DigitalOcean (NYSE:DOCN) Reaches New 12-Month High – Time to Buy?

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) hit a new 52-week high during trading on Monday . The company traded as high as $87.34 and last traded at $87.4440, with a volume of 399512 shares trading hands. The stock had previously closed at $82.65.

Wall Street Analyst Weigh In

A number of research firms have weighed in on DOCN. The Goldman Sachs Group raised their price objective on shares of DigitalOcean from $50.00 to $78.00 and gave the company a “buy” rating in a research note on Wednesday, February 25th. Barclays upped their target price on shares of DigitalOcean from $63.00 to $69.00 and gave the stock an “overweight” rating in a report on Wednesday, February 25th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Oppenheimer lifted their price target on DigitalOcean from $85.00 to $100.00 and gave the company an “outperform” rating in a research note on Wednesday, March 18th. Finally, Bank of America boosted their price objective on DigitalOcean from $72.00 to $86.00 and gave the stock a “buy” rating in a report on Wednesday, February 25th. Nine investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $70.38.

DigitalOcean Stock Performance

The company’s 50 day moving average price is $61.29 and its 200-day moving average price is $49.38. The stock has a market cap of $8.05 billion, a P/E ratio of 34.45, a price-to-earnings-growth ratio of 80.32 and a beta of 1.76.

Insider Activity

In other DigitalOcean news, CAO Cherie Barrett sold 22,000 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the sale, the chief accounting officer directly owned 62,469 shares of the company’s stock, valued at approximately $3,421,427.13. This represents a 26.05% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 transaction of $1,108,000.00. Following the completion of the sale, the chief financial officer owned 545,916 shares of the company’s stock, valued at approximately $30,243,746.40. This trade represents a 3.53% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.74% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in DigitalOcean by 5.0% in the third 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 last quarter. Fuller & Thaler Asset Management Inc. lifted its position in shares of DigitalOcean by 11.6% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock valued at $116,467,000 after buying an additional 252,303 shares during the last quarter. Lazard Asset Management LLC grew its stake in shares of DigitalOcean by 34.5% during the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock worth $47,430,000 after acquiring an additional 426,264 shares during the period. Van Berkom & Associates Inc. increased its holdings in DigitalOcean by 2.9% in the 4th quarter. Van Berkom & Associates Inc. now owns 1,610,671 shares of the company’s stock worth $77,505,000 after acquiring an additional 45,680 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in DigitalOcean by 2.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company’s stock valued at $65,432,000 after acquiring an additional 31,682 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.