DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Consensus "Moderate Buy": Thirteen analysts rate DigitalOcean as a consensus Moderate Buy (nine Buy, four Hold) with an average 12‑month target of about $81.08.
• Shares opened at $95.42 and are trading near their 1‑year high of $99.23; the company has a market cap of $8.78 billion, a PE of 37.72, and 50/200‑day SMAs of $75.67 and $57.97 respectively.
• Insider activity and institutional flows: the CFO and CAO sold shares in March (reducing their positions), insiders now own 0.96% of stock, while institutional ownership is 49.77% with several firms recently increasing stakes.

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the thirteen analysts that are presently covering the firm, Marketbeat.com reports. Four equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $81.0769.

Several research analysts have recently weighed in on DOCN shares. Royal Bank Of Canada set a $60.00 price target on shares of DigitalOcean in a research note on Tuesday, February 24th. Canaccord Genuity Group lifted their price target on shares of DigitalOcean from $65.00 to $80.00 and gave the stock a "buy" rating in a research note on Friday, February 20th. Citizens Jmp lifted their price target on shares of DigitalOcean from $83.00 to $105.00 and gave the stock a "market outperform" rating in a research note on Thursday, March 26th. Cantor Fitzgerald lifted their price target on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of DigitalOcean in a research note on Friday, March 27th.

DigitalOcean Price Performance

Shares of DigitalOcean stock opened at $95.42 on Friday. The company's fifty day simple moving average is $75.67 and its 200-day simple moving average is $57.97. The stock has a market capitalization of $8.78 billion, a PE ratio of 37.72 and a beta of 1.43. DigitalOcean has a 1-year low of $25.56 and a 1-year high of $99.23.

Insiders Place Their Bets

In related news, CFO Matt Steinfort sold 20,000 shares of DigitalOcean stock in a transaction on 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 transaction, the chief financial officer owned 545,916 shares in the company, valued at approximately $30,243,746.40. The trade was a 3.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Cherie Barrett sold 22,000 shares of DigitalOcean stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the transaction, the chief accounting officer owned 62,469 shares in the company, valued at approximately $3,421,427.13. This trade represents a 26.05% decrease in their position. The SEC filing for this sale provides additional information. 0.96% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of DigitalOcean by 5.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company's stock valued at $11,342,000 after buying an additional 16,162 shares in the last quarter. Intech Investment Management LLC lifted its stake in shares of DigitalOcean by 59.2% during the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company's stock valued at $1,317,000 after buying an additional 14,655 shares in the last quarter. Amundi lifted its stake in shares of DigitalOcean by 126,552.2% during the 2nd quarter. Amundi now owns 29,130 shares of the company's stock valued at $827,000 after buying an additional 29,107 shares in the last quarter. Jump Financial LLC bought a new stake in DigitalOcean in the 2nd quarter valued at $3,212,000. Finally, Qube Research & Technologies Ltd increased its holdings in DigitalOcean by 69.7% in the 2nd quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company's stock valued at $11,842,000 after acquiring an additional 170,339 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company's stock.

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.

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