DigitalOcean (NYSE:DOCN) Trading Down 7.3% – Time to Sell?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price dropped 7.3% on Monday . The stock traded as low as $60.19 and last traded at $59.0160. Approximately 562,162 shares traded hands during trading, a decline of 81% from the average daily volume of 2,914,188 shares. The stock had previously closed at $63.63.

Analysts Set New Price Targets

Several research firms have recently commented on DOCN. Piper Sandler lifted their price objective on shares of DigitalOcean from $47.00 to $50.00 and gave the stock a “neutral” rating in a research note on Monday, January 5th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Canaccord Genuity Group increased their price objective on DigitalOcean from $65.00 to $80.00 and gave the company a “buy” rating in a report on Friday. UBS Group lifted their target price on DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a report on Thursday, November 6th. Finally, Oppenheimer started coverage on shares of DigitalOcean in a report on Monday, November 10th. They issued an “outperform” rating and a $60.00 price target on the stock. Eight research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $53.92.

DigitalOcean Trading Down 7.7%

The firm has a market cap of $5.37 billion, a price-to-earnings ratio of 23.68, a PEG ratio of 8.94 and a beta of 1.76. The company has a fifty day moving average price of $55.15 and a 200-day moving average price of $44.75.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank acquired a new position in shares of DigitalOcean in the 2nd quarter valued at $22,633,000. Alyeska Investment Group L.P. acquired a new position in shares of DigitalOcean in the third quarter worth about $21,808,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of DigitalOcean by 90.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock worth $57,496,000 after acquiring an additional 568,823 shares in the last quarter. Vanguard Group Inc. boosted its stake in shares of DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after acquiring an additional 442,617 shares in the last quarter. Finally, Franklin Resources Inc. grew its position in shares of DigitalOcean by 784.2% during the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after acquiring an additional 438,411 shares during the period. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.