DigitalOcean Holdings, Inc. (NYSE:DOCN) Given Consensus Rating of "Hold" by Brokerages

Key Points

• DigitalOcean Holdings, Inc. (NYSE:DOCN) has received a consensus rating of "Hold" from thirteen brokerages, with one sell, six hold, and six buy recommendations.
• The average 12-month price target for DigitalOcean among analysts is $41.45, while several brokerages have recently adjusted their target prices, with Canaccord Genuity increasing it to $49.00.
• The company reported a 13.6% increase in revenue year-over-year, with earnings per share of $0.59 exceeding analysts' expectations of $0.47 in the last quarter.

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

Several analysts have recently commented on the company. Weiss Ratings restated a "hold (c)" rating on shares of DigitalOcean in a report on Saturday, September 27th. Canaccord Genuity Group increased their target price on DigitalOcean from $45.00 to $49.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Stifel Nicolaus set a $36.00 price target on DigitalOcean in a report on Tuesday, August 5th. Barclays raised their price target on DigitalOcean from $38.00 to $40.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Finally, Wall Street Zen cut DigitalOcean from a "buy" rating to a "hold" rating in a report on Friday.

Insider Transactions at DigitalOcean

In related news, insider Bratin Saha sold 13,010 shares of the firm's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total value of $414,628.70. Following the transaction, the insider owned 269,465 shares in the company, valued at $8,587,849.55. This trade represents a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.74% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

Hedge funds have recently added to or reduced their stakes in the company. Wesbanco Bank Inc. bought a new position in DigitalOcean in the first quarter valued at about $808,000. Fuller & Thaler Asset Management Inc. boosted its holdings in DigitalOcean by 28.6% during the first quarter. Fuller & Thaler Asset Management Inc. now owns 1,987,177 shares of the company's stock worth $66,352,000 after buying an additional 441,535 shares during the last quarter. Nuveen LLC bought a new position in DigitalOcean during the first quarter worth about $5,737,000. Concurrent Investment Advisors LLC bought a new position in DigitalOcean during the first quarter worth about $265,000. Finally, Sumitomo Mitsui Trust Group Inc. boosted its holdings in DigitalOcean by 119.6% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 16,729 shares of the company's stock worth $559,000 after buying an additional 9,110 shares during the last quarter. Institutional investors own 49.77% of the company's stock.

DigitalOcean Stock Performance

Shares of DOCN stock opened at $38.40 on Tuesday. The stock's fifty day moving average is $33.25 and its 200-day moving average is $30.82. The stock has a market capitalization of $3.50 billion, a PE ratio of 29.54, a PEG ratio of 2.12 and a beta of 1.76. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $47.02.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.47 by $0.12. The company had revenue of $218.70 million for the quarter, compared to analysts' expectations of $216.62 million. DigitalOcean had a negative return on equity of 73.19% and a net margin of 15.18%.The business's revenue for the quarter 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. As a group, analysts forecast 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).

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