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

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have been given an average recommendation of “Hold” by the thirteen brokerages that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, six have given a hold recommendation and six have assigned a buy recommendation to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $42.7273.

A number of equities research analysts have issued reports on DOCN shares. UBS Group started coverage on DigitalOcean in a research report on Tuesday, October 7th. They set a “neutral” rating and a $40.00 price target for the company. Wall Street Zen downgraded DigitalOcean from a “buy” rating to a “hold” rating in a research report on Friday, October 3rd. Weiss Ratings reissued a “hold (c)” rating on shares of DigitalOcean in a research report on Wednesday, October 8th. Barclays upped their target price on DigitalOcean from $38.00 to $40.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 6th. Finally, Canaccord Genuity Group upped their target price on DigitalOcean from $49.00 to $55.00 and gave the stock a “buy” rating in a research report on Thursday.

Insider Buying and Selling at DigitalOcean

In other news, insider Bratin Saha sold 13,010 shares of the company’s stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total value of $414,628.70. Following the completion of the sale, the insider owned 269,465 shares of the company’s stock, valued at $8,587,849.55. This 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 this hyperlink. 0.74% of the stock is owned by insiders.

Institutional Investors Weigh In On DigitalOcean

Institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new stake in DigitalOcean during the second quarter valued at approximately $22,633,000. Fuller & Thaler Asset Management Inc. raised its stake 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 valued at $66,352,000 after buying an additional 441,535 shares in the last quarter. Lazard Asset Management LLC raised its stake in DigitalOcean by 34.5% during the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after buying an additional 426,264 shares in the last quarter. Frontier Capital Management Co. LLC raised its stake in DigitalOcean by 75.9% during the second quarter. Frontier Capital Management Co. LLC now owns 706,227 shares of the company’s stock valued at $20,170,000 after buying an additional 304,805 shares in the last quarter. Finally, Penserra Capital Management LLC acquired a new stake in DigitalOcean during the second quarter valued at approximately $6,580,000. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Stock Up 6.3%

Shares of NYSE:DOCN opened at $39.65 on Tuesday. The company has a market cap of $3.61 billion, a P/E ratio of 30.50, a P/E/G ratio of 2.12 and a beta of 1.76. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $47.02. The business has a fifty day simple moving average of $34.37 and a 200-day simple moving average of $30.89.

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, beating analysts’ consensus estimates of $0.47 by $0.12. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%.The firm had revenue of $218.70 million during the quarter, compared to the consensus estimate of $216.62 million. During the same quarter in the previous year, the business earned $0.48 earnings per share. The firm’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. Sell-side analysts expect that DigitalOcean will post 1.01 earnings per share for the current fiscal 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).