DigitalOcean (NYSE:DOCN) Sets New 1-Year High - Here's Why

Key Points

• DigitalOcean (DOCN) hit a new 52-week high
• Analysts are largely bullish—nine Buys vs. four Holds—with a consensus rating of "Moderate Buy" and an average target of $88, while several firms recently raised price targets (Bank of America to $107, Goldman to $78, Canaccord to $80).
• There was notable insider selling in early March (CAO sold 22,000 shares at $54.77; CFO sold 20,000 at $55.40), leaving insiders with 0.96% ownership while institutional investors hold about 49.8%.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) shares reached a new 52-week high during trading on Friday . The stock traded as high as $104.00 and last traded at $100.7920, with a volume of 288718 shares. The stock had previously closed at $96.43.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. The Goldman Sachs Group raised their price objective on shares of DigitalOcean from $50.00 to $78.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. Canaccord Genuity Group raised their price objective on shares of DigitalOcean from $65.00 to $80.00 and gave the stock a "buy" rating in a report on Friday, February 20th. Wall Street Zen downgraded shares of DigitalOcean from a "buy" rating to a "hold" rating in a report on Sunday, January 4th. Bank of America raised their price target on shares of DigitalOcean from $103.00 to $107.00 and gave the company a "buy" rating in a report on Thursday, April 9th. Finally, Royal Bank Of Canada set a $60.00 price target on shares of DigitalOcean in a report on Tuesday, February 24th. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $88.00.

DigitalOcean Trading Up 5.7%

The company's fifty day simple moving average is $77.95 and its 200 day simple moving average is $59.59. The stock has a market capitalization of $10.63 billion, a P/E ratio of 40.23 and a beta of 1.43.

Insider Buying and Selling at DigitalOcean

In other news, 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 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. The trade was a 26.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Matt Steinfort sold 20,000 shares of DigitalOcean stock in a transaction on 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 sale, the chief financial officer directly owned 545,916 shares of the company's stock, 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. 0.96% of the stock is owned by company insiders.

Institutional Trading of DigitalOcean

A number of hedge funds have recently made changes to their positions in the stock. Maryland State Retirement & Pension System lifted its holdings in shares of DigitalOcean by 1.9% during the 4th quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company's stock worth $481,000 after acquiring an additional 185 shares during the last quarter. Allworth Financial LP lifted its holdings in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company's stock worth $25,000 after acquiring an additional 255 shares during the last quarter. CWM LLC lifted its holdings in shares of DigitalOcean by 1.3% during the 4th quarter. CWM LLC now owns 20,971 shares of the company's stock worth $1,009,000 after acquiring an additional 270 shares during the last quarter. Banque Cantonale Vaudoise purchased a new position in DigitalOcean in the 1st quarter worth $33,000. Finally, Whittier Trust Co. of Nevada Inc. lifted its stake in DigitalOcean by 76.4% in the first quarter. Whittier Trust Co. of Nevada Inc. now owns 912 shares of the company's stock worth $79,000 after purchasing an additional 395 shares during the last quarter. 49.77% of the stock is 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.