DigitalOcean Holdings, Inc. (NYSE:DOCN) Given Consensus Recommendation of “Hold” by Analysts

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have received a consensus rating of “Hold” from the twelve research firms that are presently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and six have issued a buy recommendation on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $41.4545.

Several brokerages have recently issued reports on DOCN. Wall Street Zen upgraded DigitalOcean from a “hold” rating to a “buy” rating in a research report on Sunday, June 29th. Barclays boosted their price target on DigitalOcean from $38.00 to $40.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 6th. Canaccord Genuity Group increased their price target on DigitalOcean from $45.00 to $49.00 and gave the stock a “buy” rating in a research note on Wednesday, August 6th. Morgan Stanley lifted their price objective on shares of DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a research note on Wednesday, August 6th. Finally, Stifel Nicolaus set a $36.00 target price on shares of DigitalOcean in a research report on Tuesday, August 5th.

Insider Activity

In related news, insider Bratin Saha sold 13,010 shares of the firm’s stock in a transaction that occurred 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 transaction, the insider owned 269,465 shares in the company, valued at $8,587,849.55. This trade represents a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.96% of the stock is owned by company insiders.

Institutional Investors Weigh In On DigitalOcean

Institutional investors have recently added to or reduced their stakes in the company. Viking Fund Management LLC acquired a new position in shares of DigitalOcean during the 1st quarter valued at $2,170,000. Wesbanco Bank Inc. bought a new position in DigitalOcean during the first quarter valued at about $808,000. 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 acquiring an additional 441,535 shares during the period. Nuveen LLC bought a new stake in DigitalOcean in the first quarter worth about $5,737,000. Finally, Concurrent Investment Advisors LLC bought a new stake in DigitalOcean in the first quarter worth about $265,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean Stock Performance

Shares of DOCN opened at $36.53 on Friday. The firm has a fifty day moving average of $30.70 and a 200-day moving average of $31.19. The company has a market cap of $3.33 billion, a price-to-earnings ratio of 28.10, a price-to-earnings-growth ratio of 1.94 and a beta of 1.77. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $47.02.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.47 by $0.12. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The firm had revenue of $218.70 million for the quarter, compared to the consensus estimate of $216.62 million. During the same period last year, the firm posted $0.48 EPS. DigitalOcean’s quarterly revenue was up 13.6% compared to the same quarter last year. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. Analysts predict that DigitalOcean will post 1.01 EPS for the current year.

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).