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

DigitalOcean (NYSE:DOCN) had its price objective reduced by Barclays from $161.00 to $140.00 in a research note issued to investors on Wednesday morning,Benzinga reports. Barclays currently has an overweight rating on the stock.

A number of other research firms have also recently commented on DOCN. UBS Group reduced their price objective on DigitalOcean from $125.00 to $105.00 and set a “neutral” rating for the company in a research report on Monday, October 26th. Canaccord Genuity Group restated a “buy” rating and set a $200.00 price target on shares of DigitalOcean in a research note on Friday, July 10th. Stifel Nicolaus set a $130.00 price target on shares of DigitalOcean in a research report on Tuesday. Piper Sandler upgraded shares of DigitalOcean from a “neutral” rating to an “overweight” rating and lowered their price objective for the stock from $142.00 to $126.00 in a research note on Wednesday, October 21st. Finally, Morgan Stanley lowered their price objective on shares of DigitalOcean from $175.00 to $150.00 and set an “overweight” rating on the stock in a research note on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $141.06.

DigitalOcean Stock Performance

Shares of NYSE:DOCN traded up $1.53 during midday trading on Wednesday, reaching $72.23. 7,968,377 shares of the company’s stock traded hands, compared to its average volume of 2,889,268. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31. DigitalOcean has a one year low of $41.96 and a one year high of $187.50. The company has a market cap of $7.54 billion, a price-to-earnings ratio of 233.00, a P/E/G ratio of 78.28 and a beta of 1.69. The stock has a 50 day moving average of $116.36 and a 200 day moving average of $111.68.

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

Insider Transactions at DigitalOcean

In related news, CAO Cherie Barrett sold 4,456 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total value of $589,840.72. Following the transaction, the chief accounting officer owned 65,487 shares of the company’s stock, valued at $8,668,514.19. This represents a 6.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction dated 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 completion of the sale, the chief financial officer owned 503,692 shares of the company’s stock, valued at approximately $53,255,355.16. This represents a 1.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 a total of 18,441 shares of company stock worth $2,068,475 over the last 90 days. Insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several large investors have recently added to or reduced their stakes in the company. Bank of America Corp DE acquired a new position in DigitalOcean in the 2nd quarter worth approximately $241,945,000. First Trust Advisors LP raised its stake in DigitalOcean by 9.3% in the 1st quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock valued at $123,622,000 after purchasing an additional 122,675 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in DigitalOcean during the second quarter worth about $98,011,000. Principal Financial Group Inc. increased its holdings in shares of DigitalOcean by 155.3% in the first quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock valued at $95,080,000 after purchasing an additional 674,231 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in DigitalOcean by 18.6% during the third quarter. Allspring Global Investments Holdings LLC now owns 580,462 shares of the company’s stock worth $81,149,000 after purchasing an additional 90,897 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

Key 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

DigitalOcean Company Profile

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.