DigitalOcean Holdings, Inc. (NYSE:DOCN) Sees Large Increase in Short Interest

DigitalOcean Holdings, Inc. (NYSE:DOCN) was the target of a significant increase in short interest during the month of January. As of January 31st, there was short interest totalling 7,010,000 shares, an increase of 8.9% from the January 15th total of 6,440,000 shares. Currently, 11.3% of the company’s shares are sold short. Based on an average trading volume of 944,900 shares, the short-interest ratio is presently 7.4 days.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on DOCN. Stifel Nicolaus increased their target price on DigitalOcean from $35.00 to $40.00 and gave the stock a “hold” rating in a research note on Wednesday, December 18th. Citigroup began coverage on shares of DigitalOcean in a research note on Friday, January 24th. They issued a “buy” rating and a $45.00 target price for the company. JPMorgan Chase & Co. lifted their price target on DigitalOcean from $32.00 to $40.00 and gave the company a “neutral” rating in a research note on Friday, October 25th. Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Finally, JMP Securities raised their price objective on DigitalOcean from $47.00 to $55.00 and gave the company a “market outperform” rating in a report on Monday, January 27th. Six investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, DigitalOcean has a consensus rating of “Moderate Buy” and an average target price of $42.73.

Insider Activity at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 12,498 shares of the stock in a transaction on Wednesday, December 4th. The shares were sold at an average price of $40.00, for a total value of $499,920.00. Following the sale, the chief financial officer now directly owns 517,498 shares in the company, valued at approximately $20,699,920. This trade represents a 2.36 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Bratin Saha sold 4,289 shares of the business’s stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $36.80, for a total transaction of $157,835.20. Following the completion of the transaction, the insider now directly owns 372,762 shares of the company’s stock, valued at $13,717,641.60. This trade represents a 1.14 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 20,255 shares of company stock worth $790,163 over the last 90 days. Insiders own 0.74% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of DOCN. Hillsdale Investment Management Inc. grew its position in shares of DigitalOcean by 0.4% in the fourth quarter. Hillsdale Investment Management Inc. now owns 84,500 shares of the company’s stock valued at $2,879,000 after purchasing an additional 300 shares during the last quarter. Focus Partners Wealth grew its holdings in DigitalOcean by 2.8% in the 4th quarter. Focus Partners Wealth now owns 12,455 shares of the company’s stock valued at $424,000 after buying an additional 338 shares in the last quarter. Summit Investment Advisors Inc. lifted its holdings in shares of DigitalOcean by 6.8% during the fourth quarter. Summit Investment Advisors Inc. now owns 6,866 shares of the company’s stock worth $234,000 after buying an additional 436 shares in the last quarter. Nisa Investment Advisors LLC boosted its position in shares of DigitalOcean by 56.4% in the third quarter. Nisa Investment Advisors LLC now owns 1,340 shares of the company’s stock valued at $54,000 after acquiring an additional 483 shares during the period. Finally, Creative Financial Designs Inc. ADV grew its stake in shares of DigitalOcean by 17.8% in the third quarter. Creative Financial Designs Inc. ADV now owns 3,744 shares of the company’s stock valued at $151,000 after acquiring an additional 566 shares in the last quarter. 49.77% of the stock is owned by institutional investors.

DigitalOcean Price Performance

Shares of DOCN opened at $44.52 on Tuesday. The company’s 50-day moving average is $38.28 and its 200-day moving average is $38.55. The firm has a market capitalization of $4.11 billion, a PE ratio of 52.38, a PEG ratio of 3.19 and a beta of 1.81. DigitalOcean has a fifty-two week low of $26.63 and a fifty-two week high of $46.46.

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).