DigitalOcean (NYSE:DOCN) Shares Gap Down – Time to Sell?

DigitalOcean Holdings, Inc. (NYSE:DOCN) gapped down prior to trading on Wednesday . The stock had previously closed at $84.92, but opened at $78.80. DigitalOcean shares last traded at $86.8890, with a volume of 6,384,351 shares trading hands.

Wall Street Analysts Forecast Growth

DOCN has been the subject of a number of recent research reports. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Oppenheimer raised their price target on DigitalOcean from $85.00 to $100.00 and gave the stock an “outperform” rating in a report on Wednesday, March 18th. Wall Street Zen lowered DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Citigroup reissued a “buy” rating on shares of DigitalOcean in a report on Friday, February 13th. Finally, Royal Bank Of Canada set a $60.00 target price on DigitalOcean in a report on Tuesday, February 24th. Nine equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus target price of $70.38.

DigitalOcean Stock Performance

The stock has a market capitalization of $7.90 billion, a PE ratio of 33.96, a price-to-earnings-growth ratio of 83.60 and a beta of 1.76. The business’s 50-day moving average price is $62.52 and its 200 day moving average price is $50.13.

Insider Activity

In other DigitalOcean news, CFO Matt Steinfort sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the sale, the chief financial officer owned 545,916 shares of the company’s stock, valued at $30,243,746.40. This trade represents a 3.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Cherie Barrett sold 22,000 shares of the business’s stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $54.77, for a total value of $1,204,940.00. Following the transaction, the chief accounting officer directly owned 62,469 shares of the company’s stock, valued at $3,421,427.13. The trade was a 26.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.74% of the company’s stock.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Allworth Financial LP lifted its holdings in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after acquiring an additional 255 shares during the last quarter. Huntington National Bank grew its position in DigitalOcean by 638.3% during the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after acquiring an additional 517 shares during the last quarter. NBC Securities Inc. purchased a new position in shares of DigitalOcean during the fourth quarter worth approximately $32,000. Wilmington Savings Fund Society FSB bought a new stake in shares of DigitalOcean in the 3rd quarter worth approximately $37,000. Finally, Transamerica Financial Advisors LLC boosted its stake in shares of DigitalOcean by 417.9% in the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock valued at $38,000 after purchasing an additional 631 shares in the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.