DigitalOcean Target of Unusually Large Options Trading (NYSE:DOCN)

DigitalOcean Holdings, Inc. (NYSE:DOCN) saw unusually large options trading on Wednesday. Stock traders bought 4,917 call options on the stock. Thisisanincreaseofapproximately36% compared to the average volume of 3,620 call options.

DigitalOcean Price Performance

DigitalOcean stock opened at $36.42 on Thursday. The stock’s 50 day moving average price is $28.75 and its 200 day moving average price is $32.97. The company has a market cap of $3.32 billion, a PE ratio of 28.01, a price-to-earnings-growth ratio of 2.55 and a beta of 1.75. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $47.02.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.12. The business had revenue of $218.70 million during the quarter, compared to the consensus estimate of $216.62 million. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The business’s revenue was up 13.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.48 EPS. On average, equities research analysts anticipate that DigitalOcean will post 1.01 EPS for the current fiscal year.

Analyst Ratings Changes

DOCN has been the topic of several research analyst reports. Stifel Nicolaus set a $36.00 price target on DigitalOcean in a research report on Tuesday. Citigroup cut their price target on DigitalOcean from $50.00 to $40.00 and set a “buy” rating on the stock in a research report on Wednesday, May 7th. Needham & Company LLC reissued a “hold” rating on shares of DigitalOcean in a report on Tuesday, May 6th. Wall Street Zen raised DigitalOcean from a “hold” rating to a “buy” rating in a report on Sunday, June 29th. Finally, The Goldman Sachs Group dropped their target price on DigitalOcean from $46.00 to $41.00 and set a “buy” rating on the stock in a report on Wednesday, May 7th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $41.45.

Insider Buying and Selling

In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of DigitalOcean stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the transaction, the insider owned 294,546 shares of the company’s stock, valued at $8,179,542.42. The trade was a 1.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.96% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

A number of large investors have recently made changes to their positions in the stock. CX Institutional raised its stake in shares of DigitalOcean by 780.5% during the 2nd quarter. CX Institutional now owns 1,039 shares of the company’s stock worth $30,000 after buying an additional 921 shares during the last quarter. GAMMA Investing LLC raised its stake in shares of DigitalOcean by 336.1% during the 1st quarter. GAMMA Investing LLC now owns 1,064 shares of the company’s stock worth $36,000 after buying an additional 820 shares during the last quarter. Farther Finance Advisors LLC raised its stake in shares of DigitalOcean by 135,100.0% during the 1st quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company’s stock worth $46,000 after buying an additional 1,351 shares during the last quarter. SVB Wealth LLC acquired a new position in shares of DigitalOcean during the 1st quarter worth $48,000. Finally, Advisors Asset Management Inc. raised its stake in shares of DigitalOcean by 39.6% during the 1st quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company’s stock worth $74,000 after buying an additional 632 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

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).