DigitalOcean (NYSE:DOCN) Lowered to “Hold” Rating by Wall Street Zen

Wall Street Zen downgraded shares of DigitalOcean (NYSE:DOCN) from a buy rating to a hold rating in a research report report published on Sunday.

Other research analysts have also issued research reports about the company. Cantor Fitzgerald set a $47.00 price objective on DigitalOcean and gave the stock a “neutral” rating in a report on Thursday, November 6th. Oppenheimer assumed coverage on shares of DigitalOcean in a research report on Monday, November 10th. They set an “outperform” rating and a $60.00 target price for the company. UBS Group increased their price target on shares of DigitalOcean from $40.00 to $48.00 and gave the stock a “neutral” rating in a report on Thursday, November 6th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Finally, Barclays upped their target price on shares of DigitalOcean from $40.00 to $49.00 and gave the stock an “overweight” rating in a research report on Thursday, November 6th. Eight research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, DigitalOcean presently has an average rating of “Moderate Buy” and a consensus price target of $48.75.

DigitalOcean Price Performance

DOCN opened at $48.95 on Friday. The firm has a market capitalization of $4.48 billion, a P/E ratio of 19.74, a price-to-earnings-growth ratio of 7.03 and a beta of 1.76. DigitalOcean has a one year low of $25.45 and a one year high of $52.20. The company has a fifty day moving average price of $46.01 and a 200-day moving average price of $37.50.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.31 by $0.23. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The company had revenue of $229.63 million for the quarter, compared to the consensus estimate of $226.55 million. During the same quarter last year, the business posted $0.52 earnings per share. The firm’s revenue was up 15.9% compared to the same quarter last year. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS and its FY 2025 guidance at 2.000-2.050 EPS. On average, analysts expect that DigitalOcean will post 1.01 earnings per share for the current year.

Institutional Trading of DigitalOcean

Several institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP raised its position in DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares during the last quarter. CX Institutional raised its holdings in shares of DigitalOcean by 780.5% during the second quarter. CX Institutional now owns 1,039 shares of the company’s stock valued at $30,000 after acquiring an additional 921 shares in the last quarter. Wilmington Savings Fund Society FSB bought a new position in shares of DigitalOcean during the third quarter valued at approximately $37,000. Advisory Services Network LLC purchased a new stake in DigitalOcean in the third quarter worth $54,000. Finally, Farther Finance Advisors LLC increased its position in DigitalOcean by 42.3% during the 2nd quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock valued at $55,000 after purchasing an additional 572 shares during the period. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud infrastructure provider that focuses on simplicity, performance and developer experience. The company offers a range of cloud services designed to help software developers, startups and small- to medium-sized businesses deploy, manage and scale applications. Its flagship offering, Droplets, provides virtual private servers that can be configured with various CPU, memory and storage options. In addition to compute instances, DigitalOcean’s platform includes managed Kubernetes, scalable object and block storage, managed databases, load balancers and networking capabilities such as Virtual Private Cloud (VPC) and Floating IPs.

Founded in 2011 and headquartered in New York City, DigitalOcean was created with the goal of making cloud computing more accessible to individual developers and smaller teams.