DigitalOcean (NYSE:DOCN) Shares Gap Down – Time to Sell?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $127.17, but opened at $119.80. DigitalOcean shares last traded at $132.1080, with a volume of 1,634,190 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on DOCN shares. Barclays dropped their target price on DigitalOcean from $184.00 to $160.00 and set an “overweight” rating for the company in a research report on Tuesday, July 21st. Piper Sandler raised their price objective on shares of DigitalOcean from $98.00 to $155.00 and gave the company a “neutral” rating in a research note on Tuesday, May 5th. Weiss Ratings cut shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday, July 28th. The Goldman Sachs Group raised their price target on DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Finally, Bank of America increased their target price on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $151.93.

DigitalOcean Stock Up 0.2%

The firm’s fifty day moving average price is $146.62 and its 200-day moving average price is $106.94. The company has a market cap of $13.29 billion, a price-to-earnings ratio of 55.33 and a beta of 1.61. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The business had revenue of $257.90 million for the quarter, compared to analyst estimates of $249.76 million. During the same period last year, the business posted $0.56 earnings per share. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. Sell-side analysts predict that DigitalOcean Holdings, Inc. will post 0.57 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the sale, the director directly owned 24,323 shares of the company’s stock, valued at $3,803,630.74. The trade was a 15.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total value of $1,700,700.00. Following the sale, the chief financial officer owned 538,414 shares in the company, valued at $91,568,068.98. The trade was a 1.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 39,338 shares of company stock worth $6,191,576 over the last quarter. Company insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds have recently bought and sold shares of DOCN. State of New Jersey Common Pension Fund D bought a new position in DigitalOcean in the 4th quarter valued at approximately $2,358,000. New York State Teachers Retirement System lifted its stake in shares of DigitalOcean by 33.0% in the fourth quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock worth $2,373,000 after acquiring an additional 12,229 shares during the period. Legato Capital Management LLC acquired a new stake in shares of DigitalOcean during the fourth quarter worth $1,365,000. Campbell Newman Asset Management Inc. acquired a new stake in DigitalOcean during the fourth quarter worth approximately $2,101,000. Finally, Fortis Capital Advisors LLC bought a new stake in DigitalOcean in the fourth quarter worth approximately $1,020,000. 49.77% of the stock is owned by institutional investors.

About DigitalOcean

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.