DigitalOcean (NYSE:DOCN) Shares Gap Down – What’s Next?

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) gapped down prior to trading on Monday . The stock had previously closed at $40.83, but opened at $38.30. DigitalOcean shares last traded at $36.58, with a volume of 421,738 shares.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on DOCN. Barclays upped 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. JPMorgan Chase & Co. lifted their price target on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a report on Friday, October 25th. Canaccord Genuity Group increased their price objective on DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, October 4th. 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. Finally, UBS Group lowered 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. Five equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $40.56.

DigitalOcean Stock Down 10.0 %

The firm has a market cap of $3.38 billion, a P/E ratio of 50.81, a P/E/G ratio of 3.14 and a beta of 1.83. The business has a fifty day moving average of $40.45 and a 200 day moving average of $36.64.

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

Institutional Investors Weigh In On DigitalOcean

A number of large investors have recently added to or reduced their stakes in the business. Point72 Hong Kong Ltd acquired a new position in shares of DigitalOcean in the second quarter valued at about $877,000. Private Advisor Group LLC grew its position in shares of DigitalOcean by 637.6% in the 1st quarter. Private Advisor Group LLC now owns 48,378 shares of the company’s stock valued at $1,847,000 after buying an additional 41,819 shares during the last quarter. Public Sector Pension Investment Board bought a new stake in DigitalOcean in the second quarter worth approximately $4,108,000. University of Texas Texas AM Investment Management Co. bought a new position in shares of DigitalOcean during the 2nd quarter worth about $11,712,000. Finally, Vanguard Group Inc. grew its stake in DigitalOcean by 11.5% in the first quarter. Vanguard Group Inc. now owns 6,728,563 shares of the company’s stock valued at $256,897,000 after acquiring an additional 696,426 shares during the period. Institutional investors 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).