Investors Purchase Large Volume of Call Options on DigitalOcean (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) was the target of some unusual options trading on Wednesday. Investors acquired 4,917 call options on the stock. Thisrepresentsanincreaseofapproximately36% compared to the average daily volume of 3,620 call options.

Insider Buying and Selling at DigitalOcean

In other news, insider Bratin Saha sold 3,461 shares of the stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the completion of the sale, the insider owned 294,546 shares in the company, valued at approximately $8,179,542.42. This represents a 1.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.74% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Institutional investors have recently made changes to their positions in the business. Viking Fund Management LLC bought a new position in DigitalOcean during the first quarter valued at about $2,170,000. Wesbanco Bank Inc. bought a new stake in shares of DigitalOcean during the first quarter valued at approximately $808,000. Concurrent Investment Advisors LLC bought a new stake in shares of DigitalOcean during the first quarter valued at approximately $265,000. Sumitomo Mitsui Trust Group Inc. increased its position in shares of DigitalOcean by 119.6% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 16,729 shares of the company's stock valued at $559,000 after purchasing an additional 9,110 shares during the period. Finally, Northern Trust Corp increased its position in shares of DigitalOcean by 14.8% during the fourth quarter. Northern Trust Corp now owns 725,960 shares of the company's stock valued at $24,733,000 after purchasing an additional 93,347 shares during the period. 49.77% of the stock is currently owned by institutional investors.

DigitalOcean Price Performance

Shares of DOCN stock traded down $1.31 during trading on Friday, reaching $33.02. The company had a trading volume of 2,592,369 shares, compared to its average volume of 2,506,635. The firm's 50 day simple moving average is $28.97 and its two-hundred day simple moving average is $32.89. DigitalOcean has a one year low of $25.45 and a one year high of $47.02. The company has a market capitalization of $3.01 billion, a PE ratio of 22.33, a PEG ratio of 2.36 and a beta of 1.75.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 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 company had revenue of $218.70 million for the quarter, compared to analyst estimates of $216.62 million. During the same quarter last year, the firm posted $0.48 earnings per share. The company's quarterly revenue was up 13.6% compared to the same quarter last year. Analysts forecast that DigitalOcean will post 1.01 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on DOCN. Canaccord Genuity Group increased their target price on DigitalOcean from $45.00 to $49.00 and gave the company a "buy" rating in a report on Wednesday. The Goldman Sachs Group cut their target price on shares of DigitalOcean from $46.00 to $41.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. Needham & Company LLC reiterated a "hold" rating on shares of DigitalOcean in a report on Tuesday, May 6th. Stifel Nicolaus set a $36.00 price objective on DigitalOcean in a report on Tuesday, August 5th. Finally, UBS Group cut their price target on DigitalOcean from $44.00 to $32.00 and set a "neutral" rating for the company in a research note on Thursday, May 8th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and seven have assigned a buy rating to the company's stock. According to MarketBeat.com, the company 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).