DigitalOcean (NYSE:DOCN) Sees Unusually-High Trading Volume – What’s Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN) saw an uptick in trading volume on Monday . 2,733,974 shares changed hands during mid-day trading, an increase of 134% from the previous session’s volume of 1,167,571 shares.The stock last traded at $37.19 and had previously closed at $39.30.

Analyst Upgrades and Downgrades

DOCN has been the subject of several recent analyst reports. Citigroup began coverage on shares of DigitalOcean in a research note on Friday, January 24th. They set a “buy” rating and a $45.00 price objective for the company. Stifel Nicolaus boosted their price target on shares of DigitalOcean from $35.00 to $40.00 and gave the company a “hold” rating in a research report on Wednesday, December 18th. JMP Securities increased their price objective on DigitalOcean from $47.00 to $55.00 and gave the stock a “market outperform” rating in a research report on Monday, January 27th. Morgan Stanley upgraded DigitalOcean from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $40.00 to $41.00 in a research report on Thursday, January 16th. Finally, Needham & Company LLC restated a “hold” rating on shares of DigitalOcean in a research note on Tuesday, November 5th. Six equities research analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $42.40.

DigitalOcean Trading Down 5.4 %

The stock has a market capitalization of $3.43 billion, a PE ratio of 43.74, a PEG ratio of 3.12 and a beta of 1.81. The business has a fifty day moving average price of $38.66 and a 200-day moving average price of $38.99.

Insider Buying and Selling

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

Hedge Funds Weigh In On DigitalOcean

A number of large investors have recently bought and sold shares of DOCN. Vanguard Group Inc. grew its holdings in shares of DigitalOcean by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 8,434,555 shares of the company’s stock worth $287,365,000 after purchasing an additional 117,133 shares during the last quarter. Jacobs Levy Equity Management Inc. grew its holdings in DigitalOcean by 16.6% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,628,995 shares of the company’s stock worth $55,500,000 after acquiring an additional 231,407 shares during the last quarter. Fuller & Thaler Asset Management Inc. increased its position in shares of DigitalOcean by 7.3% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 1,545,642 shares of the company’s stock valued at $52,660,000 after acquiring an additional 105,235 shares during the period. First Trust Advisors LP raised its stake in shares of DigitalOcean by 6.2% during the fourth quarter. First Trust Advisors LP now owns 1,533,699 shares of the company’s stock valued at $52,253,000 after acquiring an additional 89,349 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of DigitalOcean by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 1,473,421 shares of the company’s stock worth $50,211,000 after purchasing an additional 9,088 shares during the period. 49.77% of the stock is owned by hedge funds and other institutional investors.

About DigitalOcean

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).