DigitalOcean (NYSE:DOCN) Price Target Raised to $48.00 at UBS Group

DigitalOcean (NYSE:DOCN) had its price objective upped by UBS Group from $40.00 to $48.00 in a research report sent to investors on Thursday morning,Benzinga reports. The brokerage currently has a neutral rating on the stock.

A number of other equities research analysts have also recently weighed in on the stock. Canaccord Genuity Group lifted their price target 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. Stifel Nicolaus set a $36.00 target price on DigitalOcean in a research report on Tuesday, August 5th. Morgan Stanley raised their price target on DigitalOcean from $41.00 to $44.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 6th. Wall Street Zen upgraded DigitalOcean from a “hold” rating to a “buy” rating in a report on Saturday, November 1st. Finally, Bank of America raised DigitalOcean from an “underperform” rating to a “buy” rating and increased their target price for the stock from $34.00 to $60.00 in a research note on Thursday. Seven research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $47.73.

DigitalOcean Trading Up 5.1%

DOCN traded up $2.40 during midday trading on Thursday, hitting $49.48. 3,660,506 shares of the company traded hands, compared to its average volume of 3,508,010. The business has a 50 day simple moving average of $37.69 and a two-hundred day simple moving average of $32.35. DigitalOcean has a 52-week low of $25.45 and a 52-week high of $49.62. The company has a market capitalization of $4.53 billion, a price-to-earnings ratio of 30.77, a PEG ratio of 2.68 and a beta of 1.78.

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

Insider Activity

In related news, insider Bratin Saha sold 13,010 shares of the 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 transaction, the insider directly owned 269,465 shares of the company’s stock, valued at $8,587,849.55. This trade represents a 4.61% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in shares of DigitalOcean by 5.0% in the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after acquiring an additional 442,617 shares during the period. Fuller & Thaler Asset Management Inc. increased its position 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 buying an additional 441,535 shares in the last quarter. Lazard Asset Management LLC raised its stake in shares of DigitalOcean by 34.5% during the 2nd 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 last quarter. Van Berkom & Associates Inc. raised its stake in shares of DigitalOcean by 33.1% during the 3rd quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock worth $53,460,000 after buying an additional 389,161 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of DigitalOcean in the 2nd quarter worth about $22,633,000. 49.77% of the stock is owned by institutional investors and hedge funds.

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).