Digitalocean Holdings Stock Buy Hold or Sell Recommendation
| DOCN Stock | USD 32.71 0.26 0.80% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding DigitalOcean Holdings is 'Strong Hold'. Macroaxis provides DigitalOcean Holdings buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding DOCN positions. The advice algorithm takes into account all of DigitalOcean Holdings' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting DigitalOcean Holdings' buy or sell advice are summarized below:
Real Value 29.05 | Target Price 33.44 | Hype Value 32.44 | Market Value 32.71 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell DigitalOcean Holdings given historical horizon and risk tolerance towards DigitalOcean Holdings. When Macroaxis issues a 'buy' or 'sell' recommendation for DigitalOcean Holdings, the advice is generated through an automated system that utilizes algorithms and statistical models.
DigitalOcean |
Execute DigitalOcean Holdings Buy or Sell Advice
The DigitalOcean recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on DigitalOcean Holdings. Macroaxis does not own or have any residual interests in DigitalOcean Holdings or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute DigitalOcean Holdings' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
DigitalOcean Holdings Trading Alerts and Improvement Suggestions
| DigitalOcean Holdings has high likelihood to experience some financial distress in the next 2 years | |
| About 33.0% of the company shares are held by company insiders | |
| Latest headline from finance.yahoo.com: Q4 Earnings Roundup DigitalOcean And The Rest Of The Data Storage Segment |
DigitalOcean Holdings Returns Distribution Density
The distribution of DigitalOcean Holdings' historical returns is an attempt to chart the uncertainty of DigitalOcean Holdings' future price movements. The chart of the probability distribution of DigitalOcean Holdings daily returns describes the distribution of returns around its average expected value. We use DigitalOcean Holdings price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of DigitalOcean Holdings returns is essential to provide solid investment advice for DigitalOcean Holdings.
| Mean Return | -0.05 | Value At Risk | -3.96 | Potential Upside | 4.36 | Standard Deviation | 2.97 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of DigitalOcean Holdings historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
DigitalOcean Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as DigitalOcean Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading DigitalOcean Holdings backward and forwards among themselves. DigitalOcean Holdings' institutional investor refers to the entity that pools money to purchase DigitalOcean Holdings' securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Goldman Sachs Group Inc | 2023-12-31 | 898.6 K | Principal Financial Group Inc | 2023-12-31 | 861 K | Jacobs Levy Equity Management, Inc. | 2023-09-30 | 784 K | Dimensional Fund Advisors, Inc. | 2023-12-31 | 774.4 K | Fuller & Thaler Asset Management Inc | 2023-12-31 | 711.2 K | Hood River Capital Management Llc | 2023-12-31 | 692.4 K | Mubadala Investment Company Pjsc | 2023-12-31 | 596.4 K | Fmr Inc | 2023-12-31 | 594.7 K | Northern Trust Corp | 2023-12-31 | 568.9 K | Vanguard Group Inc | 2023-12-31 | 6 M | Blackrock Inc | 2023-12-31 | 5.2 M |
DigitalOcean Holdings Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Investments | (87.4M) | (115.5M) | (113.6M) | (718.3M) | 301.8M | 316.9M | |
| Change In Cash | 2.3M | 66.7M | 1.6B | (1.6B) | 167.2M | 175.5M | |
| Net Borrowings | 44.0M | 65.0M | 1.2B | (1.5M) | (1.7M) | (1.7M) | |
| Free Cash Flow | (44.6M) | (57.5M) | 24.0M | 74.9M | 110.1M | 115.6M | |
| Depreciation | 63.1M | 75.6M | 88.4M | 102.2M | 117.9M | 91.6M | |
| Other Non Cash Items | 11.9M | 26.2M | 1.5M | 29.9M | 32.6M | 21.0M | |
| Capital Expenditures | 84.5M | 115.7M | 109.1M | 120.2M | 124.8M | 112.8M | |
| Net Income | (40.4M) | (43.6M) | (19.5M) | (24.3M) | 19.4M | 20.4M | |
| End Period Cash Flow | 35.9M | 102.5M | 1.7B | 151.8M | 319.0M | 432.3M | |
| Change To Netincome | 30.5M | 55.7M | 72.2M | 128.1M | 147.3M | 154.7M |
DigitalOcean Holdings Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to DigitalOcean Holdings or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that DigitalOcean Holdings' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a DigitalOcean stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.28 | |
β | Beta against NYSE Composite | 2.79 | |
σ | Overall volatility | 2.99 | |
Ir | Information ratio | -0.05 |
DigitalOcean Holdings Volatility Alert
DigitalOcean Holdings exhibits very low volatility with skewness of 0.28 and kurtosis of 0.83. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DigitalOcean Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact DigitalOcean Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.DigitalOcean Holdings Implied Volatility
DigitalOcean Holdings' implied volatility exposes the market's sentiment of DigitalOcean Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if DigitalOcean Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that DigitalOcean Holdings stock will not fluctuate a lot when DigitalOcean Holdings' options are near their expiration.
