DigitalOcean (NYSE:DOCN) Now Covered by UBS Group

Investment analysts at UBS Group began coverage on shares of DigitalOcean (NYSE:DOCN) in a research note issued on Tuesday, Marketbeat reports. The firm set a “neutral” rating and a $40.00 price target on the stock. UBS Group’s price target indicates a potential upside of 2.86% from the stock’s previous close.

DOCN has been the topic of a number of other reports. Morgan Stanley upped their price target on DigitalOcean from $41.00 to $44.00 and gave the company an “overweight” rating in a report on Wednesday, August 6th. Weiss Ratings restated a “hold (c)” rating on shares of DigitalOcean in a report on Saturday, September 27th. Wall Street Zen downgraded shares of DigitalOcean from a “buy” rating to a “hold” rating in a research note on Friday. Canaccord Genuity Group raised their price target on DigitalOcean from $45.00 to $49.00 and gave the stock a “buy” rating in a report on Wednesday, August 6th. Finally, Stifel Nicolaus set a $36.00 price target on shares of DigitalOcean in a research report on Tuesday, August 5th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $42.18.

DigitalOcean Trading Up 1.3%

Shares of NYSE:DOCN traded up $0.50 during mid-day trading on Tuesday, hitting $38.89. 399,472 shares of the company traded hands, compared to its average volume of 1,857,458. The stock has a 50-day moving average price of $33.25 and a two-hundred day moving average price of $30.82. DigitalOcean has a 12-month low of $25.45 and a 12-month high of $47.02. The stock has a market cap of $3.54 billion, a P/E ratio of 30.04, a P/E/G ratio of 2.12 and a beta of 1.76.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.47 by $0.12. The company had revenue of $218.70 million during the quarter, compared to the consensus estimate of $216.62 million. DigitalOcean had a net margin of 15.18% and a negative return on equity of 73.19%. DigitalOcean’s revenue for the quarter was up 13.6% on a year-over-year basis. During the same period last year, the firm earned $0.48 EPS. DigitalOcean has set its FY 2025 guidance at 2.050-2.100 EPS. Q3 2025 guidance at 0.450-0.500 EPS. As a group, analysts expect that DigitalOcean will post 1.01 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In related news, insider Bratin Saha sold 13,010 shares of DigitalOcean stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $31.87, for a total transaction of $414,628.70. Following the completion of the sale, the insider owned 269,465 shares in the company, valued at approximately $8,587,849.55. This trade represents a 4.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.74% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC lifted its holdings in DigitalOcean by 14,460.2% during the 1st quarter. GAMMA Investing LLC now owns 35,527 shares of the company’s stock worth $1,186,000 after buying an additional 35,283 shares during the last quarter. Wesbanco Bank Inc. bought a new position in DigitalOcean in the 1st quarter valued at about $808,000. Farther Finance Advisors LLC boosted its holdings in shares of DigitalOcean by 135,100.0% in the first quarter. Farther Finance Advisors LLC now owns 1,352 shares of the company’s stock valued at $46,000 after acquiring an additional 1,351 shares in the last quarter. Cherry Creek Investment Advisors Inc. increased its stake in shares of DigitalOcean by 202.9% during the first quarter. Cherry Creek Investment Advisors Inc. now owns 38,603 shares of the company’s stock valued at $1,289,000 after acquiring an additional 25,858 shares during the period. Finally, BSW Wealth Partners lifted its position in DigitalOcean by 4.8% in the first quarter. BSW Wealth Partners now owns 15,256 shares of the company’s stock worth $509,000 after purchasing an additional 700 shares during the period. 49.77% of the stock is owned by institutional investors and hedge funds.

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).