DigitalOcean (NYSE:DOCN) Reaches New 52-Week High – Still a Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $46.48 and last traded at $46.72, with a volume of 264154 shares trading hands. The stock had previously closed at $44.51.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on DOCN shares. Citigroup initiated coverage on shares of DigitalOcean in a research note on Friday, January 24th. They issued a “buy” rating and a $45.00 price target on the stock. Cantor Fitzgerald began coverage on shares of DigitalOcean in a research report on Friday, January 17th. They issued a “neutral” rating and a $39.00 target price on the stock. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Morgan Stanley raised DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $40.00 to $41.00 in a research report on Thursday, January 16th. Finally, JMP Securities raised their price target on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a report on Monday, January 27th. Six research analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Based on data from MarketBeat, DigitalOcean has an average rating of “Moderate Buy” and a consensus target price of $42.73.

DigitalOcean Price Performance

The firm has a market cap of $3.96 billion, a PE ratio of 50.49, a PEG ratio of 3.38 and a beta of 1.81. The business has a 50-day moving average price of $38.56 and a two-hundred day moving average price of $38.72.

Insider Buying and Selling at DigitalOcean

In other news, insider Bratin Saha sold 3,468 shares of DigitalOcean stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $38.18, for a total transaction of $132,408.24. Following the completion of the sale, the insider now directly owns 379,795 shares in the company, valued at $14,500,573.10. The trade was a 0.90 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total transaction of $499,920.00. Following the transaction, the chief financial officer now directly owns 517,498 shares in the company, valued at $20,699,920. The trade was a 2.36 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 20,255 shares of company stock valued at $790,163 over the last quarter. Corporate insiders own 0.74% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently made changes to their positions in the business. Twinbeech Capital LP acquired a new stake in DigitalOcean in the 4th quarter worth about $398,000. ProShare Advisors LLC grew its holdings in DigitalOcean by 42.4% in the fourth quarter. ProShare Advisors LLC now owns 20,384 shares of the company’s stock valued at $694,000 after purchasing an additional 6,073 shares during the period. Interval Partners LP acquired a new position in DigitalOcean during the fourth quarter worth approximately $3,690,000. Jacobs Levy Equity Management Inc. raised its stake in DigitalOcean by 16.6% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company’s stock worth $55,500,000 after purchasing an additional 231,407 shares during the period. Finally, Janus Henderson Group PLC boosted its holdings in shares of DigitalOcean by 30.6% in the 4th quarter. Janus Henderson Group PLC now owns 242,776 shares of the company’s stock valued at $8,271,000 after purchasing an additional 56,953 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).