DigitalOcean Holdings, Inc. (NYSE:DOCN) Sees Large Decline in Short Interest

DigitalOcean Holdings, Inc. (NYSE:DOCN) saw a large decrease in short interest during the month of November. As of November 30th, there was short interest totalling 6,000,000 shares, a decrease of 7.7% from the November 15th total of 6,500,000 shares. Approximately 9.7% of the company’s stock are sold short. Based on an average daily volume of 1,120,000 shares, the days-to-cover ratio is currently 5.4 days.

Insider Transactions at DigitalOcean

In other news, CFO Matt Steinfort sold 12,498 shares of the firm’s stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total value of $499,920.00. Following the sale, the chief financial officer now directly owns 517,498 shares of the company’s stock, valued at approximately $20,699,920. This trade represents a 2.36 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed 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 stock was sold at an average price of $36.85, for a total value of $626,044.65. Following 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. 0.74% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

A number of hedge funds and other institutional investors have recently bought and sold shares of DOCN. Farther Finance Advisors LLC acquired a new stake in DigitalOcean during the 3rd quarter valued at $30,000. Advisors Asset Management Inc. raised its position in shares of 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 purchasing an additional 585 shares during the period. Blue Trust Inc. lifted its stake in shares of DigitalOcean by 380.6% during the 3rd quarter. Blue Trust Inc. now owns 1,211 shares of the company’s stock worth $49,000 after buying an additional 959 shares during the last quarter. Nisa Investment Advisors LLC boosted its holdings in shares of DigitalOcean by 56.4% during the 3rd quarter. Nisa Investment Advisors LLC now owns 1,340 shares of the company’s stock worth $54,000 after buying an additional 483 shares during the period. Finally, KBC Group NV grew its stake in DigitalOcean by 47.6% in the 3rd quarter. KBC Group NV now owns 2,096 shares of the company’s stock valued at $85,000 after buying an additional 676 shares during the last quarter. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Stock Down 0.9 %

DOCN traded down $0.36 during trading on Monday, hitting $37.77. The company had a trading volume of 611,516 shares, compared to its average volume of 1,210,755. The firm’s 50-day moving average price is $39.91 and its 200 day moving average price is $37.29. DigitalOcean has a one year low of $26.63 and a one year high of $44.80. The company has a market capitalization of $3.49 billion, a PE ratio of 44.86, a PEG ratio of 2.47 and a beta of 1.76.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.12. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The firm had revenue of $198.50 million for the quarter, compared to analyst estimates of $196.64 million. During the same period in the previous year, the business earned $0.17 EPS. The company’s revenue was up 12.1% compared to the same quarter last year. Sell-side analysts forecast that DigitalOcean will post 1.01 earnings per share for the current year.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Barclays raised their price target on shares of DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research note on Friday, October 11th. JPMorgan Chase & Co. upped their price objective on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday, October 25th. Finally, Canaccord Genuity Group raised their target price on DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research report on Friday, October 4th. Five analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $41.50.

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).