DigitalOcean Holdings Fundamentals Vs Peers
Comparing DigitalOcean Holdings' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze DigitalOcean Holdings' direct or indirect competition across all of the common fundamentals between DigitalOcean Holdings and the related equities. This way, we can detect undervalued stocks with similar characteristics as DigitalOcean Holdings or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of DigitalOcean Holdings' fundamental indicators could also be used in its relative valuation, which is a method of valuing DigitalOcean Holdings by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare DigitalOcean Holdings to competition |
| Fundamentals | DigitalOcean Holdings | Peer Average |
| Return On Equity | -0.39 | -0.31 |
| Return On Asset | 0.0254 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.25 % | (5.51) % |
| Current Valuation | 4.19 B | 16.62 B |
| Shares Outstanding | 91.19 M | 571.82 M |
| Shares Owned By Insiders | 33.24 % | 10.09 % |
| Shares Owned By Institutions | 52.20 % | 39.21 % |
| Number Of Shares Shorted | 6.49 M | 4.71 M |
| Price To Book | 67.92 X | 9.51 X |
| Price To Sales | 4.60 X | 11.42 X |
| Revenue | 692.88 M | 9.43 B |
| Gross Profit | 364.39 M | 27.38 B |
| EBITDA | 174.47 M | 3.9 B |
| Net Income | 19.41 M | 570.98 M |
| Cash And Equivalents | 1.17 B | 2.7 B |
| Cash Per Share | 12.03 X | 5.01 X |
| Total Debt | 1.66 B | 5.32 B |
| Current Ratio | 16.59 X | 2.16 X |
| Book Value Per Share | (3.48) X | 1.93 K |
| Cash Flow From Operations | 234.94 M | 971.22 M |
| Short Ratio | 6.81 X | 4.00 X |
| Earnings Per Share | 0.20 X | 3.12 X |
| Price To Earnings To Growth | 1.87 X | 4.89 X |
| Target Price | 39.22 | |
| Number Of Employees | 1.16 K | 18.84 K |
| Beta | 1.79 | -0.15 |
| Market Capitalization | 2.96 B | 19.03 B |
| Total Asset | 1.46 B | 29.47 B |
| Retained Earnings | (344.24 M) | 9.33 B |
| Working Capital | 310.35 M | 1.48 B |
| Net Asset | 1.46 B |
Note: Disposition of 1535 shares by Warren Adelman of DigitalOcean Holdings at 36.48 subject to Rule 16b-3 [view details]
DigitalOcean Holdings Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as DigitalOcean . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 32938.41 | |||
| Daily Balance Of Power | 0.2185 | |||
| Rate Of Daily Change | 1.01 | |||
| Day Median Price | 32.41 | |||
| Day Typical Price | 32.51 | |||
| Price Action Indicator | 0.44 | |||
| Period Momentum Indicator | 0.26 |
About DigitalOcean Holdings Buy or Sell Advice
When is the right time to buy or sell DigitalOcean Holdings? Buying financial instruments such as DigitalOcean Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Total Current Liabilities | 58.2M | 164.3M | 192.6M | 116.6M | Other Current Liabilities | 8.8M | 79.9M | 96.8M | 50.4M |
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Check out DigitalOcean Holdings Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in DigitalOcean Stock, please use our How to Invest in DigitalOcean Holdings guide.Note that the DigitalOcean Holdings information on this page should be used as a complementary analysis to other DigitalOcean Holdings' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Complementary Tools for DigitalOcean Stock analysis
When running DigitalOcean Holdings' price analysis, check to measure DigitalOcean Holdings' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DigitalOcean Holdings is operating at the current time. Most of DigitalOcean Holdings' value examination focuses on studying past and present price action to predict the probability of DigitalOcean Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move DigitalOcean Holdings' price. Additionally, you may evaluate how the addition of DigitalOcean Holdings to your portfolios can decrease your overall portfolio volatility.
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Is DigitalOcean Holdings' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of DigitalOcean Holdings. If investors know DigitalOcean will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about DigitalOcean Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.525 | Earnings Share 0.2 | Revenue Per Share 7.687 | Quarterly Revenue Growth 0.11 | Return On Assets 0.0254 |
The market value of DigitalOcean Holdings is measured differently than its book value, which is the value of DigitalOcean that is recorded on the company's balance sheet. Investors also form their own opinion of DigitalOcean Holdings' value that differs from its market value or its book value, called intrinsic value, which is DigitalOcean Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because DigitalOcean Holdings' market value can be influenced by many factors that don't directly affect DigitalOcean Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between DigitalOcean Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if DigitalOcean Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, DigitalOcean Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.