Bank of America Increases DigitalOcean (NYSE:DOCN) Price Target to $72.00

DigitalOcean (NYSE:DOCN) had its price objective boosted by analysts at Bank of America from $60.00 to $72.00 in a report released on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Bank of America‘s price objective suggests a potential upside of 18.11% from the stock’s current price.

Several other analysts have also recently commented on the stock. Cantor Fitzgerald set a $47.00 price objective on DigitalOcean and gave the company a “neutral” rating in a research note on Thursday, November 6th. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Wall Street Zen lowered shares of DigitalOcean from a “buy” rating to a “hold” rating in a report on Sunday, January 4th. Canaccord Genuity Group upped their price objective on shares of DigitalOcean from $55.00 to $60.00 and gave the stock a “buy” rating in a report on Thursday, November 6th. Finally, Oppenheimer assumed coverage on DigitalOcean in a research report on Monday, November 10th. They set an “outperform” rating and a $60.00 target price on the stock. Seven equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $50.50.

DigitalOcean Stock Up 3.4%

DOCN traded up $2.02 during midday trading on Tuesday, reaching $60.96. The company had a trading volume of 2,919,624 shares, compared to its average volume of 2,439,715. The business has a 50-day moving average of $48.92 and a two-hundred day moving average of $40.29. The company has a market cap of $5.58 billion, a P/E ratio of 24.60, a P/E/G ratio of 7.70 and a beta of 1.76. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $64.09.

DigitalOcean (NYSE:DOCN) last posted its quarterly 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 net margin of 29.15% and a negative return on equity of 92.51%. The firm had revenue of $229.63 million for the quarter, compared to analysts’ expectations of $226.55 million. During the same period in the prior year, the business posted $0.52 earnings per share. The business’s revenue for the quarter was up 15.9% on a year-over-year basis. 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 predict that DigitalOcean will post 1.01 EPS for the current year.

Institutional Trading of DigitalOcean

Institutional investors have recently modified their holdings of the stock. Bayforest Capital Ltd lifted its stake in DigitalOcean by 77,914.3% in the fourth quarter. Bayforest Capital Ltd now owns 5,461 shares of the company’s stock valued at $263,000 after purchasing an additional 5,454 shares during the last quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT bought a new position in DigitalOcean during the 4th quarter worth approximately $5,582,000. Campbell Newman Asset Management Inc. purchased a new position in shares of DigitalOcean in the fourth quarter valued at about $2,101,000. CWM LLC raised its holdings in DigitalOcean by 1.3% in the 4th quarter. CWM LLC now owns 20,971 shares of the company’s stock worth $1,009,000 after purchasing an additional 270 shares in the last quarter. Finally, Oak Ridge Investments LLC purchased a new position in shares of DigitalOcean in the 4th quarter valued at approximately $1,770,000. 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.