DigitalOcean (NYSE:DOCN) Trading Up 7.3% – Time to Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares were up 7.3% on Wednesday . The stock traded as high as $66.35 and last traded at $66.5530. Approximately 715,207 shares were traded during mid-day trading, a decline of 77% from the average daily volume of 3,141,536 shares. The stock had previously closed at $62.01.

Wall Street Analyst Weigh In

Several analysts recently commented on DOCN shares. Canaccord Genuity Group lifted their target price on shares of DigitalOcean from $65.00 to $80.00 and gave the stock a “buy” rating in a report on Friday, February 20th. Cantor Fitzgerald boosted their price objective on DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a report on Wednesday, February 25th. Wall Street Zen downgraded DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. The Goldman Sachs Group increased their target price on DigitalOcean from $50.00 to $78.00 and gave the stock a “buy” rating in a research note on Wednesday, February 25th. Finally, Oppenheimer boosted their price target on DigitalOcean from $60.00 to $85.00 and gave the company an “outperform” rating in a research note on Wednesday, February 25th. Nine equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $69.23.

DigitalOcean Price Performance

The business’s 50-day moving average price is $58.18 and its two-hundred day moving average price is $47.23. The company has a market capitalization of $6.33 billion, a price-to-earnings ratio of 27.33, a P/E/G ratio of 66.75 and a beta of 1.76.

Insiders Place Their Bets

In other news, CFO Matt Steinfort sold 20,000 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total transaction of $1,108,000.00. Following the sale, the chief financial officer directly owned 545,916 shares of the company’s stock, valued at approximately $30,243,746.40. This represents a 3.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CAO Cherie Barrett sold 22,000 shares of the firm’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the transaction, the chief accounting officer owned 62,469 shares in the company, valued at $3,421,427.13. The trade was a 26.05% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.96% of the stock is owned by company insiders.

Institutional Investors Weigh In On DigitalOcean

A number of large investors have recently bought and sold shares of DOCN. Norges Bank bought a new position in DigitalOcean in the 2nd quarter valued at about $22,633,000. Alyeska Investment Group L.P. acquired a new stake in shares of DigitalOcean during the 3rd quarter worth approximately $21,808,000. Arrowstreet Capital Limited Partnership increased its stake in DigitalOcean by 90.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock valued at $57,496,000 after acquiring an additional 568,823 shares during the last quarter. Vanguard Group Inc. raised its position in DigitalOcean by 5.0% during the third quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after purchasing an additional 442,617 shares in the last quarter. Finally, Franklin Resources Inc. raised its position in DigitalOcean by 784.2% during the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after purchasing an additional 438,411 shares in the last quarter. 49.77% of the stock is currently owned by institutional investors and hedge funds.

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.