DigitalOcean (NYSE:DOCN) Trading 9% Higher – Time to Buy?

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

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Citigroup reiterated a “buy” rating on shares of DigitalOcean in a research report on Friday. Oppenheimer began coverage on DigitalOcean in a research report on Monday, November 10th. They issued an “outperform” rating and a $60.00 price target on the stock. Wall Street Zen cut shares of DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. Finally, Piper Sandler upped their price target on shares of DigitalOcean from $47.00 to $50.00 and gave the stock a “neutral” rating in a report on Monday, January 5th. Eight analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus price target of $52.25.

DigitalOcean Stock Up 6.5%

The firm has a 50 day moving average of $52.96 and a 200 day moving average of $42.97. The firm has a market cap of $6.21 billion, a price-to-earnings ratio of 27.38, a PEG ratio of 8.77 and a beta of 1.77.

Institutional Investors Weigh In On DigitalOcean

Several large investors have recently made changes to their positions in the business. Norges Bank purchased a new position in shares of DigitalOcean in the second quarter worth about $22,633,000. Alyeska Investment Group L.P. bought a new position in DigitalOcean in the 3rd quarter worth approximately $21,808,000. Vanguard Group Inc. grew its stake in DigitalOcean by 5.0% in the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after buying an additional 442,617 shares in the last quarter. Franklin Resources Inc. raised its holdings in DigitalOcean by 784.2% during the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after acquiring an additional 438,411 shares during the period. Finally, Danske Bank A S purchased a new stake in shares of DigitalOcean during the third quarter worth $14,582,000. 49.77% of the stock is owned by hedge funds and other institutional investors.

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.