DigitalOcean (NYSE:DOCN) Reaches New 1-Year High - Time to Buy?

Key Points

• 52-week high: Shares of DigitalOcean reached a new 52-week high of $97.87 (last at $95.52) during mid-day trading, up roughly 6.3%, with the 50‑day and 200‑day moving averages at $73.21 and $56.63 respectively.
• Analyst sentiment is broadly positive — nine Buys vs. four Holds give a consensus rating of "Moderate Buy" and a consensus target of $81.08, while several firms have recently raised targets (Oppenheimer to $100, Bank of America to $107).
• Ownership activity: Company insiders (CAO and CFO) sold shares in March reducing their stakes (insiders now own 0.74%), but institutional investors have been accumulating, and institutions own about 49.77% of the stock.

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $97.87 and last traded at $95.5190, with a volume of 1368389 shares trading hands. The stock had previously closed at $89.57.

Analyst Ratings Changes

DOCN has been the subject of several research reports. Citigroup reiterated a "buy" rating on shares of DigitalOcean in a research note on Friday, February 13th. Cantor Fitzgerald increased their target price on shares of DigitalOcean from $68.00 to $83.00 and gave the company an "overweight" rating in a research note on Wednesday, February 25th. Oppenheimer increased their target price on shares of DigitalOcean from $85.00 to $100.00 and gave the company an "outperform" rating in a research note on Wednesday, March 18th. Bank of America increased their target price on shares of DigitalOcean from $103.00 to $107.00 and gave the company a "buy" rating in a research note on Thursday, April 9th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of DigitalOcean in a research note on Friday, March 27th. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $81.08.

DigitalOcean Stock Up 6.3%

The stock has a market cap of $8.76 billion, a price-to-earnings ratio of 37.58 and a beta of 1.43. The company's 50-day moving average is $73.21 and its 200-day moving average is $56.63.

Insider Activity

In related news, CAO Cherie Barrett sold 22,000 shares of the 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 transaction, the chief accounting officer owned 62,469 shares of the company's stock, valued at $3,421,427.13. This represents a 26.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Matt Steinfort sold 20,000 shares of the stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total transaction of $1,108,000.00. Following the completion of the transaction, the chief financial officer directly owned 545,916 shares of the company's stock, valued at $30,243,746.40. This trade represents a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.74% of the company's stock.

Institutional Trading of DigitalOcean

Several hedge funds have recently modified their holdings of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of DigitalOcean by 5.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company's stock worth $11,342,000 after buying an additional 16,162 shares in the last quarter. Intech Investment Management LLC increased its holdings in shares of DigitalOcean by 59.2% during the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company's stock worth $1,317,000 after buying an additional 14,655 shares in the last quarter. Amundi increased its holdings in shares of DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company's stock worth $827,000 after buying an additional 29,107 shares in the last quarter. Jump Financial LLC acquired a new stake in shares of DigitalOcean during the second quarter worth approximately $3,212,000. Finally, Qube Research & Technologies Ltd increased its holdings in shares of DigitalOcean by 69.7% during the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company's stock worth $11,842,000 after buying an additional 170,339 shares in the last quarter. Institutional investors and hedge funds 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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