DigitalOcean (NYSE:DOCN) Shares Gap Up - What's Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) gapped up prior to trading on Friday . The stock had previously closed at $38.73, but opened at $40.00. DigitalOcean shares last traded at $39.81, with a volume of 190,459 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on DOCN shares. JPMorgan Chase & Co. lifted their price objective on DigitalOcean from $32.00 to $40.00 and gave the stock a "neutral" rating in a report on Friday, October 25th. Canaccord Genuity Group raised their target price on DigitalOcean from $42.00 to $48.00 and gave the stock a "buy" rating in a research report on Friday, October 4th. Needham & Company LLC reissued a "hold" rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Morgan Stanley raised DigitalOcean from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $40.00 to $41.00 in a research report on Thursday, January 16th. Finally, Cantor Fitzgerald assumed coverage on DigitalOcean in a report on Friday, January 17th. They issued a "neutral" rating and a $39.00 price target on the stock. Six analysts have rated the stock with a hold rating and six have assigned a buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $42.00.

DigitalOcean Trading Up 3.6 %

The stock has a market cap of $3.70 billion, a PE ratio of 47.22, a P/E/G ratio of 2.77 and a beta of 1.78. The company has a fifty day moving average of $36.84 and a 200-day moving average of $37.30.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings data on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.12. The firm had revenue of $198.50 million for the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.17 EPS. As a group, research analysts anticipate that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction dated Wednesday, December 4th. The stock was sold at an average price of $40.00, for a total value of $499,920.00. Following the transaction, the chief financial officer now owns 517,498 shares in the company, valued at approximately $20,699,920. This represents a 2.36 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Bratin Saha sold 16,989 shares of the company'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 directly owns 390,296 shares of the company's stock, valued at approximately $14,382,407.60. This trade represents a 4.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 37,244 shares of company stock worth $1,416,208 in the last quarter. 0.74% of the stock is owned by company insiders.

Institutional Trading of DigitalOcean

A number of hedge funds have recently added to or reduced their stakes in DOCN. Harbor Investment Advisory LLC lifted its position 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 acquiring an additional 570 shares during the period. Farther Finance Advisors LLC purchased a new position in shares of DigitalOcean during the 3rd quarter worth approximately $30,000. Advisors Asset Management Inc. raised its stake in shares of 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 buying an additional 585 shares in the last quarter. JTC Employer Solutions Trustee Ltd purchased a new position in DigitalOcean in the 4th quarter valued at approximately $45,000. Finally, Blue Trust Inc. increased its stake in DigitalOcean by 380.6% in 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. 49.77% of the stock is owned by institutional investors and hedge funds.

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).