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

DigitalOcean Holdings, Inc. (NYSE:DOCN) was the target of a significant 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. Approximately 9.8% of the shares of the stock are short sold. Based on an average trading volume of 1,330,000 shares, the days-to-cover ratio is currently 4.4 days.

DigitalOcean Price Performance

DigitalOcean stock 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 52-week low of $20.21 and a 52-week high of $44.80. The firm’s 50 day moving average is $40.39 and its 200 day moving average is $36.55. The company has a market cap of $3.76 billion, a PE ratio of 54.98, a price-to-earnings-growth ratio of 3.25 and a beta of 1.83.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.39 by $0.09. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The business had revenue of $192.00 million during the quarter, compared to analysts’ expectations of $188.63 million. During the same period last year, the company posted $0.11 earnings per share. The firm’s quarterly revenue was up 13.1% compared to the same quarter last year. As a group, analysts forecast that DigitalOcean will post 0.86 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of DOCN. Allspring Global Investments Holdings LLC acquired a new position in DigitalOcean during the first quarter valued at approximately $2,045,000. Sumitomo Mitsui Trust Holdings Inc. bought a new position in DigitalOcean in the 1st quarter worth $291,000. Private Advisor Group LLC lifted its position in DigitalOcean by 637.6% during the 1st quarter. Private Advisor Group LLC now owns 48,378 shares of the company’s stock worth $1,847,000 after acquiring an additional 41,819 shares during the last quarter. FinTrust Capital Advisors LLC acquired a new stake in shares of DigitalOcean in the first quarter valued at about $36,000. Finally, Empowered Funds LLC grew its position in shares of DigitalOcean by 10.0% in the first quarter. Empowered Funds LLC now owns 7,852 shares of the company’s stock valued at $300,000 after purchasing an additional 711 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Canaccord Genuity Group increased their price target on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research note on Friday, October 4th. Piper Sandler lowered their target price on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a report on Monday, July 15th. UBS Group dropped their price target 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. Barclays lifted their price objective 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. Finally, JPMorgan Chase & Co. boosted their target price on shares of DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a report on Friday, October 25th. Five investment 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 stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $40.56.

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).