Investors Getting Picky When It Comes To Buying DigitalOcean Holdings Inc (DOCN)

DigitalOcean Holdings Inc (NYSE:DOCN) does about 1.34M shares in volume on a normal day but saw 4139974 shares change hands in Friday’s trading. The company now has a market cap of 3.27B USD. Its current market price is $35.91, marking an increase of 10.22% compared to the previous close of $32.58. The 52 week high reached by this stock is $51.69 whilst the lowest price level in 52 weeks is $19.39.

DigitalOcean Holdings Inc (DOCN) has a 20-day trading average at $33.71 and the current price is -30.53% off the 52-week high compared with 85.20% distance from its 52-week low. The 50-day simple moving average of the closing price is $36.53 and its 200-day simple moving average is $32.43. If we look at the stock’s price movements over the week, volatility stands at 3.90%, which increases to 3.90% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 54.63 to suggest the stock is neutral.

The consensus objective for the share price is $38.96, suggesting that the stock has a potential upside of 7.83% over the period.

The company shares received a number of brokerage firm price updates over the past month, with the latest being on November 21, 2023 when Oppenheimer upgraded the stock to “Outperform” and issued a price target of $37. Goldman also upgraded the stock to “Buy” from Sell on November 07, 2023 at a price target of $33. Piper Sandler upgraded its price target at $30-$22.

DigitalOcean Holdings Inc (DOCN) stock is up 4.88% over the week and -1.56% over the past month. Its price is -2.13% year-to-date and 10.15% over the past year.

To reach the target analysts have set, the stock logically needs to grow 7.83 percent from here.

The company has a return on investment of 3.87% and return on equity of -39.11%. The price to earnings ratio (P/E ratio) amounts to 69.38 while the forward price to earnings ratio is 19.43. The beta has a value of 1.81. Price to sales ratio is 4.60.