DigitalOcean (NYSE:DOCN) Sets New 12-Month High – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price hit 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. The stock had previously closed at $53.61.

Analysts Set New Price Targets

DOCN has been the topic of a number of recent analyst reports. Oppenheimer started 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. Piper Sandler upped their price objective on shares of DigitalOcean from $47.00 to $50.00 and gave the stock a “neutral” rating in a research report on Monday, January 5th. Barclays raised their target price on shares of DigitalOcean from $49.00 to $63.00 and gave the company an “overweight” rating in a research report on Monday, January 12th. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 29th. Finally, Cantor Fitzgerald set a $47.00 price target on DigitalOcean and gave the company a “neutral” rating in a research note on Thursday, November 6th. Seven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, DigitalOcean has an average rating of “Moderate Buy” and a consensus price target of $50.50.

DigitalOcean Stock Down 0.0%

The firm has a 50 day moving average price of $49.25 and a 200 day moving average price of $40.52. The stock has a market capitalization of $5.51 billion, a PE ratio of 24.29, a P/E/G ratio of 8.46 and a beta of 1.76.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Wednesday, November 5th. The company reported $0.54 earnings per share 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 firm 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. The company’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 analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current fiscal year.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DOCN. 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 acquiring an additional 255 shares during the last quarter. CX Institutional raised 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 valued at $30,000 after buying an additional 921 shares in the last quarter. Wilmington Savings Fund Society FSB purchased a new position in DigitalOcean in the third quarter worth $37,000. Advisory Services Network LLC purchased a new stake in DigitalOcean during the third quarter valued at about $54,000. Finally, Farther Finance Advisors LLC lifted its stake in DigitalOcean by 42.3% during the second quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock worth $55,000 after purchasing an additional 572 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other 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.