DigitalOcean Holdings Inc (NYSE: DOCN)’s stock price has plunge by -2.10relation to previous closing price of 29.50. Nevertheless, the company has seen a -3.31% plunge in its stock price over the last five trading sessions. fool.com reported 2025-06-11 that SoundHound AI (SOUN -2.29%) is a leader in conversational artificial intelligence (AI), which is capable of understanding voice prompts and responding in kind. The company’s revenue is soaring, but it’s burning through significant amounts of cash to fuel its growth.
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 26.45x compared to its average ratio. DOCN has 36-month beta value of 1.78. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 4 as “overweight,” 6 as “hold,” and 0 as “sell.”
The public float for DOCN is 61.54M, and currently, short sellers hold a 13.41% ratio of that float. The average trading volume of DOCN on June 12, 2025 was 1.48M shares.
DOCN’s Market Performance
DOCN’s stock has seen a -3.31% decrease for the week, with a -8.64% drop in the past month and a -20.00% fall in the past quarter. The volatility ratio for the week is 2.21%, and the volatility levels for the past 30 days are at 3.00% for DigitalOcean Holdings Inc The simple moving average for the past 20 days is -1.24% for DOCN’s stock, with a -21.41% simple moving average for the past 200 days.
Analysts’ Opinion of DOCN
Many brokerage firms have already submitted their reports for DOCN stocks, with Citigroup repeating the rating for DOCN by listing it as a “Buy.” The predicted price for DOCN in the upcoming period, according to Citigroup is $45 based on the research report published on January 24, 2025 of the current year 2025.
Cantor Fitzgerald, on the other hand, stated in their research note that they expect to see DOCN reach a price target of $39. The rating they have provided for DOCN stocks is “Neutral” according to the report published on January 17th, 2025.
Morgan Stanley gave a rating of “Overweight” to DOCN, setting the target price at $41 in the report published on January 16th of the current year.
DOCN Trading at -2.15% 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 -38.58% of loss for the given period.
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Insider Trading
Reports are indicating that there were more than several insider trading activities at DOCN starting from Butte Amy, who sale 5,417 shares at the price of $29.06 back on Jun 09 ’25. After this action, Butte Amy now owns 31,000 shares of DigitalOcean Holdings Inc, valued at $157,418 using the latest closing price.
Butte Amy, the Director of DigitalOcean Holdings Inc, proposed sale 5,417 shares at $29.06 during a trade that took place back on Jun 09 ’25, which means that Butte Amy is holding shares at $157,418 based on the most recent closing price.
Stock Fundamentals for DOCN
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.6 for the gross margin
The net margin for DigitalOcean Holdings Inc stands at 0.13. The total capital return value is set at 0.08.
Based on DigitalOcean Holdings Inc (DOCN), the company’s capital structure generated 1.14 points at debt to capital in total, while cash flow to debt ratio is standing at 0.16. The debt to equity ratio resting at -8.27. The interest coverage ratio of the stock is 12.99.
Currently, EBITDA for the company is 236.86 million with net debt to EBITDA at 5.29. When we switch over and look at the enterprise to sales, we see a ratio of 4.97. The receivables turnover for the company is 10.53for trailing twelve months and the total asset turnover is 0.49. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.42.
Conclusion
To put it simply, DigitalOcean Holdings Inc (DOCN) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as 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.
