DigitalOcean (NYSE:DOCN) Shares Gap Up – Here’s Why

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares gapped up prior to trading on Thursday . The stock had previously closed at $34.24, but opened at $35.85. DigitalOcean shares last traded at $36.30, with a volume of 152,107 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Canaccord Genuity Group boosted their target price on DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, October 4th. Barclays lifted their price objective on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, October 11th. Stifel Nicolaus lifted their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research report on Wednesday, December 18th. Finally, Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and raised their price target for the stock from $40.00 to $41.00 in a research report on Thursday. Five equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $42.00.

DigitalOcean Stock Up 4.5 %

The company has a fifty day simple moving average of $37.06 and a two-hundred day simple moving average of $37.21. The stock has a market capitalization of $3.30 billion, a P/E ratio of 42.09, a price-to-earnings-growth ratio of 2.47 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.12. The business had revenue of $198.50 million during the quarter, compared to analyst estimates of $196.64 million. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. DigitalOcean’s quarterly revenue was up 12.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.17 EPS. As a group, equities analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In related news, insider Bratin Saha sold 3,468 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $38.18, for a total transaction of $132,408.24. Following the transaction, the insider now directly owns 379,795 shares of the company’s stock, valued at approximately $14,500,573.10. The trade was a 0.90 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total transaction of $499,920.00. Following the completion of the transaction, the chief financial officer now directly owns 517,498 shares in the company, valued at $20,699,920. The trade was a 2.36 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 32,955 shares of company stock worth $1,258,373. Corporate insiders own 0.74% of the company’s stock.

Institutional Trading of DigitalOcean

Several large investors have recently bought and sold shares of the business. Geode Capital Management LLC boosted its stake in shares of DigitalOcean by 7.9% in the 3rd quarter. Geode Capital Management LLC now owns 1,464,333 shares of the company’s stock valued at $59,156,000 after purchasing an additional 106,636 shares in the last quarter. Jacobs Levy Equity Management Inc. grew its stake in shares of DigitalOcean by 32.8% during the third quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company’s stock worth $56,449,000 after buying an additional 345,119 shares during the last quarter. Principal Financial Group Inc. increased its holdings in shares of DigitalOcean by 10.4% during the third quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company’s stock worth $52,568,000 after buying an additional 122,651 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of DigitalOcean by 23.4% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company’s stock valued at $37,512,000 after acquiring an additional 205,007 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in DigitalOcean by 14.3% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 565,763 shares of the company’s stock worth $22,851,000 after acquiring an additional 70,700 shares during the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company’s platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).