DigitalOcean (NASDAQ:DOCN) Shares Gap Down to $35.05

DigitalOcean Holdings, Inc. (NASDAQ:DOCN – Get Rating) shares gapped down prior to trading on Friday . The stock had previously closed at $35.05, but opened at $33.80. DigitalOcean shares last traded at $32.72, with a volume of 344,880 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Morgan Stanley upped their price objective on DigitalOcean from $28.00 to $30.00 and gave the stock an “underweight” rating in a report on Friday, February 17th. Credit Suisse Group upped their price objective on DigitalOcean from $31.00 to $34.00 and gave the stock a “neutral” rating in a report on Friday, February 17th. Oppenheimer downgraded DigitalOcean from an “outperform” rating to a “market perform” rating and set a $40.00 price objective on the stock. in a report on Friday. Barclays upped their price objective on DigitalOcean from $32.00 to $42.00 in a report on Friday, February 17th. Finally, Canaccord Genuity Group upped their price objective on DigitalOcean from $40.00 to $46.00 and gave the stock a “buy” rating in a report on Tuesday, February 21st. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and six have issued a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $40.54.

DigitalOcean Stock Performance

The stock has a 50 day moving average price of $31.15 and a two-hundred day moving average price of $32.40. The company has a debt-to-equity ratio of 28.78, a current ratio of 5.76 and a quick ratio of 5.76.

DigitalOcean (NASDAQ:DOCN – Get Rating) last posted its quarterly earnings results on Thursday, February 16th. The company reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.19 by $0.09. The company had revenue of $163.00 million for the quarter, compared to the consensus estimate of $161.10 million. DigitalOcean had a negative return on equity of 2.36% and a negative net margin of 4.21%. The firm’s quarterly revenue was up 36.2% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.11) EPS. On average, analysts expect that DigitalOcean Holdings, Inc. will post 0.49 earnings per share for the current fiscal year.

Insider Activity at DigitalOcean

In related news, CMO Carly D. Brantz sold 106,419 shares of the company’s stock in a transaction on Tuesday, February 21st. The shares were sold at an average price of $34.42, for a total value of $3,662,941.98. Following the completion of the sale, the chief marketing officer now owns 76,358 shares in the company, valued at approximately $2,628,242.36. The transaction was disclosed in a filing with the SEC, which is available through this link. In related news, COO Jeffrey Scott Guy sold 5,600 shares of the company’s stock in a transaction on Tuesday, March 14th. The shares were sold at an average price of $35.00, for a total value of $196,000.00. Following the completion of the sale, the chief operating officer now owns 165,958 shares in the company, valued at approximately $5,808,530. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CMO Carly D. Brantz sold 106,419 shares of the company’s stock in a transaction on Tuesday, February 21st. The shares were sold at an average price of $34.42, for a total transaction of $3,662,941.98. Following the completion of the sale, the chief marketing officer now owns 76,358 shares of the company’s stock, valued at approximately $2,628,242.36. The disclosure for this sale can be found here. Insiders sold a total of 177,657 shares of company stock worth $6,141,092 in the last quarter. Corporate insiders own 4.10% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

A number of large investors have recently added to or reduced their stakes in DOCN. Bank of New York Mellon Corp increased its holdings in DigitalOcean by 113.0% during the 1st quarter. Bank of New York Mellon Corp now owns 422,843 shares of the company’s stock worth $24,461,000 after purchasing an additional 224,357 shares in the last quarter. US Bancorp DE bought a new position in DigitalOcean during the 1st quarter worth about $308,000. Cambridge Investment Research Advisors Inc. increased its holdings in DigitalOcean by 20.1% during the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 7,978 shares of the company’s stock worth $462,000 after purchasing an additional 1,333 shares in the last quarter. Citigroup Inc. boosted its stake in shares of DigitalOcean by 2.4% during the 1st quarter. Citigroup Inc. now owns 55,300 shares of the company’s stock worth $3,198,000 after buying an additional 1,287 shares during the last quarter. Finally, PNC Financial Services Group Inc. boosted its stake in shares of DigitalOcean by 77.0% during the 1st quarter. PNC Financial Services Group Inc. now owns 5,414 shares of the company’s stock worth $313,000 after buying an additional 2,356 shares during the last quarter. Institutional investors own 52.00% of the company’s stock.

About DigitalOcean

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DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. Its platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and medium size businesses. The company offers infrastructure solutions across compute, storage, and networking, as well as enables developers to extend the native capabilities of its cloud with fully managed application, container, and database offerings.