DigitalOcean (NYSE:DOCN) Shares Down 5.1% – Here’s Why

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) fell 5.1% during mid-day trading on Monday . The stock traded as low as $38.65 and last traded at $39.35. 472,863 shares traded hands during mid-day trading, a decline of 53% from the average session volume of 1,016,459 shares. The stock had previously closed at $41.48.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Stifel Nicolaus increased their target price on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. JPMorgan Chase & Co. raised their price objective on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday, October 25th. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. Barclays boosted 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. Finally, Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and increased their price objective for the company from $40.00 to $41.00 in a research note on Thursday, January 16th. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to data from MarketBeat, DigitalOcean currently has a consensus rating of “Moderate Buy” and a consensus price target of $42.73.

DigitalOcean Trading Down 2.1 %

The business has a fifty day moving average price of $37.17 and a 200 day moving average price of $37.64. The firm has a market cap of $3.75 billion, a PE ratio of 47.64, a P/E/G ratio of 3.01 and a beta of 1.81.

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

Insider Buying and Selling

In other news, insider Bratin Saha sold 16,989 shares of DigitalOcean stock in a transaction on Monday, November 18th. The shares were sold at an average price of $36.85, for a total value of $626,044.65. Following the transaction, the insider now directly owns 390,296 shares of the company’s stock, valued at $14,382,407.60. The trade was a 4.17 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction 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 of the company’s stock, valued at approximately $20,699,920. This represents a 2.36 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 37,244 shares of company stock worth $1,416,208 in the last ninety days. 0.74% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

Institutional investors have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB raised its position in DigitalOcean by 21.6% during the 4th quarter. Handelsbanken Fonder AB now owns 13,500 shares of the company’s stock worth $460,000 after buying an additional 2,400 shares during the last quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors purchased a new position in DigitalOcean during the fourth quarter worth about $5,382,000. Truist Financial Corp lifted its position in DigitalOcean by 4.4% in the fourth quarter. Truist Financial Corp now owns 20,480 shares of the company’s stock valued at $698,000 after purchasing an additional 869 shares during the period. Sanctuary Advisors LLC purchased a new stake in DigitalOcean in the 4th quarter valued at approximately $174,000. Finally, Strategic Financial Concepts LLC acquired a new position in DigitalOcean during the 4th quarter worth approximately $580,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

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).