DigitalOcean (NYSE:DOCN) Shares Gap Up – What’s Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN) gapped up before the market opened on Wednesday . The stock had previously closed at $38.82, but opened at $45.32. DigitalOcean shares last traded at $45.4990, with a volume of 2,697,937 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on DOCN. UBS Group began coverage on shares of DigitalOcean in a research note on Tuesday, October 7th. They set a “neutral” rating and a $40.00 price objective on the stock. Morgan Stanley increased their price objective on shares of DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a research note on Wednesday, August 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of DigitalOcean in a research note on Wednesday, October 8th. Canaccord Genuity Group increased their price objective on shares of DigitalOcean from $49.00 to $55.00 and gave the company a “buy” rating in a research note on Thursday, October 9th. Finally, Stifel Nicolaus set a $36.00 price objective on shares of DigitalOcean in a research note on Tuesday, August 5th. Six investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $42.73.

DigitalOcean Price Performance

The business’s fifty day simple moving average is $37.15 and its two-hundred day simple moving average is $32.16. The company has a market cap of $4.09 billion, a PE ratio of 34.59, a PEG ratio of 2.35 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.47 by $0.12. The firm had revenue of $218.70 million for the quarter, compared to analyst estimates of $216.62 million. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. DigitalOcean’s quarterly revenue was up 13.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.48 earnings per share. As a group, analysts predict that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current year.

Insiders Place Their Bets

In other news, insider Bratin Saha sold 13,010 shares of the company’s stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total value of $414,628.70. Following the transaction, the insider directly owned 269,465 shares in the company, valued at approximately $8,587,849.55. This represents a 4.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.74% of the stock is owned by insiders.

Institutional Trading of DigitalOcean

Several hedge funds and other institutional investors have recently made changes to their positions in the company. CX Institutional boosted its holdings in DigitalOcean by 780.5% during the second quarter. CX Institutional now owns 1,039 shares of the company’s stock worth $30,000 after buying an additional 921 shares in the last quarter. GAMMA Investing LLC boosted its holdings in DigitalOcean by 336.1% during the first quarter. GAMMA Investing LLC now owns 1,064 shares of the company’s stock worth $36,000 after buying an additional 820 shares in the last quarter. Wilmington Savings Fund Society FSB purchased a new stake in DigitalOcean during the third quarter worth about $37,000. SVB Wealth LLC purchased a new stake in shares of DigitalOcean in the first quarter valued at about $48,000. Finally, Farther Finance Advisors LLC lifted its holdings in shares of DigitalOcean by 42.3% in the second quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock valued at $55,000 after purchasing an additional 572 shares in the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

About DigitalOcean

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).