Wall Street Zen Upgrades DigitalOcean (NYSE:DOCN) to “Buy”

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

DOCN has been the topic of a number of other reports. Canaccord Genuity Group lowered their price objective on shares of DigitalOcean from $50.00 to $45.00 and set a “buy” rating on the stock in a research note on Monday, April 7th. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research note on Tuesday, May 6th. The Goldman Sachs Group decreased their price target on shares of DigitalOcean from $46.00 to $41.00 and set a “buy” rating on the stock in a research note on Wednesday, May 7th. Morgan Stanley decreased their price target on shares of DigitalOcean from $52.00 to $41.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 16th. Finally, Citigroup decreased their price target on shares of DigitalOcean from $50.00 to $40.00 and set a “buy” rating on the stock in a research note on Wednesday, May 7th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and seven have given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $39.83.

DigitalOcean Trading Up 1.4%

Shares of NYSE DOCN opened at $28.27 on Friday. The stock has a market cap of $2.57 billion, a price-to-earnings ratio of 25.47, a PEG ratio of 2.07 and a beta of 1.78. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $47.02. The company’s 50-day moving average price is $29.15 and its 200 day moving average price is $34.17.

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

Insider Buying and Selling

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

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Fuller & Thaler Asset Management Inc. lifted its position 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 valued at $66,352,000 after buying an additional 441,535 shares in the last quarter. Norges Bank acquired a new position in DigitalOcean during the fourth quarter valued at approximately $14,772,000. Jacobs Levy Equity Management Inc. raised its stake in shares of 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 purchasing an additional 231,407 shares during the period. CenterBook Partners LP purchased a new stake in shares of DigitalOcean during the fourth quarter valued at approximately $7,633,000. Finally, Nuveen LLC purchased a new stake in shares of DigitalOcean during the first quarter valued at approximately $5,737,000. 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).