DigitalOcean (NYSE:DOCN) Sets New 1-Year High – What’s Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN) reached a new 52-week high during trading on Friday . The stock traded as high as $45.50 and last traded at $44.94, with a volume of 394298 shares changing hands. The stock had previously closed at $43.99.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. JMP Securities upped their target price on DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a report on Monday, January 27th. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Stifel Nicolaus boosted their price objective on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research report on Wednesday, December 18th. Barclays upped their target price on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, October 11th. Finally, Citigroup initiated coverage on shares of DigitalOcean in a report on Friday, January 24th. They set a “buy” rating and a $45.00 price target on the stock. Six investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $42.73.

DigitalOcean Stock Up 2.0 %

The firm has a fifty day moving average of $37.45 and a 200-day moving average of $37.83. The firm has a market cap of $4.14 billion, a P/E ratio of 52.64, a PEG ratio of 3.01 and a beta of 1.81.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results on Monday, November 4th. The company reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.12. The company had revenue of $198.50 million for the quarter, compared to analyst estimates of $196.64 million. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The company’s quarterly revenue was up 12.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.17 earnings per share. Sell-side analysts anticipate that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current year.

Insider Transactions at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 12,498 shares of DigitalOcean stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total value of $499,920.00. Following the completion of the sale, the chief financial officer now owns 517,498 shares in the company, valued at $20,699,920. The trade was a 2.36 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bratin Saha sold 16,989 shares of the company’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $36.85, for a total value of $626,044.65. Following the sale, the insider now owns 390,296 shares of the company’s stock, valued at $14,382,407.60. The trade was a 4.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 37,244 shares of company stock valued at $1,416,208 in the last ninety days. 0.74% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

Institutional investors have recently modified their holdings of the business. Nisa Investment Advisors LLC raised its stake in DigitalOcean by 56.4% during the third quarter. Nisa Investment Advisors LLC now owns 1,340 shares of the company’s stock worth $54,000 after buying an additional 483 shares during the last quarter. Creative Financial Designs Inc. ADV raised its holdings in shares of DigitalOcean by 17.8% in the 3rd quarter. Creative Financial Designs Inc. ADV now owns 3,744 shares of the company’s stock worth $151,000 after purchasing an additional 566 shares during the period. Harbor Investment Advisory LLC grew its stake in DigitalOcean by 380.0% in the 4th quarter. Harbor Investment Advisory LLC now owns 720 shares of the company’s stock valued at $25,000 after buying an additional 570 shares in the last quarter. Advisors Asset Management Inc. raised its holdings in DigitalOcean by 150.4% during the 3rd quarter. Advisors Asset Management Inc. now owns 974 shares of the company’s stock valued at $39,000 after acquiring an additional 585 shares during the period. Finally, BSW Wealth Partners lifted its position in shares of DigitalOcean by 4.3% during the fourth quarter. BSW Wealth Partners now owns 14,556 shares of the company’s stock worth $496,000 after acquiring an additional 600 shares in the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

About DigitalOcean

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).