DigitalOcean (NYSE:DOCN) Shares Gap Down - Here's What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $40.83, but opened at $38.30. DigitalOcean shares last traded at $36.58, with a volume of 421,738 shares changing hands.

Wall Street Analyst Weigh In

DOCN has been the subject of several research analyst reports. JPMorgan Chase & Co. raised their target price on shares of DigitalOcean from $32.00 to $40.00 and gave the stock a "neutral" rating in a research report on Friday, October 25th. Barclays lifted their price objective on DigitalOcean from $38.00 to $48.00 and gave the company an "overweight" rating in a research report on Friday, October 11th. Stifel Nicolaus increased their target price on DigitalOcean from $32.00 to $35.00 and gave the stock a "hold" rating in a research report on Friday, August 9th. Piper Sandler dropped their price target on DigitalOcean from $38.00 to $34.00 and set a "neutral" rating on the stock in a research report on Monday, July 15th. Finally, Canaccord Genuity Group increased their price objective on DigitalOcean from $42.00 to $48.00 and gave the stock a "buy" rating in a report on Friday, October 4th. Five equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $40.56.

DigitalOcean Stock Down 13.5 %

The firm's fifty day moving average price is $40.45 and its two-hundred day moving average price is $36.64. The stock has a market capitalization of $3.25 billion, a PE ratio of 50.81, a PEG ratio of 3.14 and a beta of 1.83.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings data on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.39 by $0.09. The company had revenue of $192.00 million during the quarter, compared to analyst estimates of $188.63 million. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. DigitalOcean's revenue was up 13.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.11 earnings per share. As a group, analysts predict that DigitalOcean Holdings, Inc. will post 0.86 EPS for the current year.

Institutional Investors Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in DigitalOcean by 11.5% during the 1st 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 during the period. Principal Financial Group Inc. lifted its stake in shares of DigitalOcean by 10.4% during the 3rd quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company's stock valued at $52,568,000 after buying an additional 122,651 shares in the last quarter. Van Berkom & Associates Inc. boosted its holdings in DigitalOcean by 1.6% in the 2nd quarter. Van Berkom & Associates Inc. now owns 1,273,103 shares of the company's stock worth $44,240,000 after buying an additional 19,731 shares during the period. Dimensional Fund Advisors LP increased its stake in DigitalOcean by 23.4% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company's stock worth $37,512,000 after buying an additional 205,007 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. raised its holdings in DigitalOcean by 8.0% during the first quarter. Jacobs Levy Equity Management Inc. now owns 864,514 shares of the company's stock valued at $33,007,000 after acquiring an additional 63,771 shares during the period. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

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).