DigitalOcean Sees Unusually Large Options Volume (NYSE:DOCN)

Key Points

• DigitalOcean experienced a notable increase in call options trading, with 4,917 options purchased, marking a 36% rise compared to typical volumes.
• Analysts are optimistic about DigitalOcean, with multiple firms adjusting their price targets, including Barclays raising theirs from $38 to $40, while Morgan Stanley lowered theirs from $52 to $41.
• Insider trading was reported with Bratin Saha selling 3,461 shares at an average price of $27.77, reducing their stake in the company by 1.16%.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) saw unusually large options trading on Wednesday. Investors acquired 4,917 call options on the company. Thisrepresentsanincreaseofapproximately36% compared to the typical daily volume of 3,620 call options.

DigitalOcean Stock Down 5.2%

DigitalOcean stock traded down $1.80 during trading hours on Friday, hitting $32.53. The stock had a trading volume of 579,987 shares, compared to its average volume of 1,564,223. The stock has a market cap of $2.96 billion, a price-to-earnings ratio of 25.00, a P/E/G ratio of 2.67 and a beta of 1.75. The business's 50 day simple moving average is $28.87 and its 200-day simple moving average is $32.95. DigitalOcean has a one year low of $25.45 and a one year high of $47.02.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.47 by $0.12. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The business had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. During the same quarter last year, the business earned $0.48 EPS. The firm's quarterly revenue was up 13.6% on a year-over-year basis. Research analysts anticipate that DigitalOcean will post 1.01 EPS for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of the company's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total value of $96,111.97. Following the transaction, the insider directly owned 294,546 shares of the company's stock, valued at $8,179,542.42. This represents a 1.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 0.96% of the company's stock.

Institutional Investors Weigh In On DigitalOcean

Institutional investors have recently made changes to their positions in the stock. CX Institutional boosted its position in shares of DigitalOcean by 780.5% during the 2nd quarter. CX Institutional now owns 1,039 shares of the company's stock valued at $30,000 after purchasing an additional 921 shares in the last quarter. GAMMA Investing LLC lifted its stake in DigitalOcean by 336.1% in the first quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock valued at $36,000 after buying an additional 820 shares during the period. Farther Finance Advisors LLC boosted its holdings in shares of 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 bought a new position in DigitalOcean during the first quarter worth $48,000. Finally, Advisors Asset Management Inc. boosted its stake in DigitalOcean by 39.6% during the first quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company's stock worth $74,000 after acquiring an additional 632 shares in the last quarter. Institutional investors own 49.77% of the company's stock.

Analyst Upgrades and Downgrades

DOCN has been the topic of several analyst reports. Barclays increased their target price on DigitalOcean from $38.00 to $40.00 and gave the stock an "overweight" rating in a report on Wednesday. Stifel Nicolaus set a $36.00 target price on shares of DigitalOcean in a research report on Tuesday. Morgan Stanley increased their price target on shares of DigitalOcean from $41.00 to $44.00 and gave the stock an "overweight" rating in a research report on Wednesday. Wall Street Zen raised DigitalOcean from a "hold" rating to a "buy" rating in a report on Sunday, June 29th. Finally, UBS Group decreased their price target on DigitalOcean from $44.00 to $32.00 and set a "neutral" rating on the stock in a research note on Thursday, May 8th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have assigned a buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $41.45.

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).