The stock of DigitalOcean Holdings Inc (NYSE: DOCN) has increased by 3.86 when compared to last closing price of 34.24. Despite this, the company has experienced a 3.13% gain in its stock price over the last five trading sessions. fool.com reported 2025-01-14 that Americans only have a median savings of $8,000 across all of their checking, money market, savings, call accounts, and prepaid debit cards, according to the Federal Reserve’s latest numbers. That amount only covers cash and doesn’t include any stocks, which are still only held by 62% of all American adults, according to a Gallup survey.
Is It Worth Investing in DigitalOcean Holdings Inc (NYSE: DOCN) Right Now?
DigitalOcean Holdings Inc (NYSE: DOCN) has a higher price-to-earnings ratio of 41.88x compared to its average ratio, The 36-month beta value for DOCN is at 1.78. Analysts have varying views on the stock, with 3 analysts rating it as a “buy,” 3 rating it as “overweight,” 6 as “hold,” and 0 as “sell.”
The public float for DOCN is 62.18M, and currently, shorts hold a 9.26% of that float. The average trading volume for DOCN on January 16, 2025 was 866.77K shares.
DOCN’s Market Performance
DOCN’s stock has seen a 3.13% increase for the week, with a -6.74% drop in the past month and a -19.18% fall in the past quarter. The volatility ratio for the week is 3.34%, and the volatility levels for the past 30 days are at 3.74% for DigitalOcean Holdings Inc The simple moving average for the last 20 days is 1.61% for DOCN stock, with a simple moving average of -3.14% for the last 200 days.
Analysts’ Opinion of DOCN
UBS, on the other hand, stated in their research note that they expect to see DOCN reach a price target of $40. The rating they have provided for DOCN stocks is “Neutral” according to the report published on May 22nd, 2024.
Oppenheimer gave a rating of “Outperform” to DOCN, setting the target price at $37 in the report published on November 21st of the previous year.
DOCN Trading at -3.98% from the 50-Day Moving Average
After a stumble in the market that brought DOCN to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -20.62% of loss for the given period.
Volatility was left at 3.74%, however, over the last 30 days, the volatility rate increased by 3.34%, as shares sank -5.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -12.38% lower at present.
During the last 5 trading sessions, DOCN rose by +3.76%, which changed the moving average for the period of 200-days by -6.27% in comparison to the 20-day moving average, which settled at $35.01. In addition, DigitalOcean Holdings Inc saw 4.37% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DOCN starting from Saha Bratin, who sale 3,468 shares at the price of $38.18 back on Dec 18 ’24. After this action, Saha Bratin now owns 379,795 shares of DigitalOcean Holdings Inc, valued at $132,408 using the latest closing price.
Saha Bratin, the Officer of DigitalOcean Holdings Inc, proposed sale 3,468 shares at $38.18 during a trade that took place back on Dec 18 ’24, which means that Saha Bratin is holding shares at $132,408 based on the most recent closing price.
Stock Fundamentals for DOCN
Current profitability levels for the company are sitting at:
- 0.09 for the present operating margin
- 0.6 for the gross margin
The net margin for DigitalOcean Holdings Inc stands at 0.11. The total capital return value is set at 0.05.
Based on DigitalOcean Holdings Inc (DOCN), the company’s capital structure generated 1.15 points at debt to capital in total, while cash flow to debt ratio is standing at 0.18. The debt to equity ratio resting at -7.68. The interest coverage ratio of the stock is 7.55.
Currently, EBITDA for the company is 153.59 million with net debt to EBITDA at 5.31. When we switch over and look at the enterprise to sales, we see a ratio of 5.9. The receivables turnover for the company is 8.57for trailing twelve months and the total asset turnover is 0.5. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.14.
Conclusion
In conclusion, DigitalOcean Holdings Inc (DOCN) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
