Brokerages Set DigitalOcean Holdings, Inc. (NYSE:DOCN) Price Target at $40.63

DigitalOcean Holdings, Inc. (NYSE:DOCN) has received an average recommendation of “Moderate Buy” from the nine brokerages that are presently covering the company, MarketBeat Ratings reports. Four research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $40.63.

A number of analysts have recently weighed in on the stock. Canaccord Genuity Group boosted their price objective on shares of DigitalOcean from $42.00 to $48.00 and gave the stock a “buy” rating in a research note on Friday, October 4th. Stifel Nicolaus boosted their target price on shares of DigitalOcean from $32.00 to $35.00 and gave the stock a “hold” rating in a research report on Friday, August 9th. UBS Group lowered their price target on DigitalOcean from $40.00 to $34.00 and set a “neutral” rating on the stock in a research report on Friday, August 9th. Piper Sandler cut their price objective on DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a research report on Monday, July 15th. Finally, Barclays raised their target price on DigitalOcean from $38.00 to $48.00 and gave the company an “overweight” rating in a report on Friday, October 11th.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors and hedge funds have recently added to or reduced their stakes in DOCN. Vanguard Group Inc. increased its holdings in DigitalOcean by 11.5% in the 1st quarter. Vanguard Group Inc. now owns 6,728,563 shares of the company’s stock valued at $256,897,000 after buying an additional 696,426 shares during the period. University of Texas Texas AM Investment Management Co. bought a new stake in DigitalOcean in the second quarter valued at about $11,712,000. Bank of New York Mellon Corp raised its position in DigitalOcean by 66.9% in the second quarter. Bank of New York Mellon Corp now owns 766,043 shares of the company’s stock worth $26,620,000 after purchasing an additional 307,162 shares in the last quarter. Principal Financial Group Inc. boosted its holdings in DigitalOcean by 27.9% during the second quarter. Principal Financial Group Inc. now owns 1,178,848 shares of the company’s stock valued at $40,965,000 after purchasing an additional 257,229 shares in the last quarter. Finally, Renaissance Technologies LLC grew its stake in shares of DigitalOcean by 152.6% in the 2nd quarter. Renaissance Technologies LLC now owns 375,600 shares of the company’s stock valued at $13,052,000 after purchasing an additional 226,900 shares during the period. 49.77% of the stock is currently owned by institutional investors.

DigitalOcean Price Performance

NYSE DOCN opened at $41.22 on Tuesday. DigitalOcean has a fifty-two week low of $19.39 and a fifty-two week high of $44.80. The stock’s 50-day moving average is $39.96 and its two-hundred day moving average is $36.37. The firm has a market cap of $3.75 billion, a P/E ratio of 77.77, a price-to-earnings-growth ratio of 3.38 and a beta of 1.83.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Thursday, August 8th. The company reported $0.48 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.09. The business had revenue of $192.00 million for the quarter, compared to the consensus estimate of $188.63 million. DigitalOcean had a negative return on equity of 31.71% and a net margin of 9.30%. The firm’s revenue was up 13.1% compared to the same quarter last year. During the same period last year, the business earned $0.11 EPS. On average, equities analysts expect that DigitalOcean will post 0.86 EPS for the current year.

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).