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Brokerages Set DigitalOcean Holdings, Inc. (NYSE:DOCN) Target Price at $41.45

DigitalOcean logo with Computer and Technology background

Key Points

  • DigitalOcean Holdings, Inc. has a consensus rating of "Hold" from analysts, with one sell recommendation, five holds, and six buy recommendations.
  • The average 1-year price target for DigitalOcean shares is $41.45, indicating potential for growth despite a current market cap of $3.33 billion.
  • The company recently reported earnings of $0.59 per share, surpassing estimates and showing a revenue increase of 13.6% year-over-year.
  • Five stocks we like better than DigitalOcean.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) has been assigned an average recommendation of "Hold" from the twelve ratings firms that are covering the company, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, five have issued a hold recommendation and six have issued a buy recommendation on the company. The average 1-year target price among brokerages that have covered the stock in the last year is $41.4545.

DOCN has been the subject of several research reports. Canaccord Genuity Group upped their target price on shares of DigitalOcean from $45.00 to $49.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Barclays upped their target price on shares of DigitalOcean from $38.00 to $40.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. Morgan Stanley upped their target price on shares of DigitalOcean from $41.00 to $44.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. Stifel Nicolaus set a $36.00 target price on shares of DigitalOcean in a research report on Tuesday, August 5th. Finally, Wall Street Zen upgraded shares of DigitalOcean from a "hold" rating to a "buy" rating in a research report on Sunday, June 29th.

Read Our Latest Stock Report on DigitalOcean

Insider Transactions at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 13,010 shares of the company's stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total transaction of $414,628.70. Following the completion of the sale, the insider directly owned 269,465 shares in the company, valued at $8,587,849.55. This represents a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.96% of the stock is currently owned by insiders.

Institutional Trading of DigitalOcean

Several institutional investors have recently added to or reduced their stakes in the business. Marex Group plc purchased a new stake in DigitalOcean during the second quarter valued at about $242,000. State of Wyoming boosted its position in DigitalOcean by 49.6% during the second quarter. State of Wyoming now owns 6,750 shares of the company's stock valued at $193,000 after buying an additional 2,239 shares during the period. Hudson Bay Capital Management LP purchased a new stake in DigitalOcean during the second quarter valued at about $1,714,000. Public Sector Pension Investment Board boosted its position in DigitalOcean by 6.0% during the second quarter. Public Sector Pension Investment Board now owns 214,160 shares of the company's stock valued at $6,116,000 after buying an additional 12,205 shares during the period. Finally, Tower Research Capital LLC TRC boosted its position in DigitalOcean by 170.3% during the second quarter. Tower Research Capital LLC TRC now owns 8,878 shares of the company's stock valued at $254,000 after buying an additional 5,594 shares during the period. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Trading Down 0.4%

Shares of DOCN traded down $0.14 during mid-day trading on Friday, reaching $36.19. 2,523,704 shares of the stock traded hands, compared to its average volume of 2,171,140. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $47.02. The firm has a fifty day moving average price of $31.26 and a 200 day moving average price of $31.02. The company has a market cap of $3.29 billion, a price-to-earnings ratio of 27.84, a price-to-earnings-growth ratio of 2.06 and a beta of 1.77.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.47 by $0.12. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The company had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. During the same period in the previous year, the business earned $0.48 earnings per share. The firm's quarterly revenue was up 13.6% compared to the same quarter last year. 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 EPS for the current year.

DigitalOcean Company Profile

(Get Free Report)

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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Analyst Recommendations for DigitalOcean (NYSE:DOCN)

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