DigitalOcean (NYSE:DOCN) Hits New 52-Week High – Should You Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) hit a new 52-week high on Wednesday . The company traded as high as $90.74 and last traded at $87.2480, with a volume of 539386 shares trading hands. The stock had previously closed at $85.78.

Analyst Ratings Changes

DOCN has been the topic of several research reports. Cantor Fitzgerald increased their target price on DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 25th. Bank of America lifted their target price on DigitalOcean from $72.00 to $86.00 and gave the company a “buy” rating in a research report on Wednesday, February 25th. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a research note on Friday. Royal Bank Of Canada set a $60.00 price target on shares of DigitalOcean in a research report on Tuesday, February 24th. Finally, Stifel Nicolaus set a $57.00 price objective on shares of DigitalOcean in a research note on Tuesday, February 24th. Nine research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $72.08.

DigitalOcean Stock Up 3.2%

The stock has a market capitalization of $8.14 billion, a PE ratio of 34.56 and a beta of 1.76. The stock has a fifty day moving average of $65.65 and a 200-day moving average of $51.85.

Insider Transactions at DigitalOcean

In related news, CFO Matt Steinfort sold 20,000 shares of the company’s stock in a transaction that occurred 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 sale, the chief financial officer directly owned 545,916 shares in the company, valued at approximately $30,243,746.40. This represents a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Cherie Barrett sold 22,000 shares of the firm’s stock in a transaction that occurred 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 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. 0.74% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in DOCN. Bullseye Asset Management LLC lifted its stake in DigitalOcean by 267.8% during the third quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company’s stock worth $3,392,000 after purchasing an additional 72,300 shares during the last quarter. Allspring Global Investments Holdings LLC boosted its holdings in DigitalOcean by 39.4% in the third quarter. Allspring Global Investments Holdings LLC now owns 300,299 shares of the company’s stock valued at $10,772,000 after purchasing an additional 84,816 shares in the last quarter. Penserra Capital Management LLC increased its stake in DigitalOcean by 27.2% in the third quarter. Penserra Capital Management LLC now owns 293,132 shares of the company’s stock valued at $10,013,000 after purchasing an additional 62,725 shares during the last quarter. Segall Bryant & Hamill LLC acquired a new stake in DigitalOcean during the third quarter worth approximately $8,951,000. Finally, Van Berkom & Associates Inc. raised its holdings in DigitalOcean by 33.1% during the third quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock worth $53,460,000 after purchasing an additional 389,161 shares in the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

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.