DigitalOcean (NYSE:DOCN) Hits New 52-Week High – Still a Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares reached a new 52-week high during trading on Monday . The company traded as high as $54.86 and last traded at $54.7230, with a volume of 432372 shares traded. The stock had previously closed at $53.20.

Analyst Ratings Changes

DOCN has been the topic of a number of analyst reports. Bank of America raised DigitalOcean from an “underperform” rating to a “buy” rating and increased their price target for the company from $34.00 to $60.00 in a research note on Thursday, November 6th. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 29th. Canaccord Genuity Group increased their target price on DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a research note on Thursday, November 6th. Barclays raised their target price on DigitalOcean from $49.00 to $63.00 and gave the stock an “overweight” rating in a report on Monday. Finally, Oppenheimer started coverage on DigitalOcean in a research note on Monday, November 10th. They issued an “outperform” rating and a $60.00 price target for the company. Eight analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat.com, DigitalOcean currently has an average rating of “Moderate Buy” and a consensus price target of $49.92.

DigitalOcean Trading Up 3.9%

The firm has a market capitalization of $5.06 billion, a P/E ratio of 22.30, a PEG ratio of 7.64 and a beta of 1.76. The business has a 50 day moving average of $47.32 and a 200-day moving average of $38.38.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Wednesday, November 5th. The company reported $0.54 earnings per share for the quarter, beating 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 during the quarter, compared to analysts’ expectations of $226.55 million. During the same quarter in the prior year, the company earned $0.52 earnings per share. The business’s quarterly 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 and its FY 2025 guidance at 2.000-2.050 EPS. On average, analysts anticipate that DigitalOcean Holdings, Inc. will post 1.01 EPS for the current fiscal year.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP raised its stake in DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after acquiring an additional 255 shares during the period. CX Institutional boosted 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 purchasing an additional 921 shares during the period. Wilmington Savings Fund Society FSB bought a new stake in DigitalOcean in the 3rd quarter valued at about $37,000. GAMMA Investing LLC grew its position in shares of DigitalOcean by 33.8% during the 4th quarter. GAMMA Investing LLC now owns 1,581 shares of the company’s stock worth $76,000 after purchasing an additional 399 shares in the last quarter. Finally, Advisory Services Network LLC bought a new position in shares of DigitalOcean during the third quarter worth approximately $54,000. 49.77% of the stock is owned by institutional investors.

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.