DigitalOcean Holdings, Inc. (NYSE:DOCN) Short Interest Update

DigitalOcean Holdings, Inc. (NYSE:DOCN) was the recipient of a significant decline in short interest in October. As of October 31st, there was short interest totalling 5,490,000 shares, a decline of 5.3% from the October 15th total of 5,800,000 shares. Currently, 9.2% of the shares of the stock are sold short. Based on an average daily volume of 1,240,000 shares, the short-interest ratio is presently 4.4 days.

DigitalOcean Price Performance

DOCN stock opened at $36.85 on Monday. The company’s 50 day simple moving average is $40.67 and its 200-day simple moving average is $36.97. DigitalOcean has a 52-week low of $26.10 and a 52-week high of $44.80. The firm has a market capitalization of $3.40 billion, a P/E ratio of 43.35, a P/E/G ratio of 2.37 and a beta of 1.83.

DigitalOcean (NYSE:DOCN) last released its earnings results on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.40 by $0.12. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The company had revenue of $198.50 million during the quarter, compared to analyst estimates of $196.64 million. During the same quarter in the prior year, the company earned $0.17 earnings per share. The company’s revenue for the quarter was up 12.1% on a year-over-year basis. Sell-side analysts predict that DigitalOcean will post 1.01 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages have issued reports on DOCN. Stifel Nicolaus increased their price target on DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research note on Friday, August 9th. Needham & Company LLC reaffirmed a “hold” rating on shares of DigitalOcean in a report on Tuesday, November 5th. JPMorgan Chase & Co. upped their price target on shares of DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Barclays raised their price objective on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research report on Friday, October 11th. Finally, UBS Group dropped their target price on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a report on Friday, August 9th. Five analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $41.50.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently bought and sold shares of DOCN. Vanguard Group Inc. lifted its position in shares of DigitalOcean by 11.5% in the first quarter. Vanguard Group Inc. now owns 6,728,563 shares of the company’s stock worth $256,897,000 after purchasing an additional 696,426 shares in the last quarter. Geode Capital Management LLC lifted its position in DigitalOcean by 7.9% in the 3rd quarter. Geode Capital Management LLC now owns 1,464,333 shares of the company’s stock worth $59,156,000 after buying an additional 106,636 shares in the last quarter. Jacobs Levy Equity Management Inc. boosted its stake in shares of DigitalOcean by 32.8% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company’s stock valued at $56,449,000 after buying an additional 345,119 shares during the period. Principal Financial Group Inc. grew its holdings 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 acquiring an additional 122,651 shares in the last quarter. Finally, Van Berkom & Associates Inc. increased its stake in shares of DigitalOcean by 1.6% in the second quarter. Van Berkom & Associates Inc. now owns 1,273,103 shares of the company’s stock worth $44,240,000 after acquiring an additional 19,731 shares during the last quarter. 49.77% of the stock is currently 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).