DigitalOcean (NYSE:DOCN) Hits New 1-Year High – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price reached a new 52-week high on Friday . The stock traded as high as $44.80 and last traded at $44.06, with a volume of 133587 shares traded. The stock had previously closed at $43.81.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on DOCN shares. Canaccord Genuity Group lifted their price objective on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research note on Friday, October 4th. Stifel Nicolaus raised their price target on DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a report on Friday, August 9th. Barclays boosted their price objective on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a report on Friday, October 11th. UBS Group decreased their price objective on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research report on Friday, August 9th. Finally, Piper Sandler dropped their target price on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a research report on Monday, July 15th. Four equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $40.63.

DigitalOcean Stock Down 1.1 %

The firm has a market capitalization of $3.95 billion, a P/E ratio of 81.74, a PEG ratio of 3.38 and a beta of 1.83. The business’s 50-day simple moving average is $39.57 and its 200 day simple moving average is $36.27.

DigitalOcean (NYSE:DOCN) last released its earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, beating the consensus estimate of $0.39 by $0.09. The company had revenue of $192.00 million for the quarter, compared to analyst estimates of $188.63 million. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The firm’s quarterly revenue was up 13.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.11 EPS. Sell-side analysts predict that DigitalOcean Holdings, Inc. will post 0.86 earnings per share for the current year.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds and other institutional investors have recently modified their holdings of DOCN. Vanguard Group Inc. increased its stake in DigitalOcean by 11.5% in the 1st quarter. Vanguard Group Inc. now owns 6,728,563 shares of the company’s stock worth $256,897,000 after purchasing an additional 696,426 shares during the period. University of Texas Texas AM Investment Management Co. bought a new stake in DigitalOcean during the 2nd quarter valued at $11,712,000. Bank of New York Mellon Corp boosted its position in DigitalOcean by 66.9% during the 2nd quarter. Bank of New York Mellon Corp now owns 766,043 shares of the company’s stock valued at $26,620,000 after buying an additional 307,162 shares during the period. Principal Financial Group Inc. grew its holdings in DigitalOcean by 27.9% in the 2nd quarter. Principal Financial Group Inc. now owns 1,178,848 shares of the company’s stock worth $40,965,000 after acquiring an additional 257,229 shares during the last quarter. Finally, Renaissance Technologies LLC increased its position in shares of DigitalOcean by 152.6% in the second quarter. Renaissance Technologies LLC now owns 375,600 shares of the company’s stock valued at $13,052,000 after acquiring an additional 226,900 shares during the period. Institutional investors own 49.77% of the company’s stock.

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).