DigitalOcean (NYSE:DOCN) Stock Gets Price Target Reduction from UBS Group

DigitalOcean (NYSE:DOCN) had its price target trimmed by UBS Group from $105.00 to $100.00 in a report released on Wednesday morning,Benzinga reports. The brokerage currently has a neutral rating on the stock.

Other research analysts also recently issued research reports about the company. Piper Sandler upgraded DigitalOcean from a “neutral” rating to an “overweight” rating and lowered their price target for the company from $142.00 to $126.00 in a report on Wednesday, October 21st. Stifel Nicolaus set a $130.00 price objective on DigitalOcean in a research note on Tuesday. Weiss Ratings cut DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Truist Financial initiated coverage on DigitalOcean in a research note on Thursday, August 27th. They set a “buy” rating and a $175.00 target price on the stock. Finally, William Blair reiterated an “outperform” rating on shares of DigitalOcean in a report on Wednesday, July 15th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $141.06.

DigitalOcean Trading Up 2.2%

Shares of DigitalOcean stock traded up $1.53 during trading on Wednesday, hitting $72.23. The stock had a trading volume of 7,968,377 shares, compared to its average volume of 2,889,268. DigitalOcean has a 1 year low of $41.96 and a 1 year high of $187.50. The stock has a 50 day simple moving average of $116.36 and a 200 day simple moving average of $111.68. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.14. The company has a market capitalization of $7.54 billion, a PE ratio of 233.00, a P/E/G ratio of 78.28 and a beta of 1.69.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.13. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm had revenue of $321.19 million during the quarter, compared to analyst estimates of $306.74 million. During the same quarter last year, the business posted $0.54 EPS. The company’s revenue was up 39.6% on a year-over-year basis. On average, research analysts expect that DigitalOcean will post 0.62 EPS for the current fiscal year.

Insider Activity at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the transaction, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. This trade represents a 1.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Cherie Barrett sold 3,985 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total transaction of $421,334.05. Following the transaction, the chief accounting officer owned 58,399 shares in the company, valued at $6,174,526.27. This represents a 6.39% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 18,441 shares of company stock valued at $2,068,475 over the last three months. Insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

A number of large investors have recently bought and sold shares of DOCN. Root Financial Partners LLC bought a new position in DigitalOcean during the third quarter valued at about $31,000. Hilltop National Bank bought a new stake in shares of DigitalOcean during the 2nd quarter worth about $38,000. Rakuten Securities Inc. acquired a new position in shares of DigitalOcean during the 2nd quarter valued at about $43,000. TD Waterhouse Canada Inc. increased its holdings in shares of DigitalOcean by 32,000.0% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 321 shares of the company’s stock valued at $45,000 after acquiring an additional 320 shares during the last quarter. Finally, Parallel Advisors LLC increased its holdings in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after acquiring an additional 129 shares during the last quarter. 49.77% of the stock is currently owned by institutional investors.

More DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean announced a collaboration with Box, which could expand the reach of its cloud services. The announcement provides no further details in the supplied headline. DigitalOcean announces collaboration with Box
• Positive Sentiment: Earlier coverage pointed to higher guidance and AI revenue growth as reasons for investor optimism. DigitalOcean Stock Jumps On Higher Guidance And AI Revenue Growth
• Neutral Sentiment: Goldman Sachs lowered its price target from $178 to $156 but kept a Buy rating, signaling continued optimism alongside a more cautious valuation. Goldman Sachs price-target update
• Negative Sentiment: UBS, Canaccord Genuity and Citigroup were reported to have cut their price targets or issued a more pessimistic outlook, adding pressure to sentiment. Canaccord nevertheless maintained a Buy rating. UBS Group price-target cut Canaccord Genuity price-target cut Citigroup forecast
• Negative Sentiment: Coverage also highlighted a $1 billion offering and argued DOCN could be substantially below fair value after its results. The offering may raise concerns about financing and potential dilution. DigitalOcean Holdings Could Be 62% Below Fair Value Following Results And $1b Offering

About DigitalOcean

DigitalOcean Holdings, Inc is a cloud computing company that provides infrastructure and developer-focused services for startups, small and medium-sized businesses, and individual developers. Its platform is designed to simplify the deployment, management, and scaling of applications without requiring customers to build and operate extensive in-house infrastructure.

The company’s offerings include Droplets, its virtual machine service; managed Kubernetes; managed databases; object and block storage; networking tools; and application deployment services through App Platform.