DigitalOcean (NYSE:DOCN) Trading Up 9% – What’s Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price was up 9% during mid-day trading on Friday . The company traded as high as $69.72 and last traded at $69.5450. Approximately 2,227,040 shares traded hands during trading, a decline of 26% from the average daily volume of 3,010,147 shares. The stock had previously closed at $63.78.

Analyst Ratings Changes

Several brokerages have commented on DOCN. Wall Street Zen downgraded DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. UBS Group raised their price objective on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th. Piper Sandler boosted their price objective on shares of DigitalOcean from $47.00 to $50.00 and gave the company a “neutral” rating in a research note on Monday, January 5th. Barclays increased their target price on shares of DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a research note on Monday, January 12th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 29th. Eight analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $52.25.

DigitalOcean Price Performance

The firm has a market capitalization of $6.21 billion, a PE ratio of 27.38, a P/E/G ratio of 8.77 and a beta of 1.77. The business’s 50 day moving average is $52.96 and its two-hundred day moving average is $42.97.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Penserra Capital Management LLC bought a new position in DigitalOcean during the 2nd quarter valued at approximately $6,580,000. Allspring Global Investments Holdings LLC boosted its holdings in shares of DigitalOcean by 25.5% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 215,483 shares of the company’s stock valued at $6,038,000 after buying an additional 43,732 shares in the last quarter. Jennison Associates LLC purchased a new stake in DigitalOcean in the second quarter worth about $455,000. Cherry Creek Investment Advisors Inc. grew its stake in shares of DigitalOcean by 18.7% in the 2nd quarter. Cherry Creek Investment Advisors Inc. now owns 45,831 shares of the company’s stock worth $1,309,000 after buying an additional 7,228 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of DigitalOcean by 248.2% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 45,302 shares of the company’s stock valued at $1,294,000 after acquiring an additional 32,290 shares in the last quarter. Institutional investors 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.