DigitalOcean (NYSE:DOCN) Reaches New 1-Year High – Time to Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price reached a new 52-week high on Monday . The stock traded as high as $59.42 and last traded at $58.0950, with a volume of 1361955 shares trading hands. The stock had previously closed at $53.61.

Analyst Ratings Changes

A number of research firms recently commented on DOCN. Canaccord Genuity Group upped their price objective on DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a report on Thursday, November 6th. Piper Sandler raised their price objective on DigitalOcean from $47.00 to $50.00 and gave the stock a “neutral” rating in a research report on Monday, January 5th. Oppenheimer began coverage on shares of DigitalOcean in a research report on Monday, November 10th. They issued an “outperform” rating and a $60.00 target price on the stock. Bank of America raised shares of DigitalOcean from an “underperform” rating to a “buy” rating and increased their target price for the stock from $34.00 to $60.00 in a research note on Thursday, November 6th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Eight equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, DigitalOcean currently has an average rating of “Moderate Buy” and an average target price of $49.92.

DigitalOcean Trading Up 10.0%

The company has a market capitalization of $5.40 billion, a price-to-earnings ratio of 23.79, a price-to-earnings-growth ratio of 7.70 and a beta of 1.76. The stock’s fifty day simple moving average is $48.64 and its 200-day simple moving average is $40.08.

DigitalOcean (NYSE:DOCN) last released its earnings results on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, topping the consensus estimate of $0.31 by $0.23. The firm had revenue of $229.63 million during the quarter, compared to analysts’ expectations of $226.55 million. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.DigitalOcean’s revenue for the quarter was up 15.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.52 EPS. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS and its FY 2025 guidance at 2.000-2.050 EPS. On average, analysts anticipate that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current fiscal year.

Institutional Investors Weigh In On DigitalOcean

A number of large investors have recently modified their holdings of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of DigitalOcean by 5.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock worth $11,342,000 after purchasing an additional 16,162 shares during the last quarter. Intech Investment Management LLC lifted its holdings in DigitalOcean by 59.2% during the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after buying an additional 14,655 shares during the last quarter. Farther Finance Advisors LLC lifted its holdings in DigitalOcean by 42.3% during 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 last quarter. CX Institutional boosted its position in shares of DigitalOcean by 780.5% during the 2nd quarter. CX Institutional now owns 1,039 shares of the company’s stock worth $30,000 after acquiring an additional 921 shares in the last quarter. Finally, State of Alaska Department of Revenue increased its holdings in shares of DigitalOcean by 5.9% in the 2nd quarter. State of Alaska Department of Revenue now owns 37,368 shares of the company’s stock valued at $1,067,000 after acquiring an additional 2,086 shares during the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

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.