Barclays Raises DigitalOcean (NYSE:DOCN) Price Target to $49.00

DigitalOcean (NYSE:DOCN) had its price objective hoisted by research analysts at Barclays from $40.00 to $49.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Barclays‘s target price suggests a potential downside of 0.98% from the stock’s previous close.

Several other brokerages also recently commented on DOCN. Wall Street Zen raised DigitalOcean from a “hold” rating to a “buy” rating in a research note on Saturday, November 1st. Bank of America upgraded shares of DigitalOcean from an “underperform” rating to a “buy” rating and upped their price objective for the stock from $34.00 to $60.00 in a research report on Thursday. UBS Group started coverage on shares of DigitalOcean in a research report on Tuesday, October 7th. They issued a “neutral” rating and a $40.00 target price on the stock. Stifel Nicolaus set a $36.00 target price on shares of DigitalOcean in a research note on Tuesday, August 5th. Finally, Canaccord Genuity Group increased their price target on DigitalOcean from $49.00 to $55.00 and gave the company a “buy” rating in a research note on Thursday, October 9th. Seven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, DigitalOcean currently has a consensus rating of “Moderate Buy” and an average target price of $47.73.

DigitalOcean Stock Up 5.1%

Shares of NYSE:DOCN opened at $49.48 on Thursday. DigitalOcean has a 12-month low of $25.45 and a 12-month high of $49.62. The company’s 50 day moving average price is $38.03 and its two-hundred day moving average price is $32.52. The firm has a market cap of $4.53 billion, a PE ratio of 19.95, a PEG ratio of 2.68 and a beta of 1.78.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Wednesday, November 5th. The company reported $0.54 EPS for the quarter, beating analysts’ consensus estimates of $0.31 by $0.23. DigitalOcean had a negative return on equity of 92.51% and a net margin of 29.15%.The business had revenue of $229.63 million during the quarter, compared to the consensus estimate of $226.55 million. During the same quarter in the previous year, the firm earned $0.52 earnings per share. DigitalOcean’s revenue for the quarter was up 15.9% compared to the same quarter last year. DigitalOcean has set its Q4 2025 guidance at 0.350-0.400 EPS. FY 2025 guidance at 2.000-2.050 EPS. On average, research analysts expect that DigitalOcean will post 1.01 EPS for the current year.

Insider Transactions at DigitalOcean

In other DigitalOcean 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 transaction, the insider directly owned 269,465 shares of the company’s stock, valued at approximately $8,587,849.55. The trade was a 4.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.96% of the stock is currently owned by corporate insiders.

Institutional Trading of DigitalOcean

Institutional investors have recently added to or reduced their stakes in the stock. CX Institutional increased its position in DigitalOcean by 780.5% during 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. GAMMA Investing LLC boosted its stake in shares of DigitalOcean by 336.1% in the 1st quarter. GAMMA Investing LLC now owns 1,064 shares of the company’s stock valued at $36,000 after purchasing an additional 820 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in shares of DigitalOcean during the third quarter worth $37,000. SVB Wealth LLC acquired a new stake in shares of DigitalOcean during the first quarter worth $48,000. Finally, Farther Finance Advisors LLC raised its stake in DigitalOcean by 42.3% during the second quarter. Farther Finance Advisors LLC now owns 1,924 shares of the company’s stock worth $55,000 after buying an additional 572 shares