DigitalOcean (NYSE:DOCN) Upgraded by Wall Street Zen to “Buy” Rating

Wall Street Zen upgraded shares of DigitalOcean (NYSE:DOCN) from a hold rating to a buy rating in a research note released on Saturday.

Several other equities research analysts also recently issued reports on the stock. Canaccord Genuity Group lifted their price target 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. Barclays lifted their target price on DigitalOcean from $40.00 to $49.00 and gave the stock an “overweight” rating in a research report on Thursday, November 6th. Cantor Fitzgerald set a $47.00 price target on DigitalOcean and gave the company a “neutral” rating in a report on Thursday, November 6th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 22nd. Finally, Oppenheimer initiated coverage on DigitalOcean in a research report on Monday, November 10th. They issued an “outperform” rating and a $60.00 target price on the stock. Eight equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $48.75.

DigitalOcean Price Performance

NYSE:DOCN opened at $49.56 on Friday. The business’s 50-day moving average is $45.12 and its two-hundred day moving average is $36.71. The firm has a market capitalization of $4.53 billion, a PE ratio of 19.98, a price-to-earnings-growth ratio of 6.22 and a beta of 1.77. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $52.20.

DigitalOcean (NYSE:DOCN) last posted 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. The business had revenue of $229.63 million during the quarter, compared to analyst estimates of $226.55 million. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The company’s revenue for the quarter was up 15.9% compared to the same quarter last year. During the same quarter last year, the firm earned $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. Equities analysts anticipate that DigitalOcean will post 1.01 EPS for the current year.

Hedge Funds Weigh In On DigitalOcean

Several large investors have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its position in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in shares of DigitalOcean during the 3rd quarter worth about $249,000. Wilmington Savings Fund Society FSB bought a new position in shares of DigitalOcean during the 3rd quarter valued at $37,000. Danske Bank A S acquired a new stake in DigitalOcean in the 3rd quarter worth approximately $14,582,000. Finally, Advisory Services Network LLC bought a new stake in DigitalOcean during the third quarter worth approximately $54,000. 49.77% of the stock is currently owned by institutional investors.

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.