Traders Purchase High Volume of DigitalOcean Call Options (NYSE:DOCN)

DigitalOcean Holdings, Inc. (NYSE:DOCN) was the target of unusually large options trading on Monday. Stock investors purchased 10,318 call options on the stock. This is an increase of approximately 109% compared to the average daily volume of 4,944 call options.

DigitalOcean Price Performance

NYSE:DOCN traded down $0.24 during mid-day trading on Monday, reaching $49.28. 1,493,589 shares of the company’s stock traded hands, compared to its average volume of 2,005,802. The firm has a market capitalization of $4.51 billion, a price-to-earnings ratio of 19.87, a PEG ratio of 6.22 and a beta of 1.77. DigitalOcean has a 12-month low of $25.45 and a 12-month high of $52.20. The company has a 50 day moving average price of $45.12 and a 200-day moving average price of $36.77.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, beating analysts’ consensus estimates of $0.31 by $0.23. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The company had revenue of $229.63 million during the quarter, compared to the consensus estimate of $226.55 million. During the same quarter in the prior year, the company earned $0.52 earnings per share. The firm’s revenue for the quarter was up 15.9% on a year-over-year basis. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS and its FY 2025 guidance at 2.000-2.050 EPS. As a group, analysts forecast that DigitalOcean will post 1.01 EPS for the current year.

Hedge Funds Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently modified their holdings of the stock. Northern Trust Corp grew its stake in shares of DigitalOcean by 0.4% in the 1st quarter. Northern Trust Corp now owns 728,567 shares of the company’s stock worth $24,327,000 after buying an additional 2,607 shares during the last quarter. Comerica Bank boosted its holdings in DigitalOcean by 77.3% in the first quarter. Comerica Bank now owns 116,461 shares of the company’s stock worth $3,889,000 after acquiring an additional 50,762 shares in the last quarter. Trexquant Investment LP bought a new stake in DigitalOcean in the first quarter worth $1,041,000. Graham Capital Management L.P. grew its stake in shares of DigitalOcean by 284.0% in the first quarter. Graham Capital Management L.P. now owns 39,294 shares of the company’s stock worth $1,312,000 after acquiring an additional 29,061 shares during the last quarter. Finally, Advisors Asset Management Inc. raised its position in shares of DigitalOcean by 39.6% in the 1st quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company’s stock worth $74,000 after purchasing an additional 632 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the stock. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 22nd. Cantor Fitzgerald set a $47.00 price target on shares of DigitalOcean and gave the stock a “neutral” rating in a research note on Thursday, November 6th. UBS Group upped their price target on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th. Oppenheimer assumed coverage on DigitalOcean in a report on Monday, November 10th. They issued an “outperform” rating and a $60.00 price objective on the stock. Finally, Barclays increased their target price on DigitalOcean from $40.00 to $49.00 and gave the company an “overweight” rating in a report on Thursday, November 6th. Eight investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, DigitalOcean presently has a consensus rating of “Moderate Buy” and a consensus target price of $48.75.

About DigitalOcean

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.