DigitalOcean Holdings, Inc. (NYSE:DOCN) Given Average Recommendation of "Hold" by Analysts

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) has been given a consensus recommendation of "Hold" by the twelve ratings firms that are presently covering the stock, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, five have given a hold recommendation and six have issued a buy recommendation on the company. The average 12-month target price among analysts that have covered the stock in the last year is $41.4545.

Several analysts have recently commented on DOCN shares. Morgan Stanley increased their price objective on DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Barclays upped their target price on DigitalOcean from $38.00 to $40.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. Citigroup cut their target price on DigitalOcean from $50.00 to $40.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. Wall Street Zen raised DigitalOcean from a "hold" rating to a "buy" rating in a research report on Sunday, June 29th. Finally, The Goldman Sachs Group cut their target price on DigitalOcean from $46.00 to $41.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th.

Insiders Place Their Bets

In other DigitalOcean news, insider Bratin Saha sold 3,461 shares of the stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $27.77, for a total transaction of $96,111.97. Following the sale, the insider directly owned 294,546 shares of the company's stock, valued at approximately $8,179,542.42. This trade represents a 1.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.96% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. CX Institutional lifted its stake in DigitalOcean by 780.5% in the 2nd quarter. CX Institutional now owns 1,039 shares of the company's stock worth $30,000 after purchasing an additional 921 shares in the last quarter. GAMMA Investing LLC lifted its stake in DigitalOcean by 336.1% in the 1st quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock worth $36,000 after purchasing an additional 820 shares in the last quarter. Farther Finance Advisors LLC lifted its stake in DigitalOcean by 135,100.0% in the 1st quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company's stock worth $46,000 after purchasing an additional 1,351 shares in the last quarter. SVB Wealth LLC purchased a new position in DigitalOcean in the 1st quarter worth approximately $48,000. Finally, Advisors Asset Management Inc. lifted its stake in DigitalOcean by 39.6% in the 1st quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company's stock worth $74,000 after purchasing an additional 632 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean Stock Up 4.6%

NYSE:DOCN traded up $1.3890 during midday trading on Monday, hitting $31.3790. The stock had a trading volume of 419,562 shares, compared to its average volume of 1,724,320. DigitalOcean has a one year low of $25.45 and a one year high of $47.02. The company has a market capitalization of $2.86 billion, a price-to-earnings ratio of 24.11, a PEG ratio of 1.76 and a beta of 1.75. The stock has a 50-day moving average of $29.27 and a 200 day moving average of $32.31.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share for the quarter, topping analysts' consensus estimates of $0.47 by $0.12. The company had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%.DigitalOcean's revenue was up 13.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.48 earnings per share. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. On average, sell-side analysts anticipate that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

About DigitalOcean

DigitalOcean Holdings, Inc, through its subsidiaries, operates a cloud computing platform in North America, Europe, Asia, and internationally. The company's platform provides on-demand infrastructure and platform tools for developers, start-ups, and small and growing digital businesses. It also offers infrastructure-as-a-service (IaaS) solutions comprising compute and storage services, as well as networking projects, including Cloud Firewalls software, Managed Load Balancers software, and Virtual Private Cloud (VPC).