DigitalOcean Holdings Inc. (NYSE:DOCN) finished Thursday with a subtraction of -$0.9 to close at $35.01, a downside of -2.51 percent. An average of 3,984,120 shares of common stock have been traded in the last five days. There was a fall of -$11.67 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 2,015,215 shares traded, while the 50-day average volume stands at 1,846,368.
DOCN stock has decreased by -26.94% in the last month. The company shares reached their 1-month lowest point of $34.30 on 08/04/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $23.38 and a high of $53.88 in 52 weeks. It has reached a new high 26 times so far this year and achieved 37.46% or $9.54 in price. In spite of this, the price is down -35.02% from the 52-week high.
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Insider Transactions
DOCN stock investors should be aware that DigitalOcean Holdings Inc. (DOCN) stock had its last reported insider trading activity 32 days ago on Jul 10. In this transaction, the insider spent $276,540. Chief Operating Officer, Guy Jeffrey Scott, disposed of 5,986 shares at a price of $44.30 on Jun 12. The insider now owns more than $265,180 worth of shares. Prior to that, Chief People Officer Norman Harold Matthew went on to Sale 10,000 shares at $45.00 each on Jun 06. An amount of $450,000 was transacted.
Valuation Metrics
DigitalOcean Holdings Inc. (DOCN) stock’s beta is 1.32. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 6.73, and the price-to-cash flow ratio at 59.40.
Financial Health
The quick ratio of DigitalOcean Holdings Inc. for the three months ended March 30 was 3.80, and the current ratio was 3.80, indicating that the company is able to meet its debt obligations. DigitalOcean Holdings Inc.’s EBITDA margin for the year ending March 30 is 14.13%, while its operating margin for the same period stands at -4.40%. Its gross profit as reported stood at $364.39 million compared to revenue of $576.32 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, DigitalOcean Holdings Inc.’s return on assets was -1.50%.
Earnings Surprise
For the three-month period that ended March 30, DigitalOcean Holdings Inc. had $591.68 million in cash and short-term investments compared to $1.47 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$34.94 million in the quarter, while revenues were grew 48.14%. The analyst consensus anticipated DigitalOcean Holdings Inc.’s latest quarter earnings to come in at $0.28 per share, but it turned out to be $0.28, a 0.00% surprise. For the quarter, EBITDA amounted to -$7.06 million. Shareholders own equity worth $88.81 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at DigitalOcean Holdings Inc. (DOCN) price momentum. RSI 9-day as of the close on 10 August was 23.64%, suggesting the stock is oversold, with historical volatility in this time frame at 139.68%.
As of today, DOCN’s price is $35.54 -25.00% or -$11.67 from its 5-day moving average. DOCN is currently trading -28.58% lower than its 20-day SMA and +2.73% higher than its 100-day SMA. However, the stock’s current price level is -4.86% below the SMA50 and -4.03% below the SMA200.
The stochastic %K and %D were 8.70% and 8.71%, respectively, and the average true range (ATR) was 2.70. With the 14-day stochastic at 4.64% and the average true range at 2.58, the RSI (14) stands at 30.81%. The stock has reached -5.37 on the 9-day MACD Oscillator while the 14-day reading was at -7.65.
Analyst Ratings
Piper Sandler downgraded DigitalOcean Holdings Inc. (NYSE: DOCN) to a an Underweight rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for DigitalOcean Holdings Inc. (DOCN) among analysts is Hold. According to current brokerage recommendations, 3 brokerage firms advise that investors sell DOCN, while 6 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 4 others rate it as a “buy”.
What is DOCN’s price target for the next 12 months?
Analysts predict a range of price targets between $29.00 and $59.00, with a median target of $35.00. Taking a look at these predictions, the average price target given by analysts for DigitalOcean Holdings Inc. (DOCN) stock is $39.20.
