DigitalOcean (NYSE:DOCN) Trading Down 5.1% – Time to Sell?

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

Analyst Ratings Changes

Several brokerages have commented on DOCN. JPMorgan Chase & Co. raised their price objective on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Stifel Nicolaus boosted their price objective on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. JMP Securities lifted their target price on shares of DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a report on Monday, January 27th. Finally, Barclays raised their target price on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th. Six analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $42.73.

DigitalOcean Price Performance

The firm has a market cap of $3.96 billion, a price-to-earnings ratio of 50.54, a price-to-earnings-growth ratio of 3.01 and a beta of 1.81. The company has a fifty day moving average price of $37.23 and a two-hundred day moving average price of $37.75.

DigitalOcean (NYSE:DOCN) last released its earnings results on Monday, November 4th. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.40 by $0.12. The company had revenue of $198.50 million for the quarter, compared to analysts’ expectations of $196.64 million. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The business’s revenue for the quarter was up 12.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.17 EPS. On average, research analysts expect that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In related news, insider Bratin Saha sold 3,468 shares of DigitalOcean stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $38.18, for a total transaction of $132,408.24. Following the completion of the sale, the insider now directly owns 379,795 shares of the company’s stock, valued at $14,500,573.10. The trade was a 0.90 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Matt Steinfort sold 12,498 shares of DigitalOcean 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 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 over the last three months. Corporate insiders own 0.74% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds have recently made changes to their positions in the business. Harbor Investment Advisory LLC raised its stake in shares of 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 purchasing an additional 570 shares in the last quarter. Farther Finance Advisors LLC acquired a new stake in DigitalOcean in the third quarter valued at $30,000. Advisors Asset Management Inc. increased 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 purchasing an additional 585 shares during the last quarter. Blue Trust Inc. raised its holdings in shares of 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 during the period. Finally, JTC Employer Solutions Trustee Ltd acquired a new stake in DigitalOcean in the 4th quarter valued at about $45,000. 49.77% of the stock is owned by 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).