DigitalOcean Holdings, Inc. (NASDAQ:DOCN) Given Consensus Recommendation of “Moderate Buy” by Analysts

DigitalOcean Holdings, Inc. (NASDAQ:DOCN) has received a consensus recommendation of “Moderate Buy” from the ten brokerages that are covering the firm, MarketBeat Ratings reports. Five analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $37.67.

DOCN has been the subject of several recent research reports. Barclays lowered their price target on shares of DigitalOcean from $43.00 to $38.00 and set an “overweight” rating for the company in a research report on Friday, August 9th. Piper Sandler lowered their price target on shares of DigitalOcean from $38.00 to $34.00 and set a “neutral” rating for the company in a research report on Monday, July 15th. Stifel Nicolaus increased their target price on shares of DigitalOcean from $32.00 to $35.00 and gave the company a “hold” rating in a research report on Friday, August 9th. Finally, UBS Group decreased their target price on shares of DigitalOcean from $40.00 to $34.00 and set a “neutral” rating for the company in a research report on Friday, August 9th.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors and hedge funds have recently bought and sold shares of DOCN. FinTrust Capital Advisors LLC acquired a new stake in DigitalOcean in the 1st quarter valued at about $36,000. Covestor Ltd lifted its holdings in DigitalOcean by 571.4% in the 1st quarter. Covestor Ltd now owns 1,947 shares of the company’s stock valued at $74,000 after acquiring an additional 1,657 shares during the last quarter. Scarborough Advisors LLC purchased a new stake in DigitalOcean during the fourth quarter valued at about $98,000. Ables Iannone Moore & Associates Inc. purchased a new stake in DigitalOcean during the fourth quarter valued at about $102,000. Finally, Assetmark Inc. lifted its stake in DigitalOcean by 16.7% during the fourth quarter. Assetmark Inc. now owns 2,809 shares of the company’s stock valued at $103,000 after buying an additional 403 shares in the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

DigitalOcean Stock Performance

Shares of NASDAQ:DOCN opened at $41.89 on Friday. The stock has a market capitalization of $3.86 billion, a price-to-earnings ratio of 79.04, a price-to-earnings-growth ratio of 3.26 and a beta of 1.83. DigitalOcean has a 1-year low of $19.39 and a 1-year high of $43.88. The company’s fifty day moving average is $35.97 and its two-hundred day moving average is $35.96.

DigitalOcean (NASDAQ:DOCN) last released its quarterly earnings results on Thursday, August 8th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.39 by $0.09. The business had revenue of $192.00 million during the quarter, compared to analyst estimates of $188.63 million. DigitalOcean had a net margin of 9.30% and a negative return on equity of 31.71%. The company’s quarterly revenue was up 13.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.11 earnings per share. Sell-side analysts expect that DigitalOcean will post 0.86 EPS for the current fiscal 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).