DigitalOcean (NYSE:DOCN) Hits New 52-Week High – Time to Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) hit a new 52-week high during trading on Tuesday . The stock traded as high as $52.20 and last traded at $52.5710, with a volume of 289538 shares trading hands. The stock had previously closed at $50.61.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on DOCN shares. Wall Street Zen lowered DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday. Cantor Fitzgerald set a $47.00 target price on shares of DigitalOcean and gave the company a “neutral” rating in a research note on Thursday, November 6th. Oppenheimer started coverage on shares of DigitalOcean in a report on Monday, November 10th. They set an “outperform” rating and a $60.00 target price on the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Finally, UBS Group lifted their price objective on shares of DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a research report on Thursday, November 6th. Eight 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 $48.85.

DigitalOcean Trading Up 4.6%

The business has a 50 day moving average of $46.21 and a two-hundred day moving average of $37.66. The firm has a market cap of $4.84 billion, a P/E ratio of 21.38, a PEG ratio of 7.03 and a beta of 1.76.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, beating the consensus estimate of $0.31 by $0.23. The firm had revenue of $229.63 million for the quarter, compared to the consensus estimate of $226.55 million. DigitalOcean had a net margin of 29.15% and a negative return on equity of 92.51%. The company’s quarterly revenue was up 15.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.52 earnings per share. 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, sell-side analysts predict that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current year.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently made changes to their positions in DOCN. Allworth Financial LP increased its stake in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the period. CX Institutional grew its holdings in DigitalOcean by 780.5% in the 2nd 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. Wilmington Savings Fund Society FSB bought a new position in DigitalOcean during the 3rd quarter worth $37,000. Advisory Services Network LLC acquired a new stake in shares of DigitalOcean during the third quarter worth $54,000. Finally, Farther Finance Advisors LLC lifted its holdings in shares of DigitalOcean by 42.3% during the second quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock worth $55,000 after buying an additional 572 shares in the last quarter. Institutional investors own 49.77% of the company’s stock.

About DigitalOcean

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.