DigitalOcean (NYSE:DOCN) Reaches New 12-Month High – Still a Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price reached a new 52-week high during trading on Monday . The stock traded as high as $59.42 and last traded at $58.0950, with a volume of 1361955 shares traded. The stock had previously closed at $53.61.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Oppenheimer assumed coverage on shares of DigitalOcean in a research note on Monday, November 10th. They issued an “outperform” rating and a $60.00 target price for the company. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research note on Monday, December 29th. Canaccord Genuity Group raised their target price on DigitalOcean from $55.00 to $60.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. Cantor Fitzgerald set a $47.00 price target on DigitalOcean and gave the stock a “neutral” rating in a report on Thursday, November 6th. Finally, Wall Street Zen downgraded DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. Eight research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $49.92.

DigitalOcean Stock Up 10.0%

The firm has a 50-day moving average price of $48.64 and a two-hundred day moving average price of $40.08. The firm has a market cap of $5.40 billion, a PE ratio of 23.79, a P/E/G ratio of 7.70 and a beta of 1.76.

DigitalOcean (NYSE:DOCN) last posted 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 during the quarter, compared to the consensus estimate of $226.55 million. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The firm’s revenue was up 15.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.52 EPS. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS and its FY 2025 guidance at 2.000-2.050 EPS. Research analysts forecast that DigitalOcean Holdings, Inc. will post 1.01 earnings per share for the current fiscal year.

Institutional Investors Weigh In On DigitalOcean

A number of large investors have recently made changes to their positions in DOCN. Allworth Financial LP grew its holdings 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 buying an additional 255 shares in the last quarter. CWM LLC boosted its position in shares of DigitalOcean by 1.3% during the 4th quarter. CWM LLC now owns 20,971 shares of the company’s stock valued at $1,009,000 after acquiring an additional 270 shares during the last quarter. GAMMA Investing LLC grew its holdings in shares of DigitalOcean by 33.8% in the fourth quarter. GAMMA Investing LLC now owns 1,581 shares of the company’s stock valued at $76,000 after purchasing an additional 399 shares during the period. Advisors Asset Management Inc. grew its holdings in shares of DigitalOcean by 18.0% in the second quarter. Advisors Asset Management Inc. now owns 2,630 shares of the company’s stock valued at $75,000 after purchasing an additional 401 shares during the period. Finally, Man Group plc increased its position in DigitalOcean by 0.5% during the second quarter. Man Group plc now owns 82,485 shares of the company’s stock worth $2,356,000 after purchasing an additional 420 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

DigitalOcean Company Profile

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.