DigitalOcean (NYSE:DOCN) Shares Up 7.3% – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price rose 7.3% during mid-day trading on Wednesday . The company traded as high as $66.35 and last traded at $66.5530. Approximately 715,207 shares changed hands during trading, a decline of 77% from the average daily volume of 3,141,536 shares. The stock had previously closed at $62.01.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on DOCN shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Cantor Fitzgerald lifted their target price on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a report on Wednesday, February 25th. Piper Sandler reiterated a “neutral” rating and set a $67.00 price target on shares of DigitalOcean in a report on Tuesday, February 24th. Oppenheimer upped their price objective on DigitalOcean from $60.00 to $85.00 and gave the company an “outperform” rating in a research report on Wednesday, February 25th. Finally, The Goldman Sachs Group lifted their target price on DigitalOcean from $50.00 to $78.00 and gave the stock a “buy” rating in a report on Wednesday, February 25th. Nine research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $69.23.

DigitalOcean Stock Up 10.4%

The stock has a market capitalization of $6.30 billion, a PE ratio of 27.03, a PEG ratio of 55.91 and a beta of 1.76. The firm’s fifty day moving average price is $57.40 and its two-hundred day moving average price is $46.94.

Insider Buying and Selling

In other DigitalOcean news, CAO Cherie Barrett sold 22,000 shares of DigitalOcean stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the sale, the chief accounting officer owned 62,469 shares of the company’s stock, valued at approximately $3,421,427.13. The trade was a 26.05% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Matt Steinfort sold 20,000 shares of the business’s stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $55.40, for a total transaction of $1,108,000.00. Following the sale, the chief financial officer owned 545,916 shares of the company’s stock, valued at approximately $30,243,746.40. This represents a 3.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.74% of the company’s stock.

Institutional Trading of DigitalOcean

A number of hedge funds have recently bought and sold shares of the company. Norges Bank bought a new stake in shares of DigitalOcean during the 2nd quarter valued at about $22,633,000. Alyeska Investment Group L.P. bought a new position in shares of DigitalOcean in the 3rd quarter worth approximately $21,808,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of DigitalOcean by 90.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock worth $57,496,000 after buying an additional 568,823 shares during the last quarter. Vanguard Group Inc. boosted its holdings in shares of DigitalOcean by 5.0% in the third quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after buying an additional 442,617 shares during the last quarter. Finally, Franklin Resources Inc. grew its position in DigitalOcean by 784.2% during the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after buying an additional 438,411 shares during the period. Hedge funds and other institutional investors own 49.77% of the company’s stock.

About DigitalOcean

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.