Brokerages Set DigitalOcean Holdings, Inc. (NYSE:DOCN) Price Target at $48.75

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have earned an average rating of “Moderate Buy” from the fourteen research firms that are presently covering the firm, Marketbeat Ratings reports. Six investment analysts have rated the stock with a hold recommendation and eight have issued a buy recommendation on the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $48.75.

Several research firms recently issued reports on DOCN. Wall Street Zen cut DigitalOcean from a “buy” rating to a “hold” rating in a report on Sunday, November 9th. Bank of America raised DigitalOcean from an “underperform” rating to a “buy” rating and lifted their price target for the stock from $34.00 to $60.00 in a research note on Thursday, November 6th. Barclays boosted their price target on DigitalOcean from $40.00 to $49.00 and gave the stock an “overweight” rating in a research report on Thursday, November 6th. Oppenheimer assumed coverage on DigitalOcean in a research note on Monday, November 10th. They issued an “outperform” rating and a $60.00 price objective for the company. Finally, Canaccord Genuity Group lifted their target price on shares of DigitalOcean from $55.00 to $60.00 and gave the stock a “buy” rating in a research note on Thursday, November 6th.

Institutional Trading of DigitalOcean

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

DigitalOcean Stock Performance

DigitalOcean stock opened at $49.00 on Friday. The stock has a market capitalization of $4.48 billion, a P/E ratio of 19.76, a P/E/G ratio of 6.19 and a beta of 1.77. The company’s fifty day moving average price is $44.71 and its 200 day moving average price is $36.33. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $52.20.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.23. The business had revenue of $229.63 million for the quarter, compared to the consensus estimate of $226.55 million. DigitalOcean had a net margin of 29.15% and a negative return on equity of 92.51%. The company’s revenue was up 15.9% compared to the same quarter last year. During the same period last year, the firm 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. Sell-side analysts predict that DigitalOcean will post 1.01 EPS for the current year.

About DigitalOcean

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.