The stock of DigitalOcean Holdings Inc. (NYSE:DOCN) decreased by -$0.19 on Monday to $28.67, down -0.66 percent. The last five days have seen an average of 2,121,778 shares of common stock traded. 26 times new highs were reached in the current year, with a gain of $3.26. The average number of shares traded over the last 20 days was 2,318,435, while the average volume over the last 50 days totaled 1,817,900.
DOCN stock dropped -40.63% since last month. On 08/25/23, the company’s shares reached a one-month low of $26.90. The stock touched a high of $51.69 on 07/19/23, after rallying from a low of $23.38 in 52 weeks. The price of DOCN stock has risen by 12.56% or $3.26 this year, reaching a new high 26 times. Still, the stock price is down -44.53% from the 52-week high.
Insider Transactions
DOCN stock investors should be aware that DigitalOcean Holdings Inc. (DOCN) stock had its last reported insider trading activity 7 days ago on Aug 21. On Aug 21, Chief Operating Officer Guy Jeffrey Scott sold 10,000 shares at $32.41 each. This transaction resulted in the insider making $324,100. On Aug 14, Guy Jeffrey Scott sold 6,000 shares at a price of US$35.51. After the transaction, the insider now owns 144,262 shares. Chief Operating Officer Guy Jeffrey Scott had earlier sold 6,000 shares on Jul 10 for $46.09 a share. The transaction was completed for $276,540.
Valuation Metrics
Beta for the stock is 1.44. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.28, and the price-to-cash flow ratio of 26.59.
Financial Health
For the three months ended June 29, DigitalOcean Holdings Inc.’s quick ratio was 3.80, while its current ratio was 3.80, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 60.40% percent. DigitalOcean Holdings Inc.’s EBITDA margin for the year ended June 29 was 14.13%, whereas its operating margin stood at -6.20% for the same period. Based on annual data, it had gross profit of $364.39 million and revenue of $576.32 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. DOCN’s return on assets (ROA) during the last 12 months has been -1.00%. There was a -1.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 15.40%.
Earnings Surprise
According to DigitalOcean Holdings Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $169.46 million, while revenues rose by 21.0% to $164.26 million. It was predicted that DigitalOcean Holdings Inc.’s quarterly earnings would be $0.44, but it ended up being $0.41, beating the consensus by 7.30%. EBITDA was $26.86 million for the quarter. At the end of DigitalOcean Holdings Inc.’s most recent quarter ended June 29, its liabilities totaled 1.77 billion, while its total debt was $1.66 billion. Equity owned by shareholders amounts to $88.85 million.
Technical Picture
Here’s a quick look at DigitalOcean Holdings Inc.’s (DOCN) price momentum from a technical perspective. As of 25 August, the RSI 9-day stood at 17.92%, suggesting the stock is oversold, with a 45.81% historical volatility rate.
The stochastic %K and %D were 14.79% and 12.44% respectively, while the average true range (ATR) was 2.00. Based on the 14-day stochastic reading of 18.34%, the RSI (14) reading is 24.34%. On the 9-day MACD Oscillator, the stock is at -1.97, and the 14-day reading is at -3.34.
Analyst Ratings
In its most recent analyst report, Morgan Stanley raised its rating on DigitalOcean Holdings Inc. (NYSE: DOCN) to an Equal-weight. Prior to this, analysts firm rated the stock as an Underweight. Analysts have assigned DigitalOcean Holdings Inc. (DOCN) an Hold rating. DOCN is a stock that is recommended for selling by 2 brokerage firms, while 7 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 4 others recommend it as a buy.
What is DOCN’s price target for the next 12 months?
The current consensus forecast for the stock is between $29.00 and $59.00, with a median target price of $36.00. In analyzing these forecasts, the average price target given by analysts for DigitalOcean Holdings Inc. (DOCN) is $39.80.
