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

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

Institutional Inflows and Outflows

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

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Barclays raised their target price 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. JPMorgan Chase & Co. boosted their price objective on DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research report on Friday, October 25th. Stifel Nicolaus increased their target price on DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research report on Friday, August 9th. Piper Sandler reduced their price target on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating on the stock in a report on Monday, July 15th. Finally, Canaccord Genuity Group upped their price objective on DigitalOcean from $42.00 to $48.00 and gave the company a “buy” rating in a research note on Friday, October 4th. Five analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat, DigitalOcean has a consensus rating of “Moderate Buy” and an average price target of $40.56.

DigitalOcean Trading Down 3.3 %

NYSE DOCN traded down $1.37 during trading hours on Thursday, hitting $39.59. The company’s stock had a trading volume of 893,134 shares, compared to its average volume of 1,245,183. The company has a market capitalization of $3.64 billion, a PE ratio of 54.98, a price-to-earnings-growth ratio of 3.38 and a beta of 1.83. DigitalOcean has a 52 week low of $19.39 and a 52 week high of $44.80. The company’s 50-day simple moving average is $40.39 and its two-hundred day simple moving average is $36.55.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Thursday, August 8th. The company reported $0.48 earnings per share for the quarter, topping the consensus estimate 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 analysts’ expectations of $188.63 million. During the same quarter in the previous year, the firm earned $0.11 earnings per share. The business’s revenue was up 13.1% on a year-over-year basis. Research analysts anticipate that DigitalOcean will post 0.86 EPS for the current fiscal 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).