $45.00 and set a “buy” rating for the company in a report on Monday, April 7th. Citigroup lowered their target price on DigitalOcean from $50.00 to $40.00 and set a “buy” rating for the company in a report on Wednesday, May 7th. Finally, Morgan Stanley lowered their target price on DigitalOcean from $52.00 to $41.00 and set an “overweight” rating for the company in a report on Wednesday, April 16th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and six have assigned a buy rating to the company’s stock. According to data from MarketBeat, DigitalOcean has an average rating of “Hold” and a consensus target price of $39.83.

DigitalOcean Price Performance

DigitalOcean stock opened at $27.40 on Friday. The stock’s 50 day moving average is $29.12 and its 200 day moving average is $34.59. The firm has a market cap of $2.49 billion, a P/E ratio of 24.68, a P/E/G ratio of 2.04 and a beta of 1.78. DigitalOcean has a one year low of $25.45 and a one year high of $47.02.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Tuesday, May 6th. The company reported $0.56 EPS for the quarter, topping analysts’ consensus estimates of $0.45 by $0.11. The company had revenue of $210.70 million for the quarter, compared to analyst estimates of $208.63 million. DigitalOcean had a negative return on equity of 60.69% and a net margin of 13.46%. The firm’s quarterly revenue was up 14.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.43 earnings per share. Equities analysts anticipate that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Bratin Saha sold 3,461 shares of DigitalOcean stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $27.77, for a total transaction of $96,111.97. Following the completion of the transaction, the insider now directly owns 294,546 shares in the company, valued at $8,179,542.42. This trade represents a 1.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in DigitalOcean by 1.4% during the fourth quarter. Vanguard Group Inc. now owns 8,434,555 shares of the company’s stock worth $287,365,000 after buying an additional 117,133 shares in the last quarter. Fuller & Thaler Asset Management Inc. grew its holdings in DigitalOcean by 28.6% during the first 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 in the last quarter. Jacobs Levy Equity Management Inc. grew its holdings 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 worth $55,500,000 after buying an additional 231,407 shares in the last quarter. First Trust Advisors LP grew its holdings in DigitalOcean by 6.2% during the fourth quarter. First Trust Advisors LP now owns 1,533,699 shares of the company’s stock worth $52,253,000 after buying an additional 89,349 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in DigitalOcean by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 1,473,421 shares of the company’s stock worth $50,211,000 after buying an additional 9,088 shares in the last quarter. 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).