DigitalOcean (NYSE:DOCN) Rating Lowered to Hold at Wall Street Zen

DigitalOcean (NYSE:DOCN) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.

DOCN has been the subject of several other research reports. Stifel Nicolaus set a $36.00 target price on shares of DigitalOcean in a report on Tuesday, August 5th. Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a report on Saturday, September 27th. Canaccord Genuity Group upped their target price on shares of DigitalOcean from $45.00 to $49.00 and gave the company a “buy” rating in a report on Wednesday, August 6th. Morgan Stanley upped their target price on shares of DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a report on Wednesday, August 6th. Finally, Barclays upped their target price on shares of DigitalOcean from $38.00 to $40.00 and gave the company an “overweight” rating in a report on Wednesday, August 6th. Six equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $41.45.

DigitalOcean Stock Down 3.3%

NYSE DOCN opened at $37.42 on Friday. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $47.02. The stock has a market capitalization of $3.41 billion, a PE ratio of 28.78, a price-to-earnings-growth ratio of 2.12 and a beta of 1.76. The firm has a 50 day moving average of $33.07 and a two-hundred day moving average of $30.85.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping 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 company had revenue of $218.70 million during the quarter, compared to analysts’ expectations of $216.62 million. During the same quarter in the previous year, the business posted $0.48 EPS. The firm’s revenue was up 13.6% on a year-over-year basis. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. On average, equities research analysts expect that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Bratin Saha sold 13,010 shares of the 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 completion of the sale, the insider owned 269,465 shares in the company, valued at $8,587,849.55. This represents a 4.61% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.96% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

Large investors have recently bought and sold shares of the company. CX Institutional raised its position in DigitalOcean by 780.5% during the 2nd quarter. CX Institutional now owns 1,039 shares of the company’s stock worth $30,000 after buying an additional 921 shares during the last quarter. GAMMA Investing LLC raised its position in DigitalOcean by 336.1% during the 1st quarter. GAMMA Investing LLC now owns 1,064 shares of the company’s stock worth $36,000 after buying an additional 820 shares during the last quarter. Farther Finance Advisors LLC raised its position in DigitalOcean by 135,100.0% during the 1st quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company’s stock worth $46,000 after buying an additional 1,351 shares during the last quarter. SVB Wealth LLC purchased a new position in DigitalOcean during the 1st quarter worth $48,000. Finally, Advisors Asset Management Inc. raised its position in DigitalOcean by 39.6% during the 1st quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company’s stock worth $74,000 after buying an additional 632 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

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).