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

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price hit a new 52-week low on Monday after Canaccord Genuity Group lowered their price target on the stock from $50.00 to $45.00. Canaccord Genuity Group currently has a buy rating on the stock. DigitalOcean traded as low as $25.54 and last traded at $26.05, with a volume of 242872 shares. The stock had previously closed at $28.65.

A number of other equities analysts have also weighed in on the company. Stifel Nicolaus upped their price objective on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. JMP Securities boosted their price target on shares of DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research report on Monday, January 27th. JPMorgan Chase & Co. raised their price objective 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. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a research note on Wednesday, February 26th. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of DigitalOcean in a research note on Saturday, March 1st. One analyst has rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $42.82.

Insider Buying and Selling

In related news, insider Bratin Saha sold 3,948 shares of DigitalOcean stock in a transaction that occurred on Tuesday, March 18th. The shares were sold at an average price of $36.63, for a total value of $144,615.24. Following the completion of the sale, the insider now directly owns 358,696 shares in the company, valued at $13,139,034.48. This trade represents a 1.09 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.74% of the stock is owned by company insiders.

Institutional Investors Weigh In On DigitalOcean

Large investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its position in DigitalOcean by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 8,434,555 shares of the company’s stock worth $287,365,000 after buying an additional 117,133 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its stake in shares of DigitalOcean by 16.6% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company’s stock worth $55,500,000 after purchasing an additional 231,407 shares during the period. Fuller & Thaler Asset Management Inc. increased its holdings in shares of DigitalOcean by 7.3% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 1,545,642 shares of the company’s stock valued at $52,660,000 after purchasing an additional 105,235 shares in the last quarter. First Trust Advisors LP boosted its holdings in DigitalOcean by 6.2% during the fourth quarter. First Trust Advisors LP now owns 1,533,699 shares of the company’s stock worth $52,253,000 after buying an additional 89,349 shares in the last quarter. Finally, Geode Capital Management LLC increased its holdings in DigitalOcean by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 1,473,421 shares of the company’s stock valued at $50,211,000 after buying an additional 9,088 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean Trading Down 2.0 %

The stock has a 50-day moving average price of $39.63 and a 200 day moving average price of $39.00. The stock has a market capitalization of $2.59 billion, a price-to-earnings ratio of 33.05, a PEG 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).