DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives Average Recommendation of “Moderate Buy” from Brokerages

DigitalOcean Holdings, Inc. (NYSE:DOCN) has received an average recommendation of “Moderate Buy” from the fourteen brokerages that are currently covering the firm, MarketBeat reports. Six investment analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $48.75.

A number of research analysts have recently issued reports on the company. Wall Street Zen downgraded DigitalOcean from a “buy” rating to a “hold” rating in a report on Sunday, November 9th. Oppenheimer initiated coverage on shares of DigitalOcean in a report on Monday, November 10th. They set an “outperform” rating and a $60.00 price target on the stock. Cantor Fitzgerald set a $47.00 price objective on shares of DigitalOcean and gave the company a “neutral” rating in a report on Thursday, November 6th. Barclays increased their price objective on shares of DigitalOcean from $40.00 to $49.00 and gave the company an “overweight” rating in a research report on Thursday, November 6th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 15th.

DigitalOcean Stock Performance

Shares of DOCN stock opened at $47.48 on Friday. The company has a market capitalization of $4.34 billion, a price-to-earnings ratio of 19.15, a price-to-earnings-growth ratio of 5.97 and a beta of 1.77. DigitalOcean has a one year low of $25.45 and a one year high of $52.20. The company’s 50-day moving average is $44.35 and its 200 day moving average is $36.00.

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Allworth Financial LP grew its stake in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares during the period. CX Institutional grew its position in DigitalOcean by 780.5% during the second quarter. CX Institutional now owns 1,039 shares of the company’s stock valued at $30,000 after buying an additional 921 shares during the period. Wilmington Savings Fund Society FSB purchased a new stake in DigitalOcean during the third quarter valued at approximately $37,000. SVB Wealth LLC bought a new position in DigitalOcean in the first quarter worth approximately $48,000. Finally, Advisory Services Network LLC purchased a new position in shares of DigitalOcean during the 3rd quarter worth $54,000. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Company Profile

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.