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

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price shot up 7.3% during trading on Wednesday . The stock traded as high as $66.35 and last traded at $66.5530. 715,207 shares changed hands during trading, a decline of 77% from the average session volume of 3,141,536 shares. The stock had previously closed at $62.01.

Analyst Upgrades and Downgrades

DOCN has been the topic of several recent analyst reports. Oppenheimer raised their target price on DigitalOcean from $60.00 to $85.00 and gave the stock an “outperform” rating in a research note on Wednesday, February 25th. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a report on Tuesday, February 24th. Canaccord Genuity Group lifted their price objective on DigitalOcean from $65.00 to $80.00 and gave the stock a “buy” rating in a research report on Friday, February 20th. The Goldman Sachs Group boosted their target price on DigitalOcean from $50.00 to $78.00 and gave the company a “buy” rating in a research note on Wednesday, February 25th. Finally, Cantor Fitzgerald upped their target price on DigitalOcean from $68.00 to $83.00 and gave the company an “overweight” rating in a report on Wednesday, February 25th. Nine analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, DigitalOcean has a consensus rating of “Moderate Buy” and a consensus target price of $69.23.

DigitalOcean Price Performance

The stock’s 50 day moving average is $57.40 and its 200-day moving average is $46.94. The company has a market capitalization of $6.30 billion, a P/E ratio of 27.03, a P/E/G ratio of 55.91 and a beta of 1.76.

Insider Activity at DigitalOcean

In other news, CAO Cherie Barrett sold 22,000 shares of the firm’s stock in a transaction that occurred 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. This trade represents a 26.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Matt Steinfort sold 20,000 shares of DigitalOcean stock in a transaction that occurred on 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 sale, the chief financial officer owned 545,916 shares in the company, valued at $30,243,746.40. This represents a 3.53% decrease in their ownership of the stock. 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

A number of hedge funds and other institutional investors have recently modified their holdings of DOCN. Vanguard Group Inc. lifted its position in DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after acquiring an additional 442,617 shares during the period. Fuller & Thaler Asset Management Inc. grew its holdings in DigitalOcean by 11.6% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock worth $116,467,000 after purchasing an additional 252,303 shares during the period. Lazard Asset Management LLC increased its stake in shares of DigitalOcean by 34.5% during the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after purchasing an additional 426,264 shares in the last quarter. Van Berkom & Associates Inc. lifted its holdings in shares of DigitalOcean by 2.9% during the fourth quarter. Van Berkom & Associates Inc. now owns 1,610,671 shares of the company’s stock valued at $77,505,000 after purchasing an additional 45,680 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of DigitalOcean by 2.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company’s stock worth $65,432,000 after purchasing an additional 31,682 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

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.