DigitalOcean (NYSE:DOCN) Earns "Hold (C)" Rating from Weiss Ratings

Key Points

• DigitalOcean's stock has received a "Hold (C)" rating from Weiss Ratings, while various brokerages continue to adjust price targets, with consensus at approximately $42.18.
• Despite a 1.1% decline in stock price to $37.85, DigitalOcean reported earnings of $0.59 per share, exceeding estimates and showing a 13.6% year-over-year revenue growth.
• Insider trading activity was notable with Bratin Saha selling 13,010 shares, reflecting a decrease in ownership, while hedge funds have been actively changing their stakes in the company.

DigitalOcean (NYSE:DOCN - Get Free Report)'s stock had its "hold (c)" rating reissued by Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

A number of other brokerages have also issued reports on DOCN. UBS Group began coverage on shares of DigitalOcean in a research note on Tuesday. They set a "neutral" rating and a $40.00 price target on the stock. Canaccord Genuity Group upped their price target on shares of DigitalOcean from $45.00 to $49.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Stifel Nicolaus set a $36.00 price target on shares of DigitalOcean in a research note on Tuesday, August 5th. Morgan Stanley upped their price target on shares of DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Finally, Barclays upped their price target on shares of DigitalOcean from $38.00 to $40.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $42.18.

DigitalOcean Stock Down 1.1%

Shares of NYSE DOCN traded down $0.44 during trading hours on Wednesday, hitting $37.85. 2,242,115 shares of the stock were exchanged, compared to its average volume of 2,792,362. The company has a market cap of $3.45 billion, a PE ratio of 29.12, a PEG ratio of 2.18 and a beta of 1.76. The firm has a fifty day moving average price of $33.65 and a 200-day moving average price of $30.92. DigitalOcean has a 12 month low of $25.45 and a 12 month high of $47.02.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.47 by $0.12. The firm had revenue of $218.70 million during the quarter, compared to analyst estimates of $216.62 million. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. DigitalOcean's revenue was up 13.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.48 EPS. 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, equities analysts anticipate that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other news, insider Bratin Saha sold 13,010 shares of the stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total value of $414,628.70. Following the sale, the insider 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.96% of the stock is owned by insiders.

Institutional Trading of DigitalOcean

A number of hedge funds have recently added to or reduced their stakes in DOCN. CX Institutional boosted its holdings in DigitalOcean by 780.5% during the second quarter. CX Institutional now owns 1,039 shares of the company's stock worth $30,000 after buying an additional 921 shares in the last quarter. GAMMA Investing LLC boosted its holdings in DigitalOcean by 336.1% during the first quarter. GAMMA Investing LLC now owns 1,064 shares of the company's stock worth $36,000 after buying an additional 820 shares in the last quarter. Farther Finance Advisors LLC boosted its holdings in DigitalOcean by 135,100.0% during the first quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company's stock worth $46,000 after buying an additional 1,351 shares in the last quarter. SVB Wealth LLC purchased a new stake in DigitalOcean during the first quarter worth $48,000. Finally, Advisors Asset Management Inc. boosted its holdings in DigitalOcean by 39.6% during the first quarter. Advisors Asset Management Inc. now owns 2,229 shares of the company's stock worth $74,000 after buying an additional 632 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

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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