DigitalOcean (NYSE:DOCN) Hits New 12-Month High – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $54.86 and last traded at $54.7230, with a volume of 432372 shares. The stock had previously closed at $53.20.

Analysts Set New Price Targets

Several research firms have recently weighed in on DOCN. Piper Sandler upped their price objective on DigitalOcean from $47.00 to $50.00 and gave the company a “neutral” rating in a research note on Monday, January 5th. Wall Street Zen lowered DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Oppenheimer began coverage on DigitalOcean in a report on Monday, November 10th. They set an “outperform” rating and a $60.00 price objective for the company. Finally, UBS Group upped their target price on shares of DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a report on Thursday, November 6th. Eight investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $49.92.

DigitalOcean Price Performance

The stock has a 50 day moving average price of $47.32 and a two-hundred day moving average price of $38.38. The company has a market capitalization of $5.06 billion, a price-to-earnings ratio of 22.30, a price-to-earnings-growth ratio of 7.64 and a beta of 1.76.

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

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Allworth Financial LP increased its position in DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the period. CX Institutional boosted its stake in shares of DigitalOcean by 780.5% in the 2nd quarter. CX Institutional now owns 1,039 shares of the company’s stock valued at $30,000 after purchasing an additional 921 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in shares of DigitalOcean during the 3rd quarter worth approximately $37,000. Advisory Services Network LLC bought a new stake in shares of DigitalOcean during the third quarter worth approximately $54,000. Finally, Farther Finance Advisors LLC lifted its holdings in DigitalOcean by 42.3% in the second quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock valued at $55,000 after buying an additional 572 shares during the period. 49.77% of the stock is currently owned by institutional investors.

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.