Bank of America Issues Positive Forecast for DigitalOcean (NYSE:DOCN) Stock Price

DigitalOcean (NYSE:DOCN) had its price target raised by Bank of America from $60.00 to $72.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm currently has a “buy” rating on the stock. Bank of America‘s price objective would suggest a potential upside of 18.11% from the stock’s current price.

Several other brokerages have also recently weighed in on DOCN. Canaccord Genuity Group raised their target price on shares of DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a report on Thursday, November 6th. Barclays raised their price objective on shares of DigitalOcean from $49.00 to $63.00 and gave the company an “overweight” rating in a research report on Monday, January 12th. Oppenheimer started coverage on DigitalOcean in a research report on Monday, November 10th. They set an “outperform” rating and a $60.00 target price on the stock. Wall Street Zen downgraded shares of DigitalOcean from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Finally, Cantor Fitzgerald set a $47.00 target price on shares of DigitalOcean and gave the company a “neutral” rating in a report on Thursday, November 6th. Seven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $50.50.

DigitalOcean Stock Up 3.4%

Shares of DOCN stock traded up $2.02 during trading hours on Tuesday, hitting $60.96. 2,919,624 shares of the company’s stock were exchanged, compared to its average volume of 2,439,715. DigitalOcean has a fifty-two week low of $25.45 and a fifty-two week high of $64.09. The firm has a 50 day moving average of $48.92 and a two-hundred day moving average of $40.29. The firm has a market cap of $5.58 billion, a P/E ratio of 24.60, a P/E/G ratio of 7.70 and a beta of 1.76.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results 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 firm had revenue of $229.63 million for the quarter, compared to analyst estimates of $226.55 million. During the same period in the previous year, the company posted $0.52 earnings per share. The business’s revenue was up 15.9% on a year-over-year basis. 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, equities analysts forecast that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors have recently modified their holdings of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of DigitalOcean by 5.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock worth $11,342,000 after purchasing an additional 16,162 shares in the last quarter. Intech Investment Management LLC boosted its holdings in shares of DigitalOcean by 59.2% during the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after buying an additional 14,655 shares during the period. Farther Finance Advisors LLC grew its holdings in DigitalOcean by 42.3% in the 2nd quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock valued at $55,000 after buying an additional 572 shares in the last quarter. CX Institutional raised its position in shares of DigitalOcean by 780.5% in the second quarter. CX Institutional now owns 1,039 shares of the company’s stock valued at $30,000 after buying an additional 921 shares in the last quarter. Finally, State of Alaska Department of Revenue lifted its position in DigitalOcean by 5.9% during the second quarter. State of Alaska Department of Revenue now owns 37,368 shares of the company’s stock worth $1,067,000 after purchasing an additional 2,086 shares during the period. Institutional investors own 49.77% of the company’s stock.

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.