DigitalOcean (NYSE:DOCN) Shares Down 5.1% - What's Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) was down 5.1% during trading on Monday . The stock traded as low as $38.65 and last traded at $39.35. Approximately 472,863 shares changed hands during trading, a decline of 53% from the average daily volume of 1,016,459 shares. The stock had previously closed at $41.48.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on DOCN. Stifel Nicolaus increased their price target on DigitalOcean from $35.00 to $40.00 and gave the company a "hold" rating in a research note on Wednesday, December 18th. Citigroup began coverage on shares of DigitalOcean in a research report on Friday, January 24th. They issued a "buy" rating and a $45.00 price objective on the stock. JMP Securities lifted their target price on shares of DigitalOcean from $47.00 to $55.00 and gave the stock a "market outperform" rating in a report on Monday, January 27th. Needham & Company LLC reissued a "hold" rating on shares of DigitalOcean in a report on Tuesday, November 5th. Finally, Barclays boosted their price objective on DigitalOcean from $38.00 to $48.00 and gave the stock an "overweight" rating in a report on Friday, October 11th. Six analysts have rated the stock with a hold rating and six have issued a buy rating to the company's stock. According to data from MarketBeat.com, DigitalOcean presently has an average rating of "Moderate Buy" and a consensus price target of $42.73.

DigitalOcean Stock Performance

The stock has a market cap of $4.05 billion, a price-to-earnings ratio of 51.68, a P/E/G ratio of 3.01 and a beta of 1.81. The stock has a fifty day simple moving average of $37.45 and a two-hundred day simple moving average of $37.83.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its earnings results on Monday, November 4th. The company reported $0.52 EPS for the quarter, topping 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 business had revenue of $198.50 million for the quarter, compared to the consensus estimate of $196.64 million. During the same period last year, the company earned $0.17 EPS. The firm's revenue was up 12.1% compared to the same quarter last year. Equities analysts expect that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current fiscal year.

Insider Transactions at DigitalOcean

In other news, insider Bratin Saha sold 16,989 shares of the stock in a transaction on Monday, November 18th. The shares were sold at an average price of $36.85, for a total transaction of $626,044.65. Following the completion of the sale, the insider now directly owns 390,296 shares in the company, valued at $14,382,407.60. This represents a 4.17 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Matt Steinfort sold 12,498 shares of the firm's stock in a transaction that occurred 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 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 position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 37,244 shares of company stock worth $1,416,208. Company insiders own 0.74% of the company's stock.

Institutional Trading of DigitalOcean

Several large investors have recently made changes to their positions in DOCN. Harbor Investment Advisory LLC raised its stake in DigitalOcean by 380.0% during the 4th quarter. Harbor Investment Advisory LLC now owns 720 shares of the company's stock worth $25,000 after buying an additional 570 shares during the period. Farther Finance Advisors LLC bought a new stake in shares of DigitalOcean during the third quarter valued at approximately $30,000. Advisors Asset Management Inc. raised its position in shares of DigitalOcean by 150.4% during the third quarter. Advisors Asset Management Inc. now owns 974 shares of the company's stock worth $39,000 after purchasing an additional 585 shares during the period. Blue Trust Inc. increased its stake in DigitalOcean by 380.6% during the 3rd quarter. Blue Trust Inc. now owns 1,211 shares of the company's stock valued at $49,000 after purchasing an additional 959 shares in the last quarter. Finally, JTC Employer Solutions Trustee Ltd acquired a new position in DigitalOcean during the fourth quarter worth $45,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean Company Profile

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).