Short Interest in DigitalOcean Holdings, Inc. (NYSE:DOCN) Drops By 7.6%

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

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. JPMorgan Chase & Co. boosted their price objective on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research report on Friday, October 25th. Piper Sandler dropped their price objective on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a research note on Monday, July 15th. UBS Group decreased their target price on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research report on Friday, August 9th. Stifel Nicolaus increased their price target on shares of DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a research report on Friday, August 9th. Finally, Barclays raised their price target on shares of DigitalOcean from $38.00 to $48.00 and gave the stock an “overweight” rating in a research note on Friday, October 11th. Five investment analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $40.56.

Hedge Funds Weigh In On DigitalOcean

Institutional investors have recently modified their holdings of the stock. Farther Finance Advisors LLC acquired a new position in DigitalOcean during the third quarter valued at approximately $30,000. FinTrust Capital Advisors LLC bought a new stake in shares of DigitalOcean in the 1st quarter valued at $36,000. Blue Trust Inc. raised its stake in DigitalOcean by 380.6% during the 3rd quarter. Blue Trust Inc. now owns 1,211 shares of the company’s stock worth $49,000 after buying an additional 959 shares during the period. Nisa Investment Advisors LLC lifted its holdings in DigitalOcean by 56.4% during the third quarter. Nisa Investment Advisors LLC now owns 1,340 shares of the company’s stock worth $54,000 after acquiring an additional 483 shares in the last quarter. Finally, Covestor Ltd grew its stake in DigitalOcean by 571.4% in the first quarter. Covestor Ltd now owns 1,947 shares of the company’s stock valued at $74,000 after acquiring an additional 1,657 shares during the period. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean Price Performance

Shares of NYSE DOCN traded up $1.25 during mid-day trading on Friday, hitting $40.83. The company’s stock had a trading volume of 1,457,762 shares, compared to its average volume of 1,246,186. DigitalOcean has a one year low of $20.21 and a one year high of $44.80. The company’s fifty day simple moving average is $40.39 and its 200-day simple moving average is $36.55. The stock has a market cap of $3.76 billion, a price-to-earnings ratio of 54.98, a price-to-earnings-growth ratio of 3.25 and a beta of 1.83.

DigitalOcean (NYSE:DOCN) last released its earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping analysts’ consensus estimates of $0.39 by $0.09. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The firm had revenue of $192.00 million during the quarter, compared to analyst estimates of $188.63 million. During the same quarter in the previous year, the business earned $0.11 EPS. The business’s quarterly revenue was up 13.1% compared to the same quarter last year. On average, sell-side analysts predict that DigitalOcean will post 0.86 EPS for the current year.

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).