DigitalOcean Holdings, Inc. (NYSE:DOCN) Sees Large Decrease in Short Interest

DigitalOcean Holdings, Inc. (NYSE:DOCN) saw a large decrease in short interest during the month of October. As of October 15th, there was short interest totalling 5,800,000 shares, a decrease of 7.6% from the September 30th total of 6,280,000 shares. Based on an average daily volume of 1,330,000 shares, the short-interest ratio is presently 4.4 days. Approximately 9.8% of the company’s shares are short sold.

DigitalOcean Price Performance

Shares of DOCN stock traded down $1.37 during midday trading on Thursday, reaching $39.59. 893,134 shares of the company traded hands, compared to its average volume of 1,245,183. The firm has a market cap of $3.64 billion, a PE ratio of 54.98, a price-to-earnings-growth ratio of 3.38 and a beta of 1.83. The firm’s 50 day simple moving average is $40.39 and its two-hundred day simple moving average is $36.55. DigitalOcean has a 1-year low of $19.39 and a 1-year high of $44.80.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, beating the consensus estimate of $0.39 by $0.09. The business had revenue of $192.00 million for the quarter, compared to analyst estimates of $188.63 million. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The company’s quarterly revenue was up 13.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.11 earnings per share. As a group, research analysts anticipate that DigitalOcean will post 0.86 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. UBS Group reduced their target price on DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research note on Friday, August 9th. Stifel Nicolaus boosted their price objective on shares of DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research report on Friday, August 9th. Barclays raised their target price on shares of DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research report on Friday, October 11th. JPMorgan Chase & Co. raised 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. Finally, 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. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $40.56.

Institutional Investors Weigh In On DigitalOcean

A number of large investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in shares of DigitalOcean by 11.5% in 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 in the last quarter. University of Texas Texas AM Investment Management Co. bought a new stake in DigitalOcean during the second quarter valued at $11,712,000. Bank of New York Mellon Corp lifted its position in shares of DigitalOcean by 66.9% in the 2nd quarter. Bank of New York Mellon Corp now owns 766,043 shares of the company’s stock worth $26,620,000 after buying an additional 307,162 shares during the last quarter. Principal Financial Group Inc. grew its position in shares of DigitalOcean by 27.9% during the 2nd quarter. Principal Financial Group Inc. now owns 1,178,848 shares of the company’s stock valued at $40,965,000 after buying an additional 257,229 shares during the last quarter. Finally, Renaissance Technologies LLC raised its stake in DigitalOcean by 152.6% during the second quarter. Renaissance Technologies LLC now owns 375,600 shares of the company’s stock worth $13,052,000 after acquiring an additional 226,900 shares during the period. Institutional investors and hedge funds own 49.77% of the company’s stock.

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).