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

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares gapped down prior to trading on Thursday . The stock had previously closed at $29.87, but opened at $28.72. DigitalOcean shares last traded at $28.58, with a volume of 500,258 shares.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on DOCN. Needham & Company LLC reiterated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, May 6th. Bank of America increased their price target on shares of DigitalOcean from $28.00 to $31.00 and gave the stock an “underperform” rating in a research report on Wednesday, February 26th. JPMorgan Chase & Co. boosted their price objective on shares of DigitalOcean from $40.00 to $45.00 and gave the company a “neutral” rating in a research report on Wednesday, February 26th. Barclays decreased their target price on DigitalOcean from $48.00 to $38.00 and set an “overweight” rating on the stock in a report on Monday, April 21st. Finally, Citigroup cut their price target on DigitalOcean from $50.00 to $40.00 and set a “buy” rating for the company in a report on Wednesday, May 7th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and six have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $39.83.

DigitalOcean Trading Up 3.2%

The firm has a market cap of $2.61 billion, a price-to-earnings ratio of 33.72, a P/E/G ratio of 3.12 and a beta of 1.78. The stock’s fifty day moving average price is $29.34 and its 200-day moving average price is $35.32.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Tuesday, May 6th. The company reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.11. DigitalOcean had a net margin of 10.86% and a negative return on equity of 43.11%. The company had revenue of $210.70 million during the quarter, compared to analyst estimates of $208.63 million. During the same quarter last year, the firm posted $0.43 earnings per share. DigitalOcean’s revenue was up 14.1% compared to the same quarter last year. Analysts predict that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current year.

Insider Transactions at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 3,948 shares of the company’s stock in a transaction on Tuesday, March 18th. The shares were sold at an average price of $36.63, for a total value of $144,615.24. Following the completion of the transaction, the insider now owns 358,696 shares in the company, valued at $13,139,034.48. This represents a 1.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC boosted its stake in shares of DigitalOcean by 336.1% during the 1st quarter. GAMMA Investing LLC now owns 1,064 shares of the company’s stock worth $36,000 after acquiring an additional 820 shares in the last quarter. Farther Finance Advisors LLC raised its holdings in DigitalOcean by 135,100.0% during the first quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company’s stock worth $46,000 after purchasing an additional 1,351 shares during the last quarter. SVB Wealth LLC purchased a new stake in DigitalOcean during the first quarter worth $48,000. SBI Securities Co. Ltd. acquired a new stake in DigitalOcean in the fourth quarter valued at $66,000. Finally, Advisors Asset Management Inc. grew its holdings in DigitalOcean by 39.6% in the first quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company’s stock valued at $74,000 after purchasing an additional 632 shares during the last quarter. 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).