Bank of America Upgrades DigitalOcean (NYSE:DOCN) to “Buy”

DigitalOcean (NYSE:DOCN) was upgraded by equities research analysts at Bank of America from an “underperform” rating to a “buy” rating in a note issued to investors on Thursday, MarketBeat.com reports. The firm currently has a $60.00 target price on the stock, up from their previous target price of $34.00. Bank of America‘s price objective would suggest a potential upside of 21.25% from the stock’s current price.

DOCN has been the topic of a number of other research reports. UBS Group began coverage on shares of DigitalOcean in a research note on Tuesday, October 7th. They issued a “neutral” rating and a $40.00 price target on the stock. Morgan Stanley boosted their price objective on shares of DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a research report on Wednesday, August 6th. Canaccord Genuity Group upped their target price on shares of DigitalOcean from $49.00 to $55.00 and gave the stock a “buy” rating in a research note on Thursday, October 9th. Barclays lifted their price target on DigitalOcean from $38.00 to $40.00 and gave the company an “overweight” rating in a research note on Wednesday, August 6th. Finally, Stifel Nicolaus set a $36.00 price objective on DigitalOcean in a research report on Tuesday, August 5th. Seven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $47.73.

DigitalOcean Trading Up 5.1%

Shares of DOCN stock traded up $2.40 on Thursday, hitting $49.48. The stock had a trading volume of 3,660,506 shares, compared to its average volume of 3,508,010. DigitalOcean has a twelve month low of $25.45 and a twelve month high of $49.62. The company has a fifty day moving average price of $38.03 and a two-hundred day moving average price of $32.52. The firm has a market cap of $4.53 billion, a P/E ratio of 19.95, a PEG ratio of 2.68 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, topping 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 business had revenue of $229.63 million for the quarter, compared to the consensus estimate of $226.55 million. During the same quarter last year, the business posted $0.52 EPS. The firm’s 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. FY 2025 guidance at 2.000-2.050 EPS. On average, analysts expect that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In other news, insider Bratin Saha sold 13,010 shares of the business’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 transaction, the insider directly owned 269,465 shares in the company, valued at $8,587,849.55. The trade was a 4.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.96% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors have recently bought and sold shares of DOCN. Norges Bank acquired a new stake in shares of DigitalOcean in the second quarter valued at approximately $22,633,000. Vanguard Group Inc. lifted 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 purchasing an additional 442,617 shares during the last quarter. Fuller & Thaler Asset Management Inc. lifted its holdings in 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 purchasing an additional 441,535 shares during the last quarter. Lazard Asset Management LLC increased its holdings in shares of DigitalOcean by 34.5% in the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after purchasing an additional 426,264 shares during the last quarter. Finally, Van Berkom & Associates Inc. grew its stake in DigitalOcean by 33.1% in the 3rd quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock valued at $53,460,000 after buying an additional 389,161 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

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).