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

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $38.73, but opened at $40.00. DigitalOcean shares last traded at $39.81, with a volume of 190,459 shares changing hands.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on DOCN shares. Barclays raised their price target on DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research note on Friday, October 11th. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Citigroup began coverage on shares of DigitalOcean in a research note on Friday. They issued a “buy” rating and a $45.00 target price on the stock. Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $40.00 to $41.00 in a research report on Thursday, January 16th. Finally, Canaccord Genuity Group lifted their price target on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, October 4th. Six research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $42.00.

DigitalOcean Stock Performance

The company has a market cap of $3.85 billion, a P/E ratio of 49.14, a P/E/G ratio of 2.77 and a beta of 1.78. The stock’s fifty day moving average price is $36.77 and its two-hundred day moving average price is $37.26.

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

Insider Activity

In related news, CFO Matt Steinfort sold 12,498 shares of the firm’s stock in a transaction that occurred on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total value of $499,920.00. Following the completion of the transaction, the chief financial officer now owns 517,498 shares in the company, valued at $20,699,920. This trade represents a 2.36 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Bratin Saha sold 16,989 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $36.85, for a total transaction of $626,044.65. Following the completion of the transaction, the insider now owns 390,296 shares of the company’s stock, valued at approximately $14,382,407.60. This trade represents a 4.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 37,244 shares of company stock worth $1,416,208. Insiders own 0.74% of the company’s stock.

Institutional Trading of DigitalOcean

Several institutional investors have recently modified their holdings of DOCN. Harbor Investment Advisory LLC grew its position in shares of DigitalOcean by 380.0% in the 4th quarter. Harbor Investment Advisory LLC now owns 720 shares of the company’s stock valued at $25,000 after buying an additional 570 shares during the last quarter. Farther Finance Advisors LLC bought a new stake in DigitalOcean in the third quarter valued at approximately $30,000. Advisors Asset Management Inc. boosted its holdings in DigitalOcean by 150.4% in the third quarter. Advisors Asset Management Inc. now owns 974 shares of the company’s stock valued at $39,000 after acquiring an additional 585 shares during the last quarter. Blue Trust Inc. increased its position in DigitalOcean by 380.6% during the 3rd quarter. Blue Trust Inc. now owns 1,211 shares of the company’s stock valued at $49,000 after purchasing an additional 959 shares during the period. Finally, JTC Employer Solutions Trustee Ltd bought a new position in DigitalOcean during the 4th quarter worth approximately $45,000. 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).