Update from DigitalOcean Holdings Inc. (DOCN): A steady trajectory

DigitalOcean Holdings Inc. (NYSE: DOCN) closed the day trading at $28.39 down -1.29% from the previous closing price of $28.76. In other words, the price has decreased by -$0.37 from its previous closing price. On the day, 524605 shares were traded. DOCN stock price reached its highest trading level at $29.26 during the session, while it also had its lowest trading level at $28.07.

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Ratios:

For a better understanding of DOCN, let’s look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 3.18 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 16.87. For the most recent quarter (mrq), Quick Ratio is recorded 9.20 and its Current Ratio is at 9.20. In the meantime, Its Debt-to-Equity ratio is 48.62 whereas as Long-Term Debt/Eq ratio is at 48.62.

Upgrades & Downgrades

On December 08, 2022, Needham started tracking the stock assigning a Buy rating and target price of $36.

On November 22, 2022, Credit Suisse started tracking the stock assigning a Neutral rating and target price of $31.Credit Suisse initiated its Neutral rating on November 22, 2022, with a $31 target price.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Dec 01 when Norman Harold Matthew sold 17,500 shares for $29.28 per share. The transaction valued at 512,400 led to the insider holds 155,054 shares of the business.

Brantz Carly D sold 1,773 shares of DOCN for $56,027 on Nov 16. The Chief Marketing Officer now owns 85,916 shares after completing the transaction at $31.60 per share. On Oct 04, another insider, Monroy Gabriel, who serves as the Chief Product Officer of the company, sold 3,495 shares for $40.10 each. As a result, the insider received 140,150 and left with 84,791 shares of the company.

Valuation Measures:

For the stock, the TTM Price-to-Sale (P/S) ratio is 4.91 while its Price-to-Book (P/B) ratio in mrq is 91.58.

Stock Price History:

Over the past 52 weeks, DOCN has reached a high of $66.28, while it has fallen to a 52-week low of $23.38. The 50-Day Moving Average of the stock is 27.70, while the 200-Day Moving Average is calculated to be 38.12.

Shares Statistics:

Over the past 3-months, DOCN traded about 1.34M shares per day on average, while over the past 10 days, DOCN traded about 905.42k shares per day. A total of 96.56M shares are outstanding, with a floating share count of 68.46M. Insiders hold about 4.60% of the company’s shares, while institutions hold 54.60% stake in the company. Shares short for DOCN as of Oct 13, 2022 were 9.81M with a Short Ratio of 9.61M, compared to 8.83M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 10.12% and a Short% of Float of 14.16%.

Earnings Estimates

Current recommendations for the stock of the company come from 12 analysts. On average, analysts expect EPS of $0.23 for the current quarter, with a high estimate of $0.25 and a low estimate of $0.22, while EPS last year was $0.12. The consensus estimate for the next quarter is $0.26, with high estimates of $0.31 and low estimates of $0.24.

Analysts are recommending an EPS of between $0.81 and $0.73 for the fiscal current year, implying an average EPS of $0.75. EPS for the following year is $1.25, with 12 analysts recommending between $1.47 and $1.01.

Revenue Estimates

A total of 12 analysts have provided revenue estimates for DOCN’s current fiscal year. The highest revenue estimate was $589.7M, while the lowest revenue estimate was $563.73M, resulting in an average revenue estimate of $573.23M. In the same quarter a year ago, actual revenue was $428.56M, up 33.80% from the average estimate. Based on 12 analysts’ estimates, the company’s revenue will be $760.44M in the next fiscal year. The high estimate is $817.6M and the low estimate is $704.1M. The average revenue growth estimate for next year is up 32.70% from the average revenue estimate for this year.