DigitalOcean (NYSE:DOCN) Stock Jumps 7.1% – Time to Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price shot up 7.1% during trading on Tuesday. The stock traded as high as $82.90 and last traded at $83.8270. Approximately 461,316 shares changed hands during trading, a decline of 87% from the average session volume of 3,571,922 shares. The stock had previously closed at $78.30.

Wall Street Analysts Forecast Growth

DOCN has been the topic of several research reports. UBS Group dropped their price target on shares of DigitalOcean from $105.00 to $100.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 4th. The Goldman Sachs Group lowered their price objective on shares of DigitalOcean from $178.00 to $156.00 and set a “buy” rating on the stock in a research note on Thursday, November 5th. Truist Financial initiated coverage on shares of DigitalOcean in a report on Thursday, August 27th. They issued a “buy” rating and a $175.00 target price on the stock. Stifel Nicolaus set a $130.00 target price on shares of DigitalOcean in a research note on Tuesday, November 3rd. Finally, Weiss Ratings cut shares of DigitalOcean from a “hold (c+)” rating to a “sell (d+)” rating in a report on Wednesday, November 4th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, DigitalOcean currently has an average rating of “Moderate Buy” and an average price target of $141.06.

DigitalOcean Stock Up 2.0%

The stock has a market cap of $9.43 billion, a PE ratio of 258.57, a P/E/G ratio of 73.25 and a beta of 1.69. The business has a 50 day simple moving average of $115.69 and a 200 day simple moving average of $111.81. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.15 and a quick ratio of 1.31.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.32 by $0.13. DigitalOcean had a return on equity of 15.01% and a net margin of 3.11%. The firm had revenue of $321.19 million for the quarter, compared to the consensus estimate of $306.74 million. During the same quarter in the prior year, the company posted $0.54 earnings per share. The firm’s revenue was up 39.6% on a year-over-year basis. On average, equities research analysts forecast that DigitalOcean Holdings, Inc. will post 0.65 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CAO Cherie Barrett sold 4,456 shares of the company’s stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $132.37, for a total value of $589,840.72. Following the sale, the chief accounting officer owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. This represents a 6.37% decrease in their position. The transaction 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 DigitalOcean stock in a transaction that occurred on 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 transaction, the chief financial officer owned 503,692 shares of the company’s stock, valued at $53,255,355.16. This trade represents a 1.95% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Over the last quarter, insiders have sold 18,441 shares of company stock valued at $2,068,475. Corporate insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Parallel Advisors LLC boosted its position in shares of DigitalOcean by 66.2% in the first quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares during the period. Root Financial Partners LLC acquired a new position in DigitalOcean during the third quarter valued at $31,000. Optiver Holding B.V. lifted its stake in DigitalOcean by 1,063.9% in the 1st quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock worth $36,000 after acquiring an additional 383 shares in the last quarter. SSI Investment Management LLC purchased a new stake in DigitalOcean in the 2nd quarter worth about $37,000. Finally, Hilltop National Bank purchased a new stake in DigitalOcean in the 2nd quarter worth about $38,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Founded in 2011, the company focuses on making it easier for customers to build, deploy, and scale applications without managing their own physical infrastructure.

Its platform includes virtual machines known as Droplets, managed Kubernetes, an application platform, managed databases, object storage, and networking and monitoring tools. These services support tasks ranging from hosting websites and applications to developing and running cloud-native software.

DigitalOcean serves customers around the world through its cloud platform and data center infrastructure.