DigitalOcean (NYSE:DOCN) Shares Gap Down - Should You Sell?

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report)'s share price gapped down prior to trading on Thursday . The stock had previously closed at $29.87, but opened at $28.72. DigitalOcean shares last traded at $28.58, with a volume of 500,258 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the company. Canaccord Genuity Group lowered their price objective on DigitalOcean from $50.00 to $45.00 and set a "buy" rating for the company in a research report on Monday, April 7th. The Goldman Sachs Group lowered their price objective on DigitalOcean from $46.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. Bank of America raised their price objective on DigitalOcean from $28.00 to $31.00 and gave the stock an "underperform" rating in a research report on Wednesday, February 26th. Citigroup lowered their price target on DigitalOcean from $50.00 to $40.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. Finally, Barclays lowered their price target on DigitalOcean from $48.00 to $38.00 and set an "overweight" rating for the company in a research report on Monday, April 21st. One equities research analyst has rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $39.83.

DigitalOcean Trading Up 3.2%

The firm has a market cap of $2.61 billion, a price-to-earnings ratio of 33.72, a PEG ratio of 3.12 and a beta of 1.78. The company has a fifty day moving average price of $29.44 and a 200-day moving average price of $35.38.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings results on Tuesday, May 6th. The company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.11. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The firm had revenue of $210.70 million during the quarter, compared to analyst estimates of $208.63 million. During the same quarter in the previous year, the business earned $0.43 EPS. DigitalOcean's revenue for the quarter was up 14.1% compared to the same quarter last year. As a group, research analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current fiscal year.

Insider Activity at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 3,948 shares of the business's stock in a transaction that occurred on Tuesday, March 18th. The stock was sold at an average price of $36.63, for a total transaction of $144,615.24. Following the completion of the sale, the insider now directly owns 358,696 shares in the company, valued at approximately $13,139,034.48. The trade was a 1.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.96% of the stock is owned by company insiders.

Institutional Investors Weigh In On DigitalOcean

Several large investors have recently bought and sold shares of DOCN. GAMMA Investing LLC increased its stake in 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 in the last quarter. Farther Finance Advisors LLC increased its stake in 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 in the last quarter. SVB Wealth LLC acquired a new position in shares of DigitalOcean during the 1st quarter worth approximately $48,000. SBI Securities Co. Ltd. acquired a new position in shares of DigitalOcean during the 4th quarter worth approximately $66,000. Finally, Advisors Asset Management Inc. boosted its holdings 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 purchasing an additional 632 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

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).