DigitalOcean (NYSE:DOCN) Shares Gap Up After Analyst Upgrade

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) gapped up prior to trading on Tuesday after Bank of America raised their price target on the stock from $60.00 to $72.00. The stock had previously closed at $58.94, but opened at $63.09. Bank of America currently has a buy rating on the stock. DigitalOcean shares last traded at $62.4420, with a volume of 1,731,511 shares changing hands.

Other research analysts have also issued research reports about the company. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Piper Sandler upped their target price on DigitalOcean from $47.00 to $50.00 and gave the company a “neutral” rating in a research note on Monday, January 5th. Barclays increased their target price on DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a research report on Monday, January 12th. UBS Group lifted their price target on DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Finally, Canaccord Genuity Group upped their price objective on shares of DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, November 6th. Seven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $50.50.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently modified their holdings of DOCN. Norges Bank acquired a new position in shares of DigitalOcean during the 2nd quarter valued at $22,633,000. Alyeska Investment Group L.P. purchased a new position in DigitalOcean in the third quarter valued at about $21,808,000. Vanguard Group Inc. raised its position in DigitalOcean by 5.0% in the third quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after purchasing an additional 442,617 shares during the period. Danske Bank A S acquired a new position in shares of DigitalOcean during the third quarter worth about $14,582,000. Finally, Lazard Asset Management LLC boosted its position 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 worth $47,430,000 after buying an additional 426,264 shares during the period. 49.77% of the stock is owned by institutional investors and hedge funds.

DigitalOcean Stock Down 0.0%

The firm has a market cap of $5.51 billion, a price-to-earnings ratio of 24.29, a price-to-earnings-growth ratio of 8.65 and a beta of 1.76. The business has a 50 day moving average price of $49.57 and a 200-day moving average price of $40.65.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, topping the consensus estimate 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 EPS. DigitalOcean’s revenue for the quarter 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. Research analysts anticipate that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current fiscal year.

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.