DigitalOcean (NYSE:DOCN) Hits New 12-Month High – Here’s Why

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares reached a new 52-week high during trading on Tuesday . The company traded as high as $52.20 and last traded at $52.5710, with a volume of 289538 shares trading hands. The stock had previously closed at $50.61.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 29th. Cantor Fitzgerald set a $47.00 target price on DigitalOcean and gave the stock a “neutral” rating in a research report on Thursday, November 6th. Barclays increased their price target on shares of DigitalOcean from $40.00 to $49.00 and gave the company an “overweight” rating in a research report on Thursday, November 6th. Piper Sandler lifted their price target on shares of DigitalOcean from $47.00 to $50.00 and gave the stock a “neutral” rating in a research note on Monday. Finally, UBS Group upped their price objective on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research note on Thursday, November 6th. Eight research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, DigitalOcean currently has an average rating of “Moderate Buy” and a consensus target price of $48.85.

DigitalOcean Stock Down 2.1%

The company has a market capitalization of $4.80 billion, a PE ratio of 21.14, a price-to-earnings-growth ratio of 7.75 and a beta of 1.76. The stock’s fifty day moving average price is $46.78 and its two-hundred day moving average price is $37.96.

DigitalOcean (NYSE:DOCN) last announced its quarterly 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 negative return on equity of 92.51% and a net margin of 29.15%.The company had revenue of $229.63 million for the quarter, compared to the consensus estimate of $226.55 million. During the same quarter in the previous year, the business earned $0.52 EPS. 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 and its FY 2025 guidance at 2.000-2.050 EPS. On average, equities research analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in DOCN. Allworth Financial LP increased its position in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after buying an additional 255 shares during the period. CX Institutional boosted its position in DigitalOcean by 780.5% during the 2nd quarter. CX Institutional now owns 1,039 shares of the company’s stock valued at $30,000 after acquiring an additional 921 shares in the last quarter. Wilmington Savings Fund Society FSB purchased a new position in shares of DigitalOcean during the 3rd quarter worth approximately $37,000. GAMMA Investing LLC grew its holdings in shares of DigitalOcean by 33.8% during the 4th quarter. GAMMA Investing LLC now owns 1,581 shares of the company’s stock worth $76,000 after acquiring an additional 399 shares during the period. Finally, Advisory Services Network LLC bought a new position in shares of DigitalOcean in the 3rd quarter worth approximately $54,000. 49.77% of the stock is currently owned by 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.