Short Interest in DigitalOcean Holdings, Inc. (NYSE:DOCN) Drops By 5.3%

DigitalOcean Holdings, Inc. (NYSE:DOCN) was the recipient of a significant decline in short interest during the month of 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 company’s stock are sold short. Based on an average trading volume of 1,240,000 shares, the days-to-cover ratio is presently 4.4 days.

DigitalOcean Trading Down 3.9 %

DOCN opened at $36.85 on Monday. The business has a 50 day moving average of $40.67 and a 200-day moving average of $36.97. The stock has a market capitalization of $3.40 billion, a price-to-earnings ratio of 43.35, a P/E/G ratio of 2.37 and a beta of 1.83. DigitalOcean has a 1-year low of $26.10 and a 1-year high of $44.80.

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

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on DOCN shares. Stifel Nicolaus raised their price target on shares of DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a report on Friday, August 9th. JPMorgan Chase & Co. boosted their price target on DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday, October 25th. Barclays raised their price objective on DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a research note on Friday, October 11th. UBS Group decreased their target price on DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a research report on Friday, August 9th. Finally, Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Five investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, DigitalOcean currently has a consensus rating of “Hold” and a consensus price target of $41.50.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors and hedge funds have recently added to or reduced their stakes in DOCN. Point72 Hong Kong Ltd acquired a new stake in shares of DigitalOcean during the 2nd quarter worth approximately $877,000. Versor Investments LP bought a new position in DigitalOcean in the third quarter worth $751,000. Public Sector Pension Investment Board acquired a new stake in DigitalOcean during the second quarter worth $4,108,000. University of Texas Texas AM Investment Management Co. bought a new stake in DigitalOcean in the 2nd quarter valued at $11,712,000. Finally, Vanguard Group Inc. raised its stake 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 valued at $256,897,000 after buying an additional 696,426 shares in the last quarter. 49.77% of the stock is currently owned by institutional investors.

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).