DigitalOcean (NYSE:DOCN) Shares Gap Down – Time to Sell?

by · The Markets Daily

DigitalOcean Holdings, Inc. (NYSE:DOCN – Get Free Report)’s share price gapped down before the market opened on Monday . The stock had previously closed at $40.83, but opened at $38.30. DigitalOcean shares last traded at $36.58, with a volume of 421,738 shares.

Analyst Ratings Changes

A number of research analysts have issued reports on the company. JPMorgan Chase & Co. boosted their price target on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Piper Sandler lowered their price target on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a research note on Monday, July 15th. Canaccord Genuity Group upped their target price on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, October 4th. Barclays upped their price objective on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research note on Friday, October 11th. Finally, Stifel Nicolaus boosted their target price on DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a report on Friday, August 9th. Five research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, DigitalOcean presently has an average rating of “Moderate Buy” and an average target price of $40.56.

Get Our Latest Analysis on DigitalOcean

DigitalOcean Stock Performance

The business has a fifty day simple moving average of $40.45 and a 200 day simple moving average of $36.64. The company has a market cap of $3.38 billion, a P/E ratio of 50.81, a P/E/G ratio of 3.14 and a beta of 1.83.

DigitalOcean (NYSE:DOCN – Get Free Report) last posted its earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.39 by $0.09. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The firm had revenue of $192.00 million during the quarter, compared to analysts’ expectations of $188.63 million. During the same quarter in the prior year, the firm earned $0.11 EPS. DigitalOcean’s quarterly revenue was up 13.1% on a year-over-year basis. Equities research analysts expect that DigitalOcean Holdings, Inc. will post 0.86 EPS for the current year.

Institutional Investors Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently bought and sold shares of the business. Principal Financial Group Inc. raised its holdings in DigitalOcean by 10.4% during the 3rd 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 during the period. Amalgamated Bank grew its holdings in shares of DigitalOcean by 13.5% during the third quarter. Amalgamated Bank now owns 18,552 shares of the company’s stock valued at $749,000 after buying an additional 2,205 shares in the last quarter. Harbor Capital Advisors Inc. raised its position in DigitalOcean by 369.0% during the third quarter. Harbor Capital Advisors Inc. now owns 39,518 shares of the company’s stock valued at $1,596,000 after buying an additional 31,092 shares during the period. Farther Finance Advisors LLC purchased a new stake in DigitalOcean in the 3rd quarter worth about $30,000. Finally, Creative Financial Designs Inc. ADV boosted its position in DigitalOcean by 17.8% during the 3rd quarter. Creative Financial Designs Inc. ADV now owns 3,744 shares of the company’s stock worth $151,000 after acquiring an additional 566 shares during the period. 49.77% of the stock is currently owned by institutional investors.

About DigitalOcean

(Get Free Report)

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).

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