DigitalOcean (NYSE:DOCN) Hits New 1-Year Low Following Analyst Downgrade

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares hit a new 52-week low during mid-day trading on Monday after Stifel Nicolaus lowered their price target on the stock from $40.00 to $33.00. Stifel Nicolaus currently has a hold 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.

Several other analysts have also recently issued reports on the stock. JPMorgan Chase & Co. upped their price objective on shares of DigitalOcean from $40.00 to $45.00 and gave the company a “neutral” rating in a research note on Wednesday, February 26th. Cantor Fitzgerald raised their target price on DigitalOcean from $39.00 to $43.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 26th. Citigroup initiated coverage on shares of DigitalOcean in a report on Friday, January 24th. They issued a “buy” rating and a $45.00 target price on the stock. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a report on Monday. Finally, Morgan Stanley raised shares of DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their price target for the company from $40.00 to $41.00 in a research report on Thursday, January 16th. One equities research 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 MarketBeat, DigitalOcean has a consensus rating of “Hold” and an average price target of $42.18.

Insiders Place Their Bets

In other news, insider Bratin Saha sold 3,948 shares of the stock in a transaction dated Tuesday, March 18th. The shares were sold at an average price of $36.63, for a total transaction of $144,615.24. Following the sale, the insider now owns 358,696 shares of the company’s stock, valued at approximately $13,139,034.48. This represents a 1.09 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.74% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Norges Bank acquired a new position in shares of DigitalOcean in the fourth quarter worth $14,772,000. Jacobs Levy Equity Management Inc. increased its stake in shares of DigitalOcean by 16.6% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company’s stock worth $55,500,000 after buying an additional 231,407 shares during the period. CenterBook Partners LP acquired a new stake in DigitalOcean in the fourth quarter valued at approximately $7,633,000. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors purchased a new position in DigitalOcean in the fourth quarter worth approximately $5,382,000. Finally, Bank of New York Mellon Corp increased its position in shares of DigitalOcean by 19.7% in the 4th quarter. Bank of New York Mellon Corp now owns 791,861 shares of the company’s stock valued at $26,979,000 after purchasing an additional 130,263 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Trading Down 1.8 %

The firm has a market capitalization of $2.59 billion, a price-to-earnings ratio of 33.10, a price-to-earnings-growth ratio of 3.12 and a beta of 1.87. The stock’s fifty day moving average price is $39.39 and its two-hundred day moving average price is $38.90.

DigitalOcean Company Profile

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).