DigitalOcean (NASDAQ:DOCN) Shares Up 5.9%

DigitalOcean Holdings, Inc. (NASDAQ:DOCN)’s stock price traded up 5.9% during trading on Monday . The stock traded as high as $38.56 and last traded at $38.53. 120,539 shares traded hands during mid-day trading, a decline of 90% from the average session volume of 1,247,320 shares. The stock had previously closed at $36.40.

Analysts Set New Price Targets

A number of brokerages have commented on DOCN. UBS Group reduced their price objective on DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research note on Friday, August 9th. Stifel Nicolaus upped their target price on shares of DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research note on Friday, August 9th. Piper Sandler lowered their price target on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a report on Monday, July 15th. Finally, Barclays cut their price objective on shares of DigitalOcean from $43.00 to $38.00 and set an “overweight” rating on the stock in a report on Friday, August 9th. Five research analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, DigitalOcean currently has a consensus rating of “Moderate Buy” and a consensus target price of $37.67.

DigitalOcean Trading Down 2.9 %

The stock has a market capitalization of $3.44 billion, a P/E ratio of 71.26, a P/E/G ratio of 2.89 and a beta of 1.83. The stock’s 50 day simple moving average is $34.22 and its 200 day simple moving average is $35.67.

DigitalOcean (NASDAQ:DOCN) last issued its quarterly 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 business had revenue of $192.00 million for 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%. The company’s quarterly revenue was up 13.1% compared to the same quarter last year. During the same quarter last year, the company posted $0.11 earnings per share. On average, sell-side analysts expect that DigitalOcean Holdings, Inc. will post 0.86 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in DigitalOcean by 11.5% during the first quarter. Vanguard Group Inc. now owns 6,728,563 shares of the company’s stock worth $256,897,000 after purchasing an additional 696,426 shares during the last quarter. Wolf Hill Capital Management LP bought a new position in shares of DigitalOcean in the 4th quarter worth about $86,834,000. Van Berkom & Associates Inc. boosted its holdings in shares of DigitalOcean by 1.6% in the 2nd quarter. Van Berkom & Associates Inc. now owns 1,273,103 shares of the company’s stock valued at $44,240,000 after buying an additional 19,731 shares during the period. Principal Financial Group Inc. grew its position in shares of DigitalOcean by 27.9% during the 2nd quarter. Principal Financial Group Inc. now owns 1,178,848 shares of the company’s stock valued at $40,965,000 after buying an additional 257,229 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake 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 acquiring an additional 205,007 shares during the period. Institutional investors and hedge funds own 49.77% of the company’s stock.

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).