DigitalOcean Holdings Inc. (NYSE: DOCN) stock fell -0.83% on Tuesday to $34.68 against a previous-day closing price of $34.97. With 1.18 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.64 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $35.60 whereas the lowest price it dropped to was $34.15. The 52-week range on DOCN shows that it touched its highest point at $53.88 and its lowest point at $23.38 during that stretch. It currently has a 1-year price target of $40.00.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DOCN was up-trending over the past week, with a rise of 7.14%, but this was up by 5.51% over a month. Three-month performance surged to 3.99% while six-month performance rose 22.67%. The stock lost -18.71% in the past year, while it has gained 36.16% so far this year. A look at the trailing 12-month EPS for DOCN yields -0.24 with Next year EPS estimates of 2.15. For the next quarter, that number is 0.41. This implies an EPS growth rate of -15.10% for this year and 27.68% for next year.
Float and Shares Shorts:
At present, 96.82 million DOCN shares are outstanding with a float of 68.46 million shares on hand for trading. On Apr 27, 2023, short shares totaled 14.94 million, which was 16.78% higher than short shares on Mar 30, 2023. In addition to Mr. Yancey L. Spruill as the firm’s CEO & Director, Mr. Jeffrey Scott Guy serves as its Chief Operating Officer.
Through their ownership of 60.30% of DOCN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 25.20% of DOCN, in contrast to 21.55% held by mutual funds. Shares owned by individuals account for 16.41%. As the largest shareholder in DOCN with 6.18% of the stake, The Vanguard Group, Inc. holds 5,987,091 shares worth 5,987,091. A second-largest stockholder of DOCN, BlackRock Fund Advisors, holds 3,983,496 shares, controlling over 4.11% of the firm’s shares. AllianceBernstein LP is the third largest shareholder in DOCN, holding 2,737,749 shares or 2.82% stake. With a 2.01% stake in DOCN, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 1,947,020 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.70% of DOCN stock, is the second-largest Mutual Fund holder. It holds 1,649,535 shares valued at 52.03 million. iShares Russell 2000 ETF holds 1.52% of the stake in DOCN, owning 1,474,120 shares worth 46.49 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, DOCN reported revenue of $133.88M and operating income of -$7.38M. The EBITDA in the recently reported quarter was $19.08M and diluted EPS was -$0.06.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DOCN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DOCN analysts setting a high price target of $63.00 and a low target of $30.00, the average target price over the next 12 months is $39.20. Based on these targets, DOCN could surge 81.66% to reach the target high and fall by -13.49% to reach the target low. Reaching the average price target will result in a growth of 13.03% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded DOCN stock several times over the past three months with 15 Buys and 13 Sells. In these transactions, 294,776 shares were bought while 55,079 shares were sold. The number of buy transactions has increased to 53 while that of sell transactions has risen to 52 over the past year. The total number of shares bought during that period was 1,271,326 while 4,318,530 shares were sold.