DigitalOcean (NYSE:DOCN) Downgraded to “Hold” Rating by Wall Street Zen

Wall Street Zen cut shares of DigitalOcean (NYSE:DOCN) from a buy rating to a hold rating in a research note published on Sunday.

Several other analysts also recently weighed in on DOCN. Morgan Stanley lifted 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. Cantor Fitzgerald set a $47.00 target price on DigitalOcean and gave the company a “neutral” rating in a report on Thursday. Stifel Nicolaus set a $36.00 price objective on shares of DigitalOcean in a research note on Tuesday, August 5th. Barclays raised their price objective on DigitalOcean from $40.00 to $49.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a report on Wednesday, October 8th. Eight equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $48.75.

DigitalOcean Stock Up 4.4%

Shares of DOCN traded up $2.18 on Friday, hitting $51.66. 3,474,417 shares of the stock traded hands, compared to its average volume of 2,045,694. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $52.20. The firm has a market capitalization of $4.73 billion, a P/E ratio of 20.83, a P/E/G ratio of 6.30 and a beta of 1.78. The stock’s 50 day moving average is $38.03 and its two-hundred day moving average is $32.59.

DigitalOcean (NYSE:DOCN) last released its earnings results on Wednesday, November 5th. The company reported $0.54 earnings per share (EPS) 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 firm had revenue of $229.63 million during the quarter, compared to the consensus estimate of $226.55 million. During the same period in the previous year, the firm earned $0.52 earnings per share. DigitalOcean’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. FY 2025 guidance at 2.000-2.050 EPS. Research analysts forecast that DigitalOcean will post 1.01 EPS for the current year.

Insider Transactions at DigitalOcean

In related news, insider Bratin Saha sold 13,010 shares of the 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 sale, the insider owned 269,465 shares in the company, valued at $8,587,849.55. This trade represents a 4.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.96% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. lifted its stake in shares of DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after buying an additional 442,617 shares during the last quarter. Fuller & Thaler Asset Management Inc. raised 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 lifted 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 worth $47,430,000 after purchasing an additional 426,264 shares during the last quarter. Van Berkom & Associates Inc. lifted its holdings in shares of DigitalOcean by 33.1% in the third quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock worth $53,460,000 after acquiring an additional 389,161 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of DigitalOcean during the second quarter worth $22,633,000. 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).