DigitalOcean (NYSE:DOCN) Rating Increased to Overweight at Morgan Stanley

Morgan Stanley upgraded shares of DigitalOcean (NYSE:DOCN) from an equal weight rating to an overweight rating in a research note issued to investors on Thursday, MarketBeat reports. Morgan Stanley currently has $41.00 price target on the stock, up from their prior price target of $40.00.

DOCN has been the subject of several other reports. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. JPMorgan Chase & Co. lifted their price objective on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday, October 25th. Stifel Nicolaus lifted their target price on shares of DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a report on Wednesday, December 18th. Canaccord Genuity Group lifted their target price on shares of DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a report on Friday, October 4th. Finally, Barclays lifted their target price on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th. Five analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $42.00.

DigitalOcean Stock Up 3.0 %

DOCN stock opened at $35.27 on Thursday. The firm has a 50 day moving average of $36.97 and a 200 day moving average of $37.19. The stock has a market capitalization of $3.25 billion, a PE ratio of 41.49, a price-to-earnings-growth ratio of 2.47 and a beta of 1.78. DigitalOcean has a 52 week low of $26.63 and a 52 week high of $44.80.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Monday, November 4th. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.40 by $0.12. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The business had revenue of $198.50 million during the quarter, compared to analysts’ expectations of $196.64 million. During the same period in the previous year, the business posted $0.17 EPS. The business’s quarterly revenue was up 12.1% compared to the same quarter last year. On average, equities research analysts expect that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction dated Wednesday, December 4th. The shares were 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 in the company, valued at $20,699,920. This represents a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Bratin Saha sold 16,989 shares of the stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $36.85, for a total transaction of $626,044.65. Following the completion of the sale, the insider now owns 390,296 shares of the company’s stock, valued at $14,382,407.60. This trade represents a 4.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 32,955 shares of company stock valued at $1,258,373. 0.74% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds have recently modified their holdings of the business. Geode Capital Management LLC raised its position in shares of DigitalOcean by 7.9% in the third quarter. Geode Capital Management LLC now owns 1,464,333 shares of the company’s stock valued at $59,156,000 after buying an additional 106,636 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its position in shares of DigitalOcean by 32.8% in the third quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company’s stock valued at $56,449,000 after buying an additional 345,119 shares during the last quarter. Principal Financial Group Inc. raised its position in shares of DigitalOcean by 10.4% in the third quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company’s stock valued at $52,568,000 after buying an additional 122,651 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of DigitalOcean by 23.4% in the second quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company’s stock valued at $37,512,000 after purchasing an additional 205,007 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its holdings in shares of DigitalOcean by 14.3% in the third quarter. Charles Schwab Investment Management Inc. now owns 565,763 shares of the company’s stock valued at $22,851,000 after purchasing an additional 70,700 shares during the period. 49.77% of the stock is currently 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).