As of Wednesday close, DigitalOcean Holdings Inc.’s (NYSE:DOCN) stock was down -$1.24, moving down -3.57 percent to $33.48. The average number of shares traded per day over the past five days has been 1,683,780 shares. 2 times new highs have been achieved over the past 5 days, with a -$2.43 fall in that time frame. In the last twenty days, the average volume was 2,061,380, while in the previous 50 days, it was 1,813,116.
Since last month, DOCN stock retreated -32.66%. Shares of the company fell to $33.42 on 08/16/23, the lowest level in the past month. A 52-week high of $51.69 was reached on 07/19/23 after having rallying from a 52-week low of $23.38. Since the beginning of this year, DOCN’s stock price has risen by 31.45% or $8.01, and marked a new high 26 times. However, the stock has declined by -35.23% since its 52-week high.
DOCN stock investors should be aware that DigitalOcean Holdings Inc. (DOCN) stock had its last reported insider trading activity 3 days ago on Aug 14. Guy Jeffrey Scott, the Chief Operating Officer of the company, disposed of 6,000 shares for $35.51 on Aug 14. It resulted in a $213,060 divestment by the insider. Guy Jeffrey Scott sold 6,000 shares at an average price of $46.09 on Jul 10. The insider now owns 144,262 shares following the transaction. On Jun 12, Chief Operating Officer Guy Jeffrey Scott sold 5,986 shares at $44.30 apiece. The transaction was valued at $265,180.
Financial Health
In the three months ended June 29, DigitalOcean Holdings Inc.’s quick ratio stood at 3.80, while its current ratio was 3.80, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 61.40% percent. In the year ended June 29, EBITDA margin amounted to 14.13%, whereas operating margins totaled -4.40%. Based on annual data, DOCN earned $364.39 million in gross profit and brought in $576.32 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -1.70%. Return on equity (ROE) for the past 12 months was 112.30%.
In DigitalOcean Holdings Inc.’s quarter-end financial report for June 29, it reported total debt of $1.47 billion against cash and short-term investments of $430.46 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. DOCN’s revenue rose 21.0% to $164.26 million during the quarter, while net income inched up to $169.46 million. While analysts expected DigitalOcean Holdings Inc. to report $0.41 quarterly earnings, the actual figure was $0.44 per share, beating the consensus estimate by 7.30%. During the quarter, the company generated $26.86 million in EBITDA. The liabilities of DigitalOcean Holdings Inc. were 1.77 billion at the end of its most recent quarter ended June 29, and its total debt was $1.66 billion. The value of shareholders’ equity is $88.85 million.
Technical Picture
This quick technical analysis looks at DigitalOcean Holdings Inc.’s (DOCN) price momentum. With a historical volatility rate of 140.10%, the RSI 9-day stood at 23.91% on 16 August.
With respect to its five-day moving average, the current DigitalOcean Holdings Inc. price is down by -6.77% percent or -$2.43. At present, DOCN shares trade -32.91% below its 20-day simple moving average and -5.66% percent below its 100-day simple moving average. However, the stock is currently trading approximately -20.59% below its SMA50 and -9.78% below its SMA200.
Stochastic coefficient K was 5.03% and Stochastic coefficient D was 7.32%, while ATR was 2.30. Given the Stochastic reading of 0.37% for the 14-day period, the RSI (14) reading has been calculated as 30.05%. As of today, the MACD Oscillator reading stands at -0.54, while the 14-day reading stands at -5.06.
Analyst Ratings
Morgan Stanley upgraded its rating on DigitalOcean Holdings Inc. (NYSE: DOCN) to an Equal-weight in a note to investors on August 11, 2023. The analysts firm previously had an Underweight rating on the stock.DigitalOcean Holdings Inc. (DOCN) has been rated Hold by analysts. According to 2 brokerage firms, DOCN is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate DigitalOcean Holdings Inc. stock as buy, with 4 recommending it as overweight.
With a median target price of $36.00, the current consensus forecast for the stock is $29.00 – $59.00. Based on these forecasts, analysts predict DigitalOcean Holdings Inc. (DOCN) will achieve an average price target of $39.80.
