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

DigitalOcean Holdings, Inc. (NYSE:DOCN) was the target of unusually large options trading on Monday. Stock investors purchased 10,318 call options on the company. This represents an increase of approximately 109% compared to the average daily volume of 4,944 call options.

DigitalOcean Trading Down 0.5%

Shares of NYSE DOCN opened at $49.28 on Tuesday. DigitalOcean has a 12-month low of $25.45 and a 12-month high of $52.20. The firm’s 50-day moving average price is $45.29 and its 200-day moving average price is $36.91. The stock has a market capitalization of $4.51 billion, a price-to-earnings ratio of 19.87, a P/E/G ratio of 6.22 and a beta of 1.77.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, topping the consensus estimate of $0.31 by $0.23. The company had revenue of $229.63 million during the quarter, compared to analyst estimates of $226.55 million. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The firm’s revenue was up 15.9% on a year-over-year basis. During the same quarter last year, the business posted $0.52 earnings per share. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS and its FY 2025 guidance at 2.000-2.050 EPS. On average, equities analysts predict that DigitalOcean will post 1.01 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Norges Bank purchased a new position in shares of DigitalOcean during the second quarter worth approximately $22,633,000. Alyeska Investment Group L.P. purchased a new stake in shares of DigitalOcean in the 3rd quarter worth $21,808,000. Vanguard Group Inc. grew its position in shares of DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after buying an additional 442,617 shares in the last quarter. Danske Bank A S purchased a new position in shares of DigitalOcean during the third quarter valued at $14,582,000. Finally, Lazard Asset Management LLC increased its stake in shares of DigitalOcean by 34.5% during the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after buying an additional 426,264 shares during the period. 49.77% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 22nd. Wall Street Zen raised shares of DigitalOcean from a “hold” rating to a “buy” rating in a report on Saturday. Cantor Fitzgerald set a $47.00 target price on shares of DigitalOcean and gave the company a “neutral” rating in a research note on Thursday, November 6th. UBS Group boosted their price target on shares of DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a research note on Thursday, November 6th. Finally, Canaccord Genuity Group lifted their target price on DigitalOcean from $55.00 to $60.00 and gave the stock a “buy” rating in a report on Thursday, November 6th. Eight investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $48.75.

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.