DigitalOcean Holdings, Inc. (NYSE:DOCN) Sees Significant Drop in Short Interest

DigitalOcean Holdings, Inc. (NYSE:DOCN) saw a significant drop in short interest in the month of November. As of November 30th, there was short interest totalling 6,000,000 shares, a drop of 7.7% from the November 15th total of 6,500,000 shares. Currently, 9.7% of the shares of the company are short sold. Based on an average daily volume of 1,120,000 shares, the short-interest ratio is presently 5.4 days.

Wall Street Analyst Weigh In

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

Insider Transactions at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 16,989 shares of the business’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $36.85, for a total value of $626,044.65. Following the completion of the sale, the insider now 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 transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of the business’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 sale, the chief financial officer now 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 disclosure for this sale can be found here. 0.74% of the stock is owned by corporate insiders.

Institutional Trading of DigitalOcean

Hedge funds and other institutional investors have recently bought and sold shares of the business. Farther Finance Advisors LLC bought a new stake in shares of DigitalOcean during the third quarter worth about $30,000. Advisors Asset Management Inc. increased its holdings in DigitalOcean by 150.4% during the 3rd quarter. Advisors Asset Management Inc. now owns 974 shares of the company’s stock worth $39,000 after purchasing an additional 585 shares in the last quarter. Blue Trust Inc. raised its stake in shares of DigitalOcean by 380.6% in the third quarter. Blue Trust Inc. now owns 1,211 shares of the company’s stock worth $49,000 after purchasing an additional 959 shares during the last quarter. Nisa Investment Advisors LLC lifted its holdings in shares of DigitalOcean by 56.4% in the third quarter. Nisa Investment Advisors LLC now owns 1,340 shares of the company’s stock valued at $54,000 after purchasing an additional 483 shares in the last quarter. Finally, KBC Group NV boosted its position in shares of DigitalOcean by 47.6% during the third 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 Performance

Shares of NYSE DOCN opened at $37.77 on Wednesday. The firm has a market capitalization of $3.49 billion, a P/E ratio of 44.44, a P/E/G ratio of 2.47 and a beta of 1.76. The firm’s 50-day moving average price is $39.75 and its 200-day moving average price is $37.30. DigitalOcean has a 1-year low of $26.63 and a 1-year high of $44.80.

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

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).