DigitalOcean (NYSE:DOCN) Reaches New 1-Year High After Analyst Upgrade

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) hit a new 52-week high during trading on Friday after Barclays raised their price target on the stock from $38.00 to $48.00. Barclays currently has an overweight rating on the stock. DigitalOcean traded as high as $44.36 and last traded at $43.82, with a volume of 65806 shares traded. The stock had previously closed at $43.54.

DOCN has been the subject of several other research reports. Canaccord Genuity Group raised their target price on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, October 4th. Stifel Nicolaus increased their price objective on DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research note on Friday, August 9th. UBS Group cut their price target on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research note on Friday, August 9th. Finally, Piper Sandler dropped their price objective on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a research report on Monday, July 15th. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $39.44.

Hedge Funds Weigh In On DigitalOcean

A number of hedge funds have recently bought and sold shares of the company. FinTrust Capital Advisors LLC acquired a new position in shares of DigitalOcean in the 1st quarter valued at about $36,000. Covestor Ltd lifted its holdings in DigitalOcean by 571.4% in the first quarter. Covestor Ltd now owns 1,947 shares of the company’s stock worth $74,000 after acquiring an additional 1,657 shares during the last quarter. Scarborough Advisors LLC bought a new position in shares of DigitalOcean during the fourth quarter valued at approximately $98,000. Ables Iannone Moore & Associates Inc. bought a new position in shares of DigitalOcean during the fourth quarter valued at approximately $102,000. Finally, Quest Partners LLC boosted its position in DigitalOcean by 11,041.9% during the 2nd quarter. Quest Partners LLC now owns 3,454 shares of the company’s stock valued at $120,000 after purchasing an additional 3,423 shares during the period. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean Price Performance

The stock has a market capitalization of $4.06 billion, a price-to-earnings ratio of 61.26, a price-to-earnings-growth ratio of 3.38 and a beta of 1.83. The company has a 50-day simple moving average of $37.78 and a two-hundred day simple moving average of $36.05.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.39 by $0.09. The firm had revenue of $192.00 million during the quarter, compared to analysts’ expectations of $188.63 million. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. DigitalOcean’s quarterly revenue was up 13.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.11 EPS. Research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.86 EPS 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).