DigitalOcean (NYSE:DOCN) Stock Price Down 4.8% – Should You Sell?

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares dropped 4.8% on Monday . The stock traded as low as $85.36 and last traded at $85.6930. Approximately 1,202,185 shares changed hands during trading, a decline of 67% from the average daily volume of 3,651,965 shares. The stock had previously closed at $90.01.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on DOCN shares. Cantor Fitzgerald increased their price target on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a report on Wednesday, February 25th. Stifel Nicolaus set a $57.00 price target on shares of DigitalOcean in a report on Tuesday, February 24th. Barclays lifted their price objective on DigitalOcean from $63.00 to $69.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 25th. Bank of America increased their price target on shares of DigitalOcean from $72.00 to $86.00 and gave the stock a “buy” rating in a research note on Wednesday, February 25th. Finally, The Goldman Sachs Group increased their price target on shares of DigitalOcean from $50.00 to $78.00 and gave the stock a “buy” rating in a research note on Wednesday, February 25th. Nine equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $72.08.

DigitalOcean Trading Down 3.0%

The firm has a market capitalization of $8.03 billion, a P/E ratio of 34.45 and a beta of 1.43. The stock has a 50 day simple moving average of $67.83 and a 200-day simple moving average of $52.96.

Insider Activity

In other news, CFO Matt Steinfort sold 20,000 shares of DigitalOcean stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total transaction of $1,108,000.00. Following the transaction, the chief financial officer directly owned 545,916 shares of the company’s stock, valued at $30,243,746.40. The trade was a 3.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Cherie Barrett sold 22,000 shares of the business’s 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 transaction, the chief accounting officer owned 62,469 shares of the company’s stock, valued at approximately $3,421,427.13. This trade represents a 26.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.96% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DOCN. Maryland State Retirement & Pension System grew its position in shares of DigitalOcean by 1.9% during the fourth quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock worth $481,000 after purchasing an additional 185 shares in the last quarter. Allworth Financial LP grew its position in DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after acquiring an additional 255 shares in the last quarter. CWM LLC increased its position in shares of DigitalOcean by 1.3% during the 4th quarter. CWM LLC now owns 20,971 shares of the company’s stock valued at $1,009,000 after purchasing an additional 270 shares during the last quarter. Oregon Public Employees Retirement Fund lifted its position in DigitalOcean by 2.6% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 15,729 shares of the company’s stock worth $757,000 after buying an additional 398 shares during the last quarter. Finally, GAMMA Investing LLC boosted its stake in DigitalOcean by 33.8% during the fourth quarter. GAMMA Investing LLC now owns 1,581 shares of the company’s stock worth $76,000 after buying an additional 399 shares during the period. 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.