DigitalOcean (NYSE:DOCN) Sees Unusually-High Trading Volume – Time to Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) saw strong trading volume on Monday . 2,733,974 shares traded hands during mid-day trading, an increase of 134% from the previous session’s volume of 1,167,571 shares.The stock last traded at $37.19 and had previously closed at $39.30.

Analysts Set New Price Targets

Several research firms recently weighed in on DOCN. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Morgan Stanley raised shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $40.00 to $41.00 in a research note on Thursday, January 16th. Stifel Nicolaus increased their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. JMP Securities lifted their price objective on DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a research report on Monday, January 27th. Finally, Citigroup assumed coverage on DigitalOcean in a research report on Friday, January 24th. They issued a “buy” rating and a $45.00 target price for the company. Six investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $42.40.

DigitalOcean Stock Down 5.4 %

The firm has a market capitalization of $3.43 billion, a P/E ratio of 43.74, a P/E/G ratio of 3.12 and a beta of 1.81. The company has a fifty day simple moving average of $38.66 and a 200 day simple moving average of $38.99.

Insider Buying and Selling

In related news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total value of $499,920.00. Following the transaction, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. This represents a 2.36 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Bratin Saha sold 4,289 shares of the stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total value of $157,835.20. Following the sale, the insider now owns 372,762 shares in the company, valued at approximately $13,717,641.60. This represents a 1.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 20,255 shares of company stock worth $790,163 in the last quarter. Corporate insiders own 0.74% of the company’s stock.

Institutional Trading of DigitalOcean

A number of institutional investors have recently made changes to their positions in the stock. Harbor Investment Advisory LLC lifted its position in DigitalOcean by 380.0% during the fourth quarter. Harbor Investment Advisory LLC now owns 720 shares of the company’s stock valued at $25,000 after purchasing an additional 570 shares during the period. Farther Finance Advisors LLC bought a new position in shares of DigitalOcean during the 3rd quarter valued at $30,000. Advisors Asset Management Inc. boosted its stake in shares of DigitalOcean by 150.4% in the 3rd quarter. Advisors Asset Management Inc. now owns 974 shares of the company’s stock worth $39,000 after buying an additional 585 shares during the last quarter. JTC Employer Solutions Trustee Ltd bought a new stake in shares of DigitalOcean in the fourth quarter worth $45,000. Finally, Blue Trust Inc. grew its holdings in shares of DigitalOcean by 380.6% in the third quarter. Blue Trust Inc. now owns 1,211 shares of the company’s stock worth $49,000 after acquiring an additional 959 shares during the period. Hedge funds and other 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).