DigitalOcean (NYSE:DOCN) Upgraded by Bank of America to “Buy” Rating

by · The Markets Daily

Bank of America upgraded shares of DigitalOcean (NYSE:DOCN – Free Report) from an underperform rating to a buy rating in a research report released on Thursday morning, Marketbeat.com reports. They currently have $60.00 price objective on the stock, up from their prior price objective of $34.00.

DOCN has been the subject of a number of other reports. UBS Group started coverage on DigitalOcean in a report on Tuesday, October 7th. They set a “neutral” rating and a $40.00 price target for the company. Stifel Nicolaus set a $36.00 target price on DigitalOcean in a research note on Tuesday, August 5th. Canaccord Genuity Group increased their price target on shares of DigitalOcean from $49.00 to $55.00 and gave the company a “buy” rating in a research note on Thursday, October 9th. Weiss Ratings reissued a “hold (c)” rating on shares of DigitalOcean in a report on Wednesday, October 8th. Finally, Barclays increased their price objective on DigitalOcean from $38.00 to $40.00 and gave the company an “overweight” rating in a report on Wednesday, August 6th. Seven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $47.73.

Check Out Our Latest Stock Analysis on DigitalOcean

DigitalOcean Trading Up 5.1%

NYSE:DOCN traded up $2.40 during mid-day trading on Thursday, hitting $49.48. The stock had a trading volume of 3,660,506 shares, compared to its average volume of 2,038,990. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $49.62. The company has a market capitalization of $4.50 billion, a PE ratio of 19.95, a PEG ratio of 2.60 and a beta of 1.78. The stock has a 50-day simple moving average of $37.69 and a two-hundred day simple moving average of $32.35.

DigitalOcean (NYSE:DOCN – Get Free Report) last announced its quarterly earnings data on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, beating analysts’ consensus estimates of $0.31 by $0.23. The company 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% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.52 EPS. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS. FY 2025 guidance at 2.000-2.050 EPS. Sell-side analysts predict that DigitalOcean will post 1.01 EPS for the current fiscal year.

Insider Activity

In related news, insider Bratin Saha sold 13,010 shares of the stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total transaction of $414,628.70. Following the sale, the insider owned 269,465 shares of the company’s stock, valued at $8,587,849.55. This trade represents a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.96% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors and hedge funds have recently modified their holdings of DOCN. Allspring Global Investments Holdings LLC lifted its stake in shares of DigitalOcean by 25.5% during the second quarter. Allspring Global Investments Holdings LLC now owns 215,483 shares of the company’s stock worth $6,038,000 after purchasing an additional 43,732 shares in the last quarter. Fuller & Thaler Asset Management Inc. raised its holdings in shares of DigitalOcean by 28.6% during the 1st 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 during the period. Nuveen LLC acquired a new position in DigitalOcean during the 1st quarter worth approximately $5,737,000. Concurrent Investment Advisors LLC purchased a new position in DigitalOcean in the 1st quarter worth approximately $265,000. Finally, Trexquant Investment LP acquired a new stake in DigitalOcean in the first quarter valued at approximately $1,041,000. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Company Profile

(Get Free Report)

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).

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