DigitalOcean (NYSE:DOCN) Shares Gap Down - Here's What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) 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 trading hands.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. UBS Group cut their target price on shares of DigitalOcean from $44.00 to $32.00 and set a "neutral" rating for the company in a research report on Thursday, May 8th. Canaccord Genuity Group cut 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. JPMorgan Chase & Co. increased their target price on DigitalOcean from $40.00 to $45.00 and gave the company a "neutral" rating in a report on Wednesday, February 26th. Barclays dropped 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. Finally, Stifel Nicolaus reduced their price objective on DigitalOcean from $40.00 to $33.00 and set a "hold" rating on the stock in a research report on Monday, April 7th. One analyst has rated the stock with a sell rating, six have issued a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $39.83.

DigitalOcean Price Performance

The stock has a market cap of $2.61 billion, a price-to-earnings ratio of 33.72, a price-to-earnings-growth ratio of 3.12 and a beta of 1.78. The firm's 50-day moving average is $29.34 and its 200 day moving average is $35.30.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings data on Tuesday, May 6th. The company reported $0.56 EPS for the quarter, topping analysts' consensus estimates of $0.45 by $0.11. The business had revenue of $210.70 million during the quarter, compared to the consensus estimate of $208.63 million. DigitalOcean had a negative return on equity of 43.11% and a net margin of 10.86%. The business's revenue for the quarter was up 14.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.43 EPS. On average, sell-side analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current year.

Insider Activity

In related news, insider Bratin Saha sold 3,461 shares of the stock in a transaction that occurred on Monday, April 21st. The shares were sold at an average price of $26.86, for a total transaction of $92,962.46. Following the completion of the sale, the insider now owns 394,367 shares of the company's stock, valued at approximately $10,592,697.62. This represents a 0.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.96% of the company's stock.

Institutional Investors Weigh In On DigitalOcean

Several large investors have recently made changes to their positions in DOCN. Vanguard Group Inc. boosted its position in DigitalOcean by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 8,434,555 shares of the company's stock worth $287,365,000 after purchasing an additional 117,133 shares during the period. Fuller & Thaler Asset Management Inc. boosted its position in shares of DigitalOcean by 28.6% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 1,987,177 shares of the company's stock worth $66,352,000 after buying an additional 441,535 shares during the period. Jacobs Levy Equity Management Inc. grew its stake in shares of DigitalOcean by 16.6% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company's stock valued at $55,500,000 after buying an additional 231,407 shares in the last quarter. First Trust Advisors LP grew its stake in shares of DigitalOcean by 6.2% in the fourth quarter. First Trust Advisors LP now owns 1,533,699 shares of the company's stock valued at $52,253,000 after buying an additional 89,349 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of DigitalOcean by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 1,473,421 shares of the company's stock valued at $50,211,000 after buying an additional 9,088 shares during the period. Institutional investors and hedge funds 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).