DigitalOcean (NYSE:DOCN) Trading Up 7.3% – Here’s Why

DigitalOcean Holdings, Inc. (NYSE:DOCN) shot up 7.3% on Tuesday . The company traded as high as $77.59 and last traded at $77.2610. 2,645,091 shares were traded during trading, a decline of 19% from the average session volume of 3,248,437 shares. The stock had previously closed at $72.01.

Analyst Upgrades and Downgrades

DOCN has been the topic of several recent research reports. Cantor Fitzgerald upped their price target on DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 25th. Barclays raised their price target on DigitalOcean from $63.00 to $69.00 and gave the company an “overweight” rating in a report on Wednesday, February 25th. Canaccord Genuity Group increased their price objective on shares of DigitalOcean from $65.00 to $80.00 and gave the company a “buy” rating in a research report on Friday, February 20th. Bank of America lifted their target price on shares of DigitalOcean from $72.00 to $86.00 and gave the stock a “buy” rating in a report on Wednesday, February 25th. Finally, Piper Sandler reiterated a “neutral” rating and set a $67.00 price target on shares of DigitalOcean in a report on Tuesday, February 24th. Nine analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $69.23.

DigitalOcean Stock Performance

The firm has a market cap of $7.10 billion, a P/E ratio of 30.51, a P/E/G ratio of 66.70 and a beta of 1.76. The business’s 50-day simple moving average is $59.00 and its 200 day simple moving average is $47.98.

Insiders Place Their Bets

In related news, CAO Cherie Barrett sold 22,000 shares of the company’s stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the completion of the sale, the chief accounting officer owned 62,469 shares in the company, valued at approximately $3,421,427.13. This represents a 26.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 20,000 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $55.40, for a total value of $1,108,000.00. Following the completion of the transaction, the chief financial officer directly owned 545,916 shares in the company, valued at approximately $30,243,746.40. This represents a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.74% of the stock is currently owned by corporate insiders.

Institutional Trading of DigitalOcean

Several large investors have recently added to or reduced their stakes in the business. Bullseye Asset Management LLC grew its position in shares of DigitalOcean by 267.8% during the 3rd quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company’s stock valued at $3,392,000 after acquiring an additional 72,300 shares during the period. Allspring Global Investments Holdings LLC raised its holdings in DigitalOcean by 39.4% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 300,299 shares of the company’s stock worth $10,772,000 after purchasing an additional 84,816 shares during the period. Penserra Capital Management LLC lifted its position in DigitalOcean by 27.2% during the third quarter. Penserra Capital Management LLC now owns 293,132 shares of the company’s stock valued at $10,013,000 after purchasing an additional 62,725 shares in the last quarter. Segall Bryant & Hamill LLC purchased a new position in DigitalOcean during the third quarter valued at $8,951,000. Finally, Van Berkom & Associates Inc. grew its holdings in DigitalOcean by 33.1% during the third quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock valued at $53,460,000 after purchasing an additional 389,161 shares during the period. 49.77% of the stock is currently owned by institutional investors.

About DigitalOcean

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.