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

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) 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. The stock had previously closed at $44.51.

Wall Street Analysts Forecast Growth

DOCN has been the topic of several research analyst reports. JMP Securities raised their price objective on DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a report on Monday, January 27th. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. JPMorgan Chase & Co. increased their price objective on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Stifel Nicolaus boosted their target price on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. Finally, Citigroup assumed 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. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $42.73.

DigitalOcean Trading Down 3.1 %

The firm has a market cap of $3.96 billion, a price-to-earnings ratio of 50.49, a P/E/G ratio of 3.38 and a beta of 1.81. The stock’s fifty day moving average price is $38.56 and its 200-day moving average price is $38.72.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction on Wednesday, December 4th. The stock was 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. This represents a 2.36 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Bratin Saha sold 4,289 shares of DigitalOcean stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total value of $157,835.20. Following the completion of the sale, the insider now directly owns 372,762 shares of the company’s stock, valued at $13,717,641.60. The trade was a 1.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 20,255 shares of company stock worth $790,163 over the last quarter. 0.74% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently bought and sold shares of the company. Hillsdale Investment Management Inc. lifted its position in shares of DigitalOcean by 0.4% during the fourth quarter. Hillsdale Investment Management Inc. now owns 84,500 shares of the company’s stock worth $2,879,000 after purchasing an additional 300 shares in the last quarter. Focus Partners Wealth lifted its holdings in DigitalOcean by 2.8% during the 4th quarter. Focus Partners Wealth now owns 12,455 shares of the company’s stock worth $424,000 after buying an additional 338 shares in the last quarter. Summit Investment Advisors Inc. boosted its position in DigitalOcean by 6.8% in the 4th quarter. Summit Investment Advisors Inc. now owns 6,866 shares of the company’s stock valued at $234,000 after buying an additional 436 shares during the period. Nisa Investment Advisors LLC grew its stake in shares of DigitalOcean by 56.4% in the third quarter. Nisa Investment Advisors LLC now owns 1,340 shares of the company’s stock worth $54,000 after acquiring an additional 483 shares in the last quarter. Finally, Creative Financial Designs Inc. ADV increased its position in shares of DigitalOcean by 17.8% during the third quarter. Creative Financial Designs Inc. ADV now owns 3,744 shares of the company’s stock worth $151,000 after acquiring an additional 566 shares during the period. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

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).