DigitalOcean (NYSE:DOCN) Stock Price Expected to Rise, Bank of America Analyst Says

DigitalOcean (NYSE:DOCN) had its price target increased by equities researchers at Bank of America from $60.00 to $72.00 in a report issued on Tuesday,Benzinga reports. The firm currently has a “buy” rating on the stock. Bank of America‘s target price would suggest a potential upside of 19.53% from the company’s current price.

A number of other brokerages have also issued reports on DOCN. Barclays boosted their price target on shares of DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a research note on Monday, January 12th. Piper Sandler increased their target price on shares of DigitalOcean from $47.00 to $50.00 and gave the stock a “neutral” rating in a report on Monday, January 5th. Canaccord Genuity Group raised their price target on shares of DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DigitalOcean in a research report on Monday, December 29th. Finally, Cantor Fitzgerald set a $47.00 price objective on DigitalOcean and gave the company a “neutral” 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, DigitalOcean has a consensus rating of “Moderate Buy” and a consensus target price of $50.50.

DigitalOcean Stock Performance

NYSE:DOCN opened at $60.24 on Tuesday. DigitalOcean has a fifty-two week low of $25.45 and a fifty-two week high of $64.09. The company has a 50 day moving average price of $49.57 and a 200 day moving average price of $40.65. The stock has a market capitalization of $5.51 billion, a P/E ratio of 24.29, a PEG ratio of 8.65 and a beta of 1.76.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Wednesday, November 5th. The company reported $0.54 earnings per share (EPS) for the quarter, beating 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 the consensus estimate of $226.55 million. During the same quarter in the previous year, the business earned $0.52 EPS. The company’s quarterly 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. Research analysts forecast that DigitalOcean will post 1.01 earnings per share for the current fiscal year.

Institutional Trading of DigitalOcean

A number of hedge funds and other institutional investors have recently bought and sold shares of DOCN. Universal Beteiligungs und Servicegesellschaft mbH boosted its position in shares of DigitalOcean by 141.6% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 63,171 shares of the company’s stock worth $3,045,000 after acquiring an additional 37,028 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in DigitalOcean by 17.7% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 23,412 shares of the company’s stock worth $1,127,000 after purchasing an additional 3,519 shares during the last quarter. Belpointe Asset Management LLC boosted its holdings in DigitalOcean by 155.0% in the fourth quarter. Belpointe Asset Management LLC now owns 34,527 shares of the company’s stock valued at $1,661,000 after purchasing an additional 20,985 shares in the last quarter. Fortis Capital Advisors LLC purchased a new position in DigitalOcean in the fourth quarter valued at approximately $1,020,000. Finally, Bayforest Capital Ltd raised its holdings in DigitalOcean by 77,914.3% during the fourth quarter. Bayforest Capital Ltd now owns 5,461 shares of the company’s stock worth $263,000 after purchasing an additional 5,454 shares in the last quarter. 49.77% of the stock is currently owned by institutional investors and hedge funds.

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.