DigitalOcean (NYSE:DOCN) Reaches New 12-Month Low Following Analyst Downgrade

DigitalOcean Holdings, Inc. (NYSE:DOCN) reached a new 52-week low during trading on Monday after Stifel Nicolaus lowered their price target on the stock from $40.00 to $33.00. Stifel Nicolaus currently has a hold rating on the stock. DigitalOcean traded as low as $25.54 and last traded at $26.05, with a volume of 242872 shares trading hands. The stock had previously closed at $28.65.

A number of other brokerages also recently commented on DOCN. The Goldman Sachs Group reaffirmed a “buy” rating on shares of DigitalOcean in a research note on Saturday, March 1st. Canaccord Genuity Group lowered their target price on DigitalOcean from $50.00 to $45.00 and set a “buy” rating for the company in a report on Monday. Citigroup initiated coverage on shares of DigitalOcean in a research report on Friday, January 24th. They issued a “buy” rating and a $45.00 price target for the company. JPMorgan Chase & Co. upped their target price on shares of DigitalOcean from $40.00 to $45.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 26th. Finally, Bank of America raised their price target on DigitalOcean from $28.00 to $31.00 and gave the company an “underperform” rating in a research note on Wednesday, February 26th. One research analyst has rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $42.18.

Insider Transactions at DigitalOcean

In other news, insider Bratin Saha sold 4,289 shares of the business’s stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total transaction of $157,835.20. Following the transaction, the insider now directly owns 372,762 shares in the company, valued at $13,717,641.60. The trade was a 1.14 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 0.74% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Institutional investors have recently added to or reduced their stakes in the business. Harbor Investment Advisory LLC lifted its holdings in shares of DigitalOcean by 380.0% in the 4th quarter. Harbor Investment Advisory LLC now owns 720 shares of the company’s stock valued at $25,000 after buying an additional 570 shares during the period. JTC Employer Solutions Trustee Ltd purchased a new stake in shares of DigitalOcean during the 4th quarter worth $45,000. SBI Securities Co. Ltd. acquired a new stake in shares of DigitalOcean in the fourth quarter valued at about $66,000. KBC Group NV boosted its holdings in DigitalOcean by 37.6% during the fourth quarter. KBC Group NV now owns 2,884 shares of the company’s stock worth $98,000 after buying an additional 788 shares in the last quarter. Finally, New Age Alpha Advisors LLC acquired a new position in DigitalOcean during the fourth quarter worth about $115,000. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Stock Performance

The stock’s 50-day moving average price is $38.74 and its 200-day moving average price is $38.68. The company has a market capitalization of $2.37 billion, a price-to-earnings ratio of 30.26, a P/E/G ratio of 3.12 and a beta of 1.87.

About DigitalOcean

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).