DigitalOcean Holdings Inc (DOCN) presents a great opportunity, but the stock is slightly undervalued

While DigitalOcean Holdings Inc has underperformed by -4.67%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, DOCN rose by 13.53%, with highs and lows ranging from $51.69 to $19.39, whereas the simple moving average fell by -2.18% in the last 200 days.

On November 21, 2023, Oppenheimer Upgraded DigitalOcean Holdings Inc (NYSE: DOCN) to Outperform.

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Analysis of DigitalOcean Holdings Inc (DOCN)

Further, the quarter-over-quarter increase in sales is 16.40%, showing a positive trend in the upcoming months.

DigitalOcean Holdings Inc’s future performance can be predicted by a variety of well-rounded types of analysis and research, with equity being one of the most crucial ones. The goal here is to ensure that your current return on equity of -39.11% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 2.56, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.

For any stock, average volume can be an extremely valuable indicator of volatility, and DOCN is registering an average volume of 1.17M. On a monthly basis, the volatility of the stock is set at 3.72%, whereas on a weekly basis, it is put at 4.74%, with a loss of -4.87% over the past seven days. Furthermore, long-term investors anticipate a median target price of $35.20, showing growth from the present price of $32.65, which can serve as yet another indication of whether DOCN is worth investing in or should be passed over.

How Do You Analyze DigitalOcean Holdings Inc Shares?

Besides checking the fundamentals, you should also know how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 43.53%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 44.36% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.

Are institutional investors increasing their holdings in DOCN shares?

The recent increase in stakes in DOCN appears to be a result of several institutional investors and hedge funds increasing their positions. The Vanguard Group, Inc.’s position in DOCN has increased by 3.37% in the first quarter. The company now owns 6,218,341 shares of the stock, with a value of $228.15 million, following the purchase of 202,993 additional shares during the last quarter. BlackRock Fund Advisors made another decreased to its shares in DOCN during the first quarter, downing its stake by -1.75%. During the last quarter, the company picked up -69,237 additional shares for a total stake of worth $142.51 million, bringing number of shares owned by the company to 3,884,143.

During the first quarter, First Trust Advisors LP added a 210,947 position in DOCN. Van Berkom & Associates, Inc. purchased an additional 0.29 million shares in the last quarter, increasing its holdings by 25.24%, now holding 1.43 million shares worth $52.52 million. At the end of the first quarter, SSgA Funds Management, Inc. decreased its DOCN holdings by -0.94% and now holds 1.31 million DOCN shares valued at $48.15 million with the lessened 12410.0 shares during the period. DOCN shares are owned by institutional investors to the tune of 44.36% at present.

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