Brokerages Set DigitalOcean Holdings, Inc. (NYSE:DOCN) PT at $49.92

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have earned an average rating of “Moderate Buy” from the fifteen research firms that are currently covering the company, Marketbeat.com reports. Seven equities research analysts have rated the stock with a hold recommendation and eight have assigned a buy recommendation to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $49.9231.

Several equities analysts have weighed in on DOCN shares. UBS Group raised their target price on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Bank of America upgraded shares of DigitalOcean from an “underperform” rating to a “buy” rating and increased their price target for the company from $34.00 to $60.00 in a research report on Thursday, November 6th. Oppenheimer started coverage on DigitalOcean in a research report on Monday, November 10th. They set an “outperform” rating and a $60.00 price objective for the company. Piper Sandler upped their target price on DigitalOcean from $47.00 to $50.00 and gave the company a “neutral” rating in a research note on Monday, January 5th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th.

DigitalOcean Price Performance

NYSE DOCN opened at $52.79 on Thursday. The business has a 50 day moving average price of $48.22 and a 200 day moving average price of $39.20. The company has a market capitalization of $4.83 billion, a P/E ratio of 21.29, a PEG ratio of 7.57 and a beta of 1.76. DigitalOcean has a 1-year low of $25.45 and a 1-year high of $57.00.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, topping 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 period in the previous year, the business earned $0.52 earnings per share. DigitalOcean’s quarterly 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, research analysts expect that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its stake in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the last quarter. CX Institutional raised its position 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 buying an additional 921 shares during the last quarter. Wilmington Savings Fund Society FSB purchased a new position in shares of DigitalOcean during the third quarter valued at approximately $37,000. Advisory Services Network LLC acquired a new stake in DigitalOcean during the third quarter worth approximately $54,000. Finally, Farther Finance Advisors LLC grew its stake in DigitalOcean by 42.3% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock worth $55,000 after acquiring an additional 572 shares during the period. Institutional investors and hedge funds own 49.77% of the company’s stock.

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.