DigitalOcean (NYSE:DOCN) Stock Price Down 4% - Here's What Happened

Key Points

• Shares fell about 4% intraday, trading as low as $74.41 and last at $76.67 on sharply reduced volume (~601,831 shares, down ~85% versus the ~3.96M daily average).
• Brokerages have been raising price targets and the stock carries a consensus "Moderate Buy" with an average target of $76.08; notable increases include Citizens Jmp to $105, Piper Sandler to $98 and Goldman Sachs to $78.
• Insiders sold shares in March (CAO and CFO dispositions), leaving insiders with 0.74% ownership while institutional investors hold roughly 49.77% of the stock.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report)'s share price was down 4% during mid-day trading on Tuesday . The company traded as low as $74.41 and last traded at $76.6650. Approximately 601,831 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 3,961,207 shares. The stock had previously closed at $79.87.

Analysts Set New Price Targets

A number of brokerages recently commented on DOCN. Citizens Jmp lifted their target price on shares of DigitalOcean from $83.00 to $105.00 and gave the stock a "market outperform" rating in a research report on Thursday, March 26th. The Goldman Sachs Group raised their price objective on DigitalOcean from $50.00 to $78.00 and gave the company a "buy" rating in a research note on Wednesday, February 25th. Piper Sandler lifted their price objective on DigitalOcean from $67.00 to $98.00 and gave the stock a "neutral" rating in a report on Tuesday, April 7th. Stifel Nicolaus set a $57.00 target price on DigitalOcean in a report on Tuesday, February 24th. Finally, Citigroup reaffirmed a "buy" rating on shares of DigitalOcean in a research note on Friday, February 13th. Nine equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, DigitalOcean currently has a consensus rating of "Moderate Buy" and an average target price of $76.08.

DigitalOcean Trading Down 6.9%

The business has a fifty day moving average of $70.92 and a 200-day moving average of $54.97. The company has a market cap of $6.84 billion, a PE ratio of 29.57 and a beta of 1.43.

Insider Activity at DigitalOcean

In related news, CAO Cherie Barrett sold 22,000 shares of DigitalOcean stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total value of $1,204,940.00. Following the sale, the chief accounting officer owned 62,469 shares in the company, valued at $3,421,427.13. The trade was a 26.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Matt Steinfort sold 20,000 shares of the company's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total transaction of $1,108,000.00. Following the completion of the transaction, the chief financial officer owned 545,916 shares of the company's stock, valued at $30,243,746.40. This trade represents a 3.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.74% of the stock is currently owned by insiders.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently modified their holdings of DOCN. Allworth Financial LP boosted its position in DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after acquiring an additional 255 shares in the last quarter. Huntington National Bank lifted its stake in shares of DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company's stock valued at $29,000 after purchasing an additional 517 shares during the period. NBC Securities Inc. bought a new stake in shares of DigitalOcean during the fourth quarter valued at approximately $32,000. Wilmington Savings Fund Society FSB bought a new stake in shares of DigitalOcean during the third quarter valued at approximately $37,000. Finally, Transamerica Financial Advisors LLC grew its stake in DigitalOcean by 417.9% in the fourth quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company's stock worth $38,000 after purchasing an additional 631 shares during the period. Hedge funds and other institutional investors own 49.77% of the company's stock.

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.

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