Cantor Fitzgerald Begins Coverage on DigitalOcean (NYSE:DOCN)

Analysts at Cantor Fitzgerald assumed coverage on shares of DigitalOcean (NYSE:DOCN) in a research note issued on Friday, MarketBeat Ratings reports. The firm set a “neutral” rating and a $39.00 price target on the stock. Cantor Fitzgerald’s price objective points to a potential upside of 8.04% from the stock’s current price.

A number of other research analysts also recently commented on DOCN. Barclays increased their price objective on DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th. Stifel Nicolaus raised their price target on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note 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 note on Thursday. JPMorgan Chase & Co. raised their price target on DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research note on Friday, October 25th. Finally, Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Six analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $41.70.

DigitalOcean Stock Performance

DOCN opened at $36.10 on Friday. DigitalOcean has a one year low of $26.63 and a one year high of $44.80. The company has a market cap of $3.33 billion, a P/E ratio of 42.47, a PEG ratio of 2.47 and a beta of 1.78. The business’s 50-day simple moving average is $36.85 and its 200-day simple moving average is $37.20.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Monday, November 4th. The company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.12. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The business had revenue of $198.50 million for the quarter, compared to the consensus estimate of $196.64 million. During the same quarter in the prior year, the business posted $0.17 EPS. The business’s revenue for the quarter was up 12.1% on a year-over-year basis. As a group, analysts predict that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insider Buying and Selling at DigitalOcean

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 sale, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at $20,699,920. This trade represents a 2.36 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Bratin Saha sold 16,989 shares of DigitalOcean stock in a transaction on Monday, November 18th. The stock was sold at an average price of $36.85, for a total value of $626,044.65. Following the transaction, the insider now directly owns 390,296 shares of the company’s stock, valued at approximately $14,382,407.60. This represents a 4.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 32,955 shares of company stock worth $1,258,373. 0.74% of the stock is currently owned by insiders.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently bought and sold shares of DOCN. Jacobs Levy Equity Management Inc. raised its holdings in DigitalOcean by 32.8% during the third quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company’s stock worth $56,449,000 after purchasing an additional 345,119 shares during the last quarter. University of Texas Texas AM Investment Management Co. acquired a new position in DigitalOcean during the second quarter worth $11,712,000. Renaissance Technologies LLC raised its holdings in DigitalOcean by 152.6% during the second quarter. Renaissance Technologies LLC now owns 375,600 shares of the company’s stock worth $13,052,000 after purchasing an additional 226,900 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in DigitalOcean by 23.4% during the second quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company’s stock worth $37,512,000 after purchasing an additional 205,007 shares during the last quarter. Finally, Principal Financial Group Inc. raised its holdings in DigitalOcean by 10.4% during the third quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company’s stock worth $52,568,000 after purchasing an additional 122,651 shares during the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

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).