DigitalOcean Holdings, Inc. (NYSE:DOCN) Given Consensus Rating of “Moderate Buy” by Analysts

DigitalOcean Holdings, Inc. (NYSE:DOCN) has earned an average recommendation of “Moderate Buy” from the thirteen brokerages that are currently covering the company, Marketbeat.com reports. Six investment analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 1-year price target among brokerages that have updated their coverage on the stock in the last year is $47.7273.

DOCN has been the subject of a number of analyst reports. Canaccord Genuity Group raised their target price on shares of DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday. Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a report on Wednesday, October 8th. Stifel Nicolaus set a $36.00 target price on DigitalOcean in a report on Tuesday, August 5th. Bank of America raised DigitalOcean from an “underperform” rating to a “buy” rating and increased their price target for the company from $34.00 to $60.00 in a research report on Thursday. Finally, Wall Street Zen raised DigitalOcean from a “hold” rating to a “buy” rating in a research report on Saturday, November 1st.

Insiders Place Their Bets

In other DigitalOcean news, insider Bratin Saha sold 13,010 shares of the company’s stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total transaction of $414,628.70. Following the sale, the insider directly owned 269,465 shares of the company’s stock, valued at approximately $8,587,849.55. This represents a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its stake in shares of DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after purchasing an additional 442,617 shares during the last quarter. Fuller & Thaler Asset Management Inc. grew its holdings in DigitalOcean by 28.6% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 1,987,177 shares of the company’s stock worth $66,352,000 after purchasing an additional 441,535 shares during the period. Lazard Asset Management LLC increased its position in DigitalOcean by 34.5% during the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock worth $47,430,000 after buying an additional 426,264 shares during the last quarter. Van Berkom & Associates Inc. raised its stake in DigitalOcean by 33.1% in the third quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock valued at $53,460,000 after buying an additional 389,161 shares during the period. Finally, Norges Bank bought a new stake in DigitalOcean in the second quarter valued at approximately $22,633,000. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Stock Performance

Shares of DigitalOcean stock opened at $49.48 on Friday. The firm has a market cap of $4.53 billion, a PE ratio of 19.95, a P/E/G ratio of 2.68 and a beta of 1.78. The business’s 50 day simple moving average is $38.03 and its 200 day simple moving average is $32.52. DigitalOcean has a 52-week low of $25.45 and a 52-week high of $49.62.

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

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).