DigitalOcean Holdings, Inc. (NYSE:DOCN) Short Interest Up 18.4% in November

DigitalOcean Holdings, Inc. (NYSE:DOCN) was the target of a large growth in short interest during the month of November. As of November 15th, there was short interest totalling 6,500,000 shares, a growth of 18.4% from the October 31st total of 5,490,000 shares. Currently, 10.6% of the shares of the company are sold short. Based on an average trading volume of 1,160,000 shares, the days-to-cover ratio is currently 5.6 days.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research report on Tuesday, November 5th. Stifel Nicolaus boosted their price objective on DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a research report on Friday, August 9th. JPMorgan Chase & Co. increased their price target on DigitalOcean from $32.00 to $40.00 and gave the stock a “neutral” rating in a research note on Friday, October 25th. UBS Group reduced their price objective on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a report on Friday, August 9th. Finally, Barclays increased their price objective on shares of DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th. Five equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, DigitalOcean presently has an average rating of “Hold” and an average target price of $41.50.

DigitalOcean Stock Performance

Shares of DOCN stock traded down $0.90 during trading on Tuesday, hitting $38.36. 165,923 shares of the company were exchanged, compared to its average volume of 1,230,732. DigitalOcean has a twelve month low of $26.63 and a twelve month high of $44.80. The firm has a market capitalization of $3.54 billion, a price-to-earnings ratio of 46.18, a P/E/G ratio of 2.45 and a beta of 1.77. The business’s 50-day simple moving average is $40.23 and its 200 day simple moving average is $37.15.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Monday, November 4th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.12. The business had revenue of $198.50 million during the quarter, compared to analyst estimates of $196.64 million. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The firm’s revenue was up 12.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.17 EPS. On average, equities analysts forecast that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insider Activity

In other DigitalOcean news, insider Bratin Saha sold 16,989 shares of DigitalOcean stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $36.85, for a total value of $626,044.65. Following the completion of the transaction, the insider now directly owns 390,296 shares in the company, valued at $14,382,407.60. The trade was a 4.17 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.74% of the company’s stock.

Institutional Trading of DigitalOcean

Several large investors have recently made changes to their positions in the stock. Geode Capital Management LLC lifted its position in shares of DigitalOcean by 7.9% during the 3rd quarter. Geode Capital Management LLC now owns 1,464,333 shares of the company’s stock worth $59,156,000 after purchasing an additional 106,636 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its holdings in shares of DigitalOcean by 32.8% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,397,588 shares of the company’s stock worth $56,449,000 after buying an additional 345,119 shares in the last quarter. Principal Financial Group Inc. lifted its position in shares of DigitalOcean by 10.4% during the 3rd quarter. Principal Financial Group Inc. now owns 1,301,499 shares of the company’s stock worth $52,568,000 after buying an additional 122,651 shares during the period. Van Berkom & Associates Inc. grew its position in DigitalOcean by 1.6% in the second quarter. Van Berkom & Associates Inc. now owns 1,273,103 shares of the company’s stock valued at $44,240,000 after acquiring an additional 19,731 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of DigitalOcean by 23.4% during the second quarter. Dimensional Fund Advisors LP now owns 1,079,579 shares of the company’s stock valued at $37,512,000 after acquiring an additional 205,007 shares during the period. 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).