DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives Average Recommendation of “Hold” from Brokerages

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have been assigned an average recommendation of “Hold” from the thirteen brokerages that are covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, six have assigned a hold recommendation and six have assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $39.83.

DOCN has been the subject of several recent analyst reports. Citigroup decreased their target price on DigitalOcean from $50.00 to $40.00 and set a “buy” rating for the company in a research note on Wednesday. Barclays lowered their price objective on shares of DigitalOcean from $48.00 to $38.00 and set an “overweight” rating for the company in a research note on Monday, April 21st. JMP Securities increased their target price on shares of DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research note on Monday, January 27th. Stifel Nicolaus decreased their price target on shares of DigitalOcean from $40.00 to $33.00 and set a “hold” rating for the company in a research note on Monday, April 7th. Finally, Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research report on Tuesday.

Insider Transactions at DigitalOcean

In other news, insider Bratin Saha sold 3,461 shares of the stock in a transaction dated Monday, April 21st. The shares were sold at an average price of $26.86, for a total value of $92,962.46. Following the completion of the sale, the insider now owns 394,367 shares in the company, valued at $10,592,697.62. This represents a 0.87 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.74% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of DigitalOcean in the 4th quarter worth approximately $14,772,000. Jacobs Levy Equity Management Inc. grew its stake in DigitalOcean by 16.6% in the 4th 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 bought a new stake in shares of DigitalOcean during the 4th quarter worth $7,633,000. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors purchased a new position in shares of DigitalOcean in the 4th quarter worth about $5,382,000. Finally, Bank of New York Mellon Corp grew its position in DigitalOcean by 19.7% during the fourth quarter. Bank of New York Mellon Corp now owns 791,861 shares of the company’s stock valued at $26,979,000 after buying an additional 130,263 shares during the period. 49.77% of the stock is owned by institutional investors.

DigitalOcean Price Performance

Shares of DOCN stock opened at $29.17 on Friday. DigitalOcean has a one year low of $25.45 and a one year high of $47.02. The business’s 50 day simple moving average is $32.25 and its 200 day simple moving average is $36.63. The stock has a market capitalization of $2.66 billion, a PE ratio of 34.32, a PEG ratio of 3.12 and a beta of 1.88.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Tuesday, May 6th. The company reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.11. The business had revenue of $210.70 million during the quarter, compared to the consensus estimate of $208.63 million. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. DigitalOcean’s quarterly revenue was up 14.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.43 earnings per share. As a group, research analysts expect that DigitalOcean will post 1.01 earnings per share for the current year.

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).