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

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) was the recipient of a large decline in short interest in October. As of October 31st, there was short interest totalling 5,490,000 shares, a decline of 5.3% from the October 15th total of 5,800,000 shares. Currently, 9.2% of the company's stock are sold short. Based on an average daily trading volume, of 1,240,000 shares, the days-to-cover ratio is presently 4.4 days.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently modified their holdings of DOCN. Vanguard Group Inc. raised its stake in DigitalOcean by 11.5% during the first quarter. Vanguard Group Inc. now owns 6,728,563 shares of the company's stock worth $256,897,000 after acquiring an additional 696,426 shares in the last quarter. Jacobs Levy Equity Management Inc. increased its position in DigitalOcean by 32.8% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company's stock valued at $56,449,000 after purchasing an additional 345,119 shares during the period. University of Texas Texas AM Investment Management Co. bought a new position in shares of DigitalOcean during the 2nd quarter worth approximately $11,712,000. Bank of New York Mellon Corp lifted its holdings in shares of DigitalOcean by 66.9% in the 2nd quarter. Bank of New York Mellon Corp now owns 766,043 shares of the company's stock worth $26,620,000 after purchasing an additional 307,162 shares in the last quarter. Finally, Principal Financial Group Inc. raised its position in DigitalOcean by 27.9% in the 2nd quarter. Principal Financial Group Inc. now owns 1,178,848 shares of the company's stock valued at $40,965,000 after buying an additional 257,229 shares during the last quarter. Institutional investors own 49.77% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently weighed in on the stock. UBS Group reduced their price target on shares of DigitalOcean from $40.00 to $34.00 and set a "neutral" rating for the company in a research note on Friday, August 9th. JPMorgan Chase & Co. boosted their price target on shares of DigitalOcean from $32.00 to $40.00 and gave the company a "neutral" rating in a report on Friday, October 25th. Barclays upped their price objective on shares of DigitalOcean from $38.00 to $48.00 and gave the company an "overweight" rating in a research note on Friday, October 11th. Needham & Company LLC reiterated a "hold" rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Finally, Canaccord Genuity Group upped their price objective 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 investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $41.50.

DigitalOcean Stock Performance

DOCN traded down $0.32 during trading on Monday, reaching $36.53. 487,426 shares of the stock were exchanged, compared to its average volume of 1,252,968. The stock has a market cap of $3.37 billion, a P/E ratio of 43.35, a price-to-earnings-growth ratio of 2.37 and a beta of 1.83. DigitalOcean has a twelve month low of $26.63 and a twelve month high of $44.80. The stock's 50 day moving average price is $40.67 and its two-hundred day moving average price is $36.97.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings data on Monday, November 4th. The company reported $0.52 EPS 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 firm had revenue of $198.50 million during the quarter, compared to analysts' expectations of $196.64 million. During the same period in the previous year, the business posted $0.17 earnings per share. The company's revenue for the quarter was up 12.1% compared to the same quarter last year. Equities research analysts predict that DigitalOcean will post 1.01 earnings per share for the current fiscal 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).