DigitalOcean (NYSE:DOCN) Cut to “Hold” at Wall Street Zen

Wall Street Zen lowered shares of DigitalOcean (NYSE:DOCN) from a buy rating to a hold rating in a research report released on Friday morning.

A number of other research firms have also recently commented on DOCN. Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a research note on Saturday, September 27th. Morgan Stanley raised their price objective 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. Canaccord Genuity Group upped their target price on shares of DigitalOcean from $45.00 to $49.00 and gave the stock a “buy” rating in a report on Wednesday, August 6th. Barclays increased their price target on DigitalOcean from $38.00 to $40.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 6th. Finally, Stifel Nicolaus set a $36.00 price objective on DigitalOcean in a research report on Tuesday, August 5th. Six analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $41.45.

DigitalOcean Stock Performance

Shares of DigitalOcean stock opened at $37.42 on Friday. The stock has a market cap of $3.41 billion, a P/E ratio of 28.78, a P/E/G ratio of 2.12 and a beta of 1.76. The stock’s fifty day moving average is $33.07 and its 200 day moving average is $30.81. DigitalOcean has a one year low of $25.45 and a one year high of $47.02.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping 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 business had revenue of $218.70 million during the quarter, compared to analysts’ expectations of $216.62 million. During the same quarter in the prior year, the business posted $0.48 earnings per share. The business’s quarterly 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. Analysts predict that DigitalOcean will post 1.01 EPS for the current year.

Insider Activity

In related news, insider Bratin Saha sold 13,010 shares of DigitalOcean stock in a transaction dated 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 directly owned 269,465 shares of the company’s stock, valued at approximately $8,587,849.55. The trade was a 4.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.74% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

Large investors have recently bought and sold shares of the business. Advisors Asset Management Inc. grew its position in DigitalOcean by 18.0% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,630 shares of the company’s stock valued at $75,000 after acquiring an additional 401 shares during the last quarter. Man Group plc boosted its stake in shares of DigitalOcean by 0.5% during the second quarter. Man Group plc now owns 82,485 shares of the company’s stock valued at $2,356,000 after purchasing an additional 420 shares during the period. CWM LLC grew its holdings in shares of DigitalOcean by 2.6% in the second quarter. CWM LLC now owns 18,272 shares of the company’s stock worth $522,000 after purchasing an additional 470 shares during the last quarter. Farther Finance Advisors LLC increased its stake in DigitalOcean by 42.3% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock worth $55,000 after buying an additional 572 shares during the period. Finally, PNC Financial Services Group Inc. lifted its holdings in DigitalOcean by 6.5% during the 2nd quarter. PNC Financial Services Group Inc. now owns 10,242 shares of the company’s stock valued at $293,000 after buying an additional 628 shares in the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

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).