DigitalOcean Holdings Inc. [DOCN] is -51.75% lower this YTD. Is it still time to buy?


DigitalOcean Holdings Inc. [NYSE: DOCN] loss -16.29% on the last trading session, reaching $38.76 price per share at the time. The company report on July 8, 2022 that DigitalOcean Second Quarter 2022 Earnings Conference Call.

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DigitalOcean Holdings, Inc. (NYSE: DOCN), the cloud for developers, startups and SMBs, today announced that it will publish financial results for the second quarter 2022 following the close of U.S. financial markets on Monday, August 8, 2022. The earnings release, webcast link and any accompanying materials will be posted to the DigitalOcean investor relations website at

The company will also hold a conference call on the same day at 4:30 PM ET to discuss its financial results and financial outlook with the investment community. The conference call can be accessed by dialing (888) 330-3637 with conference ID 7741047.

DigitalOcean Holdings Inc. represents 106.98 million in outstanding shares, while the company has a total market value of $3.89 billion with the latest information. DOCN stock price has been found in the range of $38.58 to $41.81.

If compared to the average trading volume of 2.40M shares, DOCN reached a trading volume of 5579680 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about DigitalOcean Holdings Inc. [DOCN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DOCN shares is $59.20 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DOCN stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Morgan Stanley have made an estimate for DigitalOcean Holdings Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on July 11, 2022. While these analysts kept the previous recommendation, Goldman raised their target price to Buy. The new note on the price target was released on May 12, 2022, representing the official price target for DigitalOcean Holdings Inc. stock. Previously, the target price had yet another raise to $72, while Piper Sandler analysts kept a Overweight rating on DOCN stock.

The Average True Range (ATR) for DigitalOcean Holdings Inc. is set at 3.49, with the Price to Sales ratio for DOCN stock in the period of the last 12 months amounting to 8.42. The Price to Book ratio for the last quarter was 9.69, with the Price to Cash per share for the same quarter was set at 15.49. Price to Free Cash Flow for DOCN in the course of the last twelve months was 28.55 with Quick ratio for the last quarter at 25.80.

Trading performance analysis for DOCN stock

DigitalOcean Holdings Inc. [DOCN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.69. With this latest performance, DOCN shares dropped by -17.92% in over the last four-week period, additionally sinking by -45.27% over the last 6 months – not to mention a drop of -32.52% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DOCN stock in for the last two-week period is set at 40.67, with the RSI for the last a single of trading hit 36.12, and the three-weeks RSI is set at 43.07 for DigitalOcean Holdings Inc. [DOCN]. The present Moving Average for the last 50 days of trading for this stock 42.36, while it was recorded at 43.91 for the last single week of trading, and 65.62 for the last 200 days.

DigitalOcean Holdings Inc. [DOCN]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and DigitalOcean Holdings Inc. [DOCN] shares currently have an operating margin of -3.24 and a Gross Margin at +60.19. DigitalOcean Holdings Inc.’s Net Margin is presently recorded at -4.55.

Return on Equity for this stock declined to -7.71, with Return on Assets sitting at -1.54.

DigitalOcean Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 25.80 and a Current Ratio set at 25.80.

DigitalOcean Holdings Inc. [DOCN]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DOCN. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for DigitalOcean Holdings Inc. go to 58.70%.

An analysis of insider ownership at DigitalOcean Holdings Inc. [DOCN]

There are presently around $2,436 million, or 55.50% of DOCN stock, in the hands of institutional investors. The top three institutional holders of DOCN stocks are: IA VENTURE PARTNERS, LLC with ownership of 7,404,482, which is approximately New of the company’s market cap and around 4.40% of the total institutional ownership; IA VENTURE STRATEGIES FUND II, LP, holding 7,404,482 shares of the stock with an approximate value of $287.0 million in DOCN stocks shares; and VANGUARD GROUP INC, currently with $175.62 million in DOCN stock with ownership of nearly 0.031% of the company’s market capitalization.

Positions in DigitalOcean Holdings Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 203 institutional holders increased their position in DigitalOcean Holdings Inc. [NYSE:DOCN] by around 18,213,640 shares. Additionally, 120 investors decreased positions by around 13,979,716 shares, while 34 investors held positions by with 30,665,431 shares. The mentioned changes placed institutional holdings at 62,858,787 shares, according to the latest SEC report filing. DOCN stock had 76 new institutional investments in for a total of 9,418,693 shares, while 61 institutional investors sold positions of 6,966,254 shares during the same period.