DigitalOcean (NYSE:DOCN) Stock Price Down 4.3% on Insider Selling

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price fell 4.3% during trading on Wednesday following insider selling activity. The company traded as low as $52.38 and last traded at $53.03. 1,590,713 shares were traded during mid-day trading, a decline of 51% from the average session volume of 3,226,484 shares. The stock had previously closed at $55.40.

Specifically, CAO Cherie Barrett sold 22,000 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the transaction, the chief accounting officer directly owned 62,469 shares in the company, valued at approximately $3,421,427.13. This represents a 26.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Matt Steinfort sold 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the sale, the chief financial officer directly owned 545,916 shares in the company, valued at $30,243,746.40. This trade represents a 3.53% decrease in their position. The SEC filing for this sale provides additional information.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on DOCN. Royal Bank Of Canada set a $60.00 target price on shares of DigitalOcean in a research report on Tuesday, February 24th. Citigroup restated a “buy” rating on shares of DigitalOcean in a report on Friday, February 13th. Barclays lifted their price objective on DigitalOcean from $63.00 to $69.00 and gave the company an “overweight” rating in a research report on Wednesday, February 25th. The Goldman Sachs Group raised their price target on DigitalOcean from $50.00 to $78.00 and gave the stock a “buy” rating in a research note on Wednesday, February 25th. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $67.00 price objective on shares of DigitalOcean in a research note on Tuesday, February 24th. Nine investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $69.23.

DigitalOcean Stock Performance

The business’s 50 day moving average price is $56.79 and its 200-day moving average price is $46.10. The company has a market cap of $4.81 billion, a price-to-earnings ratio of 20.66, a PEG ratio of 53.84 and a beta of 1.76.

Institutional Trading of DigitalOcean

A number of large investors have recently bought and sold shares of DOCN. Allworth Financial LP lifted its position in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares in the last quarter. Huntington National Bank raised its position in DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company’s stock worth $29,000 after purchasing an additional 517 shares during the last quarter. NBC Securities Inc. acquired a new position in DigitalOcean during the 4th quarter worth $32,000. Wilmington Savings Fund Society FSB bought a new position in DigitalOcean in the 3rd quarter valued at $37,000. Finally, Transamerica Financial Advisors LLC increased its stake in shares of DigitalOcean by 417.9% in the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock valued at $38,000 after buying an additional 631 shares during the period. 49.77% of the stock is currently owned by institutional investors.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.