Morgan Stanley Increases DigitalOcean (NYSE:DOCN) Price Target to $44.00

DigitalOcean (NYSE:DOCN) had its target price lifted by Morgan Stanley from $41.00 to $44.00 in a research note issued on Wednesday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Morgan Stanley’s price objective would indicate a potential upside of 28.32% from the stock’s current price.

DOCN has been the subject of a number of other reports. Citigroup reduced their price target on shares of DigitalOcean from $50.00 to $40.00 and set a “buy” rating for the company in a research note on Wednesday, May 7th. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research report on Tuesday, May 6th. Barclays boosted their target price on shares of DigitalOcean from $38.00 to $40.00 and gave the company an “overweight” rating in a research note on Wednesday. Wall Street Zen upgraded DigitalOcean from a “hold” rating to a “buy” rating in a research note on Sunday, June 29th. Finally, UBS Group reduced their price objective on DigitalOcean from $44.00 to $32.00 and set a “neutral” rating for the company in a research report on Thursday, May 8th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $41.45.

DigitalOcean Trading Down 6.0%

DOCN stock opened at $34.29 on Wednesday. The stock has a market capitalization of $3.12 billion, a PE ratio of 26.38, a price-to-earnings-growth ratio of 2.67 and a beta of 1.75. The stock’s 50 day simple moving average is $28.87 and its 200 day simple moving average is $32.95. DigitalOcean has a 12-month low of $25.45 and a 12-month high of $47.02.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.12. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%. The firm had revenue of $218.70 million for the quarter, compared to the consensus estimate of $216.62 million. During the same period in the prior year, the company posted $0.48 earnings per share. The company’s quarterly revenue was up 13.6% on a year-over-year basis. On average, research analysts predict that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Transactions at DigitalOcean

In other news, insider Bratin Saha sold 3,461 shares of the firm’s stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total value of $96,111.97. Following the transaction, the insider owned 294,546 shares of the company’s stock, valued at $8,179,542.42. This trade represents a 1.16% decrease in their ownership of the stock. The transaction 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 Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Campbell & CO Investment Adviser LLC purchased a new position in DigitalOcean during the second quarter valued at approximately $1,116,000. Connor Clark & Lunn Investment Management Ltd. raised its position in shares of DigitalOcean by 48.1% during the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 90,147 shares of the company’s stock valued at $2,575,000 after purchasing an additional 29,261 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of DigitalOcean by 248.2% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 45,302 shares of the company’s stock valued at $1,294,000 after purchasing an additional 32,290 shares during the period. Penserra Capital Management LLC purchased a new position in shares of DigitalOcean during the 2nd quarter valued at $6,580,000. Finally, Bastion Asset Management Inc. bought a new position in DigitalOcean in the 2nd quarter worth $867,000. 49.77% of the stock is currently owned by institutional investors.

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).