Oppenheimer Begins Coverage on DigitalOcean (NYSE:DOCN)

Oppenheimer began coverage on shares of DigitalOcean (NYSE:DOCN) in a report issued on Monday. The firm set an “outperform” rating and a $60.00 price target on the stock. Oppenheimer’s price target points to a potential upside of 18.36% from the stock’s current price.

A number of other equities research analysts also recently weighed in on DOCN. Morgan Stanley lifted their target price on DigitalOcean from $41.00 to $44.00 and gave the stock an “overweight” rating in a report on Wednesday, August 6th. Wall Street Zen cut shares of DigitalOcean from a “buy” rating to a “hold” rating in a report on Sunday. 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 report on Thursday. Barclays raised their target price on DigitalOcean from $40.00 to $49.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Bank of America raised DigitalOcean from an “underperform” rating to a “buy” rating and boosted their target price for the company from $34.00 to $60.00 in a research report on Thursday. Eight investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $48.75.

DigitalOcean Trading Up 2.4%

DOCN stock traded up $1.21 during trading on Monday, hitting $50.69. The company had a trading volume of 882,160 shares, compared to its average volume of 2,032,726. The business has a 50-day moving average of $38.03 and a 200-day moving average of $32.59. DigitalOcean has a one year low of $25.45 and a one year high of $51.69. The stock has a market cap of $4.64 billion, a PE ratio of 20.40, a PEG ratio of 6.30 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last posted 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 analyst estimates 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 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. Research analysts forecast that DigitalOcean will post 1.01 EPS for the current year.

Insider Transactions at DigitalOcean

In other DigitalOcean news, insider Bratin Saha sold 13,010 shares of the company’s stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $31.87, for a total transaction of $414,628.70. Following the sale, the insider directly owned 269,465 shares of the company’s stock, valued at $8,587,849.55. This represents a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Hillsdale Investment Management Inc. lifted its position in shares of DigitalOcean by 158.9% during the third quarter. Hillsdale Investment Management Inc. now owns 199,600 shares of the company’s stock worth $6,818,000 after acquiring an additional 122,500 shares in the last quarter. GSA Capital Partners LLP purchased a new stake in DigitalOcean during the 3rd quarter worth about $362,000. Vanguard Group Inc. grew its holdings in DigitalOcean by 5.0% during the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after buying an additional 442,617 shares in the last quarter. PNC Financial Services Group Inc. increased its position in shares of DigitalOcean by 17.2% during the third quarter. PNC Financial Services Group Inc. now owns 12,007 shares of the company’s stock valued at $410,000 after buying an additional 1,765 shares during the period. Finally, Public Sector Pension Investment Board lifted its stake in DigitalOcean by 24.4% in the 3rd quarter. Public Sector Pension Investment Board now owns 266,308 shares of the company’s stock worth $9,097,000 after purchasing an additional 52,148 shares in the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

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).