DigitalOcean Holdings, Inc. (NYSE:DOCN) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have been given a consensus recommendation of “Moderate Buy” by the fifteen ratings firms that are presently covering the firm, Marketbeat.com reports. Seven research analysts have rated the stock with a hold rating and eight have given a buy rating to the company. The average 12-month price target among brokers that have issued ratings on the stock in the last year is $49.9231.

Several research analysts have issued reports on the company. Piper Sandler boosted their target price on DigitalOcean from $47.00 to $50.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Canaccord Genuity Group raised their price target on DigitalOcean from $55.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th. Wall Street Zen downgraded DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. Barclays lifted their target price on DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a research report on Monday. Finally, UBS Group boosted their price objective on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th.

Hedge Funds Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank purchased a new position in shares of DigitalOcean during the second quarter valued at $22,633,000. Alyeska Investment Group L.P. bought a new position in DigitalOcean during the 3rd quarter worth about $21,808,000. Vanguard Group Inc. increased its position in DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after purchasing an additional 442,617 shares during the period. Danske Bank A S bought a new stake in shares of DigitalOcean in the 3rd quarter valued at about $14,582,000. Finally, Lazard Asset Management LLC raised its holdings in shares of DigitalOcean by 34.5% in the 2nd 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. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Stock Performance

NYSE:DOCN opened at $52.72 on Thursday. The firm has a market capitalization of $4.82 billion, a PE ratio of 21.26, a PEG ratio of 7.81 and a beta of 1.76. The stock’s fifty day moving average is $48.04 and its 200 day moving average is $38.86. DigitalOcean has a fifty-two week low of $25.45 and a fifty-two week high of $57.00.

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

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.