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

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) 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.

Wall Street Analyst Weigh In

A number of equities analysts have commented on DOCN shares. Barclays boosted their price target on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research report on Friday, October 11th. JPMorgan Chase & Co. increased their price target on DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday, October 25th. Canaccord Genuity Group lifted their price objective on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research report on Friday, October 4th. Cantor Fitzgerald initiated coverage on DigitalOcean in a report on Friday. They set a “neutral” rating and a $39.00 target price on the stock. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Six 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 company presently has a consensus rating of “Hold” and a consensus target price of $41.70.

DigitalOcean Price Performance

The company’s 50 day simple moving average is $36.85 and its 200 day simple moving average is $37.18. The stock has a market cap of $3.33 billion, a P/E ratio of 42.47, a P/E/G ratio of 2.47 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.12. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The company had revenue of $198.50 million during the quarter, compared to the consensus estimate of $196.64 million. During the same period in the prior year, the company earned $0.17 earnings per share. The company’s revenue for the quarter was up 12.1% compared to the same quarter last year. On average, equities research analysts predict that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In other news, CFO Matt Steinfort sold 12,498 shares of the company’s stock in a transaction that occurred on Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total transaction of $499,920.00. Following the sale, the chief financial officer now owns 517,498 shares in the company, valued at $20,699,920. This represents a 2.36 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, insider Bratin Saha sold 3,468 shares of the firm’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $38.18, for a total transaction of $132,408.24. Following the completion of the transaction, the insider now directly owns 379,795 shares of the company’s stock, valued at $14,500,573.10. This represents a 0.90 % 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 institutional investors and hedge funds have recently bought and sold shares of the business. Point72 Hong Kong Ltd acquired a new position in DigitalOcean in the 2nd quarter valued at about $877,000. Versor Investments LP acquired a new position in shares of DigitalOcean in the third quarter valued at approximately $751,000. Public Sector Pension Investment Board bought a new position in shares of DigitalOcean during the second quarter worth approximately $4,108,000. University of Texas Texas AM Investment Management Co. acquired a new stake in DigitalOcean during the 2nd quarter worth approximately $11,712,000. Finally, FORA Capital LLC bought a new stake in DigitalOcean in the 3rd quarter valued at $1,149,000. Institutional investors own 49.77% of the company’s stock.

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).