The Vanguard Group, Inc. recently announced the acquisition of new stake in DigitalOcean Holdings Inc. (NYSE:DOCN). The institutional investor has increased its shareholding in the Technology company by 23.97% to 5.99 million shares with purchase of 1.16 million shares. This fresh investment now brings its stake to 6.18% valued currently at $191.47 million. In addition, BlackRock Fund Advisors raised its holdings by 0.51 million to 3.98 million shares. And Allspring Global Investments LLC has lifted its position by 118.58% or 0.68 million shares – to 1.26 million shares.
With over 2.5 million DigitalOcean Holdings Inc. (DOCN) shares trading Tuesday and a closing price of $34.10 on the day, the dollar volume was approximately $85.19 million. The shares have shown a negative half year performance of -26.03% and its price on 03/14/23 lost nearly -0.41%. Currently, there are 96.82M common shares owned by the public and among those 68.46M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for DOCN have a consensus price objective of $39.33. The analysts have set the share’s price value over the next 12 months at a high of $63.00 and a low of $30.00. The average price target is 14.75% above its recent price level and a downside to the estimated low will see the stock lose -13.67% over that period. But an upside of 45.87% will see the stock hit the forecast high price target while median target price for the stock is $37.50.
Insiders at the company have transacted a total of 87 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 46 of these insider trades were purchases, accounting for 583,053 shares. Insider sales of the common stock occurred on 41 occasions, with total insider shares sold totaling 4,280,256 shares.
The top 3 mutual fund holders in DigitalOcean Holdings Inc. are First Trust Cloud Computing ETF, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. First Trust Cloud Computing ETF owns 2.1 million shares of the company’s stock, all valued at over $67.19 million. Vanguard Total Stock Market Index bought 3703.0 shares to see its total holdings expand to 1.92 million shares valued at over $61.44 million and representing 1.98% of the shares outstanding. Vanguard Small Cap Index Fund bought 8844.0 shares to bring its total holdings to over 1.62 million shares at a value of $51.87 million. Vanguard Small Cap Index Fund now owns shares totaling to 1.67% of the shares outstanding.
Shares of DigitalOcean Holdings Inc. (NYSE: DOCN) opened at $35.00, up $0.76 from a prior closing price of $34.24. However, the script later moved the day high at 35.89, down -0.41%. The company’s stock has a 5-day price change of -4.72% and 16.07% over the past three months. DOCN shares are trading 33.88% year to date (YTD), with the 12-month market performance down to -29.25% lower. It has a 12-month low price of $23.38 and touched a high of $63.17 over the same period. DOCN has an average intraday trading volume of 1.43 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.18%, 13.11%, and -5.91% respectively.
Institutional ownership of DigitalOcean Holdings Inc. (NYSE: DOCN) shares accounts for 54.60% of the company’s 96.82M shares outstanding. Mutual fund holders own 19.48%, while other institutional holders and individual stakeholders account for 25.38% and 16.45% respectively.
It has a market capitalization of $3.46B. The earnings-per-share (ttm) stands at -$0.24. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.85% over the week and 7.12% over the month.
Analysts forecast that DigitalOcean Holdings Inc. (DOCN) will achieve an EPS of $0.2 for the current quarter, $0.24 for the next quarter and $1.16 for 2023. The lowest estimate earnings-per-share for the quarter is $0.18 while analysts give the company a high EPS estimate of $0.25. Comparatively, EPS for the current quarter was $0.1 a year ago. Earnings per share for the fiscal year are expected to decrease by -15.10%, and 22.37% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate DigitalOcean Holdings Inc. (DOCN) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 5 of the 13 advise that investors “hold,” and 2 rated it as a “Sell.”
Looking at the support for the DOCN, a number of firms have released research notes about the stock. Piper Sandler stated their Neutral rating for the stock in a research note on January 17, 2023, with the firm’s price target at $30. Needham coverage for the DigitalOcean Holdings Inc. (DOCN) stock in a research note released on December 08, 2022 offered a Buy rating with a price target of $36. Credit Suisse was of a view on November 22, 2022 that the stock is Neutral, while JP Morgan gave the stock Neutral rating on November 08, 2022, issuing a price target of $50- $27. KeyBanc Capital Markets on their part issued Sector Weight rating on October 31, 2022.
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