DigitalOcean (NYSE:DOCN) Trading 8.5% Higher - Here's What Happened

Key Points

• Shares jumped 8.5% Thursday to about $84.34, but trading volume was light at ~787,711 shares—roughly an 80% decline from the average session volume.
• Several analysts raised price targets and reiterated bullish ratings (e.g., Canaccord to $80, Citizens Jmp to $105, Goldman to $78); the stock's consensus is a "Moderate Buy" with a $76.08 target.
• Corporate insiders (CFO and CAO) sold shares in March—reducing their holdings—while institutional ownership is about 49.8% and several funds recently increased stakes.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) traded up 8.5% on Thursday . The company traded as high as $82.63 and last traded at $84.3360. 787,711 shares were traded during mid-day trading, a decline of 80% from the average session volume of 4,002,213 shares. The stock had previously closed at $77.71.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the company. Canaccord Genuity Group boosted their price target on DigitalOcean from $65.00 to $80.00 and gave the company a "buy" rating in a report on Friday, February 20th. Citigroup restated a "buy" rating on shares of DigitalOcean in a research note on Friday, February 13th. Citizens Jmp upped their price objective on DigitalOcean from $83.00 to $105.00 and gave the stock a "market outperform" rating in a research note on Thursday, March 26th. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. Finally, The Goldman Sachs Group upped their price objective on DigitalOcean from $50.00 to $78.00 and gave the stock a "buy" rating in a research note on Wednesday, February 25th. Nine research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $76.08.

DigitalOcean Price Performance

The firm has a market cap of $7.99 billion, a price-to-earnings ratio of 34.34 and a beta of 1.43. The company has a fifty day moving average price of $71.64 and a two-hundred day moving average price of $55.40.

Insider Buying and Selling at DigitalOcean

In other news, 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 sale, the chief financial officer directly owned 545,916 shares of the company's stock, valued at $30,243,746.40. This represents a 3.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Cherie Barrett sold 22,000 shares of the company's 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 directly owned 62,469 shares of the company's stock, valued at approximately $3,421,427.13. This represents a 26.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.96% of the company's stock.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently bought and sold shares of the business. Rockefeller Capital Management L.P. boosted its position in DigitalOcean by 309.2% during the 4th quarter. Rockefeller Capital Management L.P. now owns 4,669 shares of the company's stock worth $225,000 after acquiring an additional 3,528 shares during the period. Alpine Global Management LLC acquired a new stake in DigitalOcean during the 4th quarter worth about $577,000. Pacer Advisors Inc. boosted its position in DigitalOcean by 225.7% during the 4th quarter. Pacer Advisors Inc. now owns 16,426 shares of the company's stock worth $790,000 after acquiring an additional 11,382 shares during the period. Invesco Ltd. boosted its position in DigitalOcean by 12.3% during the 4th quarter. Invesco Ltd. now owns 288,571 shares of the company's stock worth $13,886,000 after acquiring an additional 31,618 shares during the period. Finally, Mercer Global Advisors Inc. ADV acquired a new stake in DigitalOcean during the 4th quarter worth about $400,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

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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