DigitalOcean's (DOCN) "Hold (C)" Rating Reiterated at Weiss Ratings

Key Points

• Weiss Ratings has reiterated its "hold (C)" rating for DigitalOcean (DOCN), reflecting caution in the company's stock performance.
• DigitalOcean's stock price decreased by 0.6% to $39.39, maintaining a price-to-earnings ratio of 30.30.
• The company's recent quarterly earnings report showed a net margin of 15.18% and revenue growth of 13.6% year-over-year, indicating positive financial health.

DigitalOcean (NYSE:DOCN - Get Free Report)'s stock had its "hold (c)" rating restated by equities researchers at Weiss Ratings in a report issued on Friday,Weiss Ratings reports.

Other equities research analysts have also recently issued research reports about the stock. Wall Street Zen cut shares of DigitalOcean from a "buy" rating to a "hold" rating in a research report on Friday, October 3rd. Canaccord Genuity Group raised their price objective on shares of DigitalOcean from $49.00 to $55.00 and gave the company a "buy" rating in a research report on Thursday, October 9th. UBS Group initiated coverage on shares of DigitalOcean in a research report on Tuesday, October 7th. They issued a "neutral" rating and a $40.00 price objective for the company. Morgan Stanley raised their price objective on shares of DigitalOcean from $41.00 to $44.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. Finally, Stifel Nicolaus set a $36.00 price objective on shares of DigitalOcean in a research report on Tuesday, August 5th. Six analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $42.73.

DigitalOcean Stock Down 0.6%

DigitalOcean stock traded down $0.22 during mid-day trading on Friday, reaching $39.39. The company had a trading volume of 1,492,764 shares, compared to its average volume of 2,914,478. DigitalOcean has a 52 week low of $25.45 and a 52 week high of $47.02. The company has a 50 day moving average of $35.89 and a 200-day moving average of $31.51. The firm has a market cap of $3.59 billion, a price-to-earnings ratio of 30.30, a PEG ratio of 2.25 and a beta of 1.76.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 EPS 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 the consensus estimate of $216.62 million. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. The firm's revenue for the quarter was up 13.6% compared to the same quarter last year. During the same period last year, the firm earned $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. On average, analysts predict that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Bratin Saha sold 13,010 shares of the business's 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 of the company's stock, valued at $8,587,849.55. The trade was a 4.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.96% of the company's stock.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of DigitalOcean in the second quarter valued at $22,633,000. Fuller & Thaler Asset Management Inc. increased its holdings in shares of DigitalOcean by 28.6% in the first quarter. Fuller & Thaler Asset Management Inc. now owns 1,987,177 shares of the company's stock valued at $66,352,000 after purchasing an additional 441,535 shares during the last quarter. Lazard Asset Management LLC increased its holdings in shares of DigitalOcean by 34.5% in the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company's stock valued at $47,430,000 after purchasing an additional 426,264 shares during the last quarter. Frontier Capital Management Co. LLC grew its stake in shares of DigitalOcean by 75.9% in the second quarter. Frontier Capital Management Co. LLC now owns 706,227 shares of the company's stock valued at $20,170,000 after acquiring an additional 304,805 shares in the last quarter. Finally, Penserra Capital Management LLC acquired a new position in shares of DigitalOcean in the second quarter valued at about $6,580,000. 49.77% of the stock is owned by institutional investors.

DigitalOcean Company Profile

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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