DigitalOcean (NYSE:DOCN) Now Covered by Analysts at UBS Group

UBS Group initiated coverage on shares of DigitalOcean (NYSE:DOCN) in a research note released on Tuesday, Marketbeat Ratings reports. The firm issued a neutral rating and a $40.00 price objective on the stock.

A number of other brokerages have also weighed in on DOCN. Morgan Stanley raised their target price on shares of DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a research report on Wednesday, August 6th. Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a research report on Saturday, September 27th. Canaccord Genuity Group raised their target price on shares of DigitalOcean from $45.00 to $49.00 and gave the company a “buy” rating in a research report on Wednesday, August 6th. Wall Street Zen lowered shares of DigitalOcean from a “buy” rating to a “hold” rating in a research report on Friday, October 3rd. Finally, Barclays raised their target price on shares of DigitalOcean from $38.00 to $40.00 and gave the company an “overweight” rating in a research report on Wednesday, August 6th. Six investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, DigitalOcean has a consensus rating of “Hold” and an average price target of $42.18.

DigitalOcean Trading Down 0.0%

NYSE DOCN opened at $38.38 on Tuesday. The firm has a market capitalization of $3.49 billion, a price-to-earnings ratio of 29.52, a P/E/G ratio of 2.18 and a beta of 1.76. The firm’s 50 day simple moving average is $33.45 and its 200 day simple moving average is $30.87. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $47.02.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share (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 business had revenue of $218.70 million for the quarter, compared to analyst estimates of $216.62 million. During the same quarter last year, the business posted $0.48 EPS. The firm’s revenue for the quarter 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 forecast that DigitalOcean will post 1.01 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Bratin Saha sold 13,010 shares of DigitalOcean 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 transaction, the insider owned 269,465 shares of the company’s stock, valued at $8,587,849.55. This trade represents a 4.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.74% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Fuller & Thaler Asset Management Inc. increased its stake in DigitalOcean by 28.6% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 1,987,177 shares of the company’s stock valued at $66,352,000 after purchasing an additional 441,535 shares in the last quarter. Lazard Asset Management LLC increased its stake in DigitalOcean by 34.5% in the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after purchasing an additional 426,264 shares in the last quarter. Norges Bank bought a new stake in DigitalOcean in the second quarter valued at $22,633,000. Northern Trust Corp increased its stake in DigitalOcean by 0.4% in the first quarter. Northern Trust Corp now owns 728,567 shares of the company’s stock valued at $24,327,000 after purchasing an additional 2,607 shares in the last quarter. Finally, Frontier Capital Management Co. LLC increased its stake in DigitalOcean by 75.9% in the second quarter. Frontier Capital Management Co. LLC now owns 706,227 shares of the company’s stock valued at $20,170,000 after purchasing an additional 304,805 shares in the last quarter. 49.77% of the stock is owned by institutional investors.

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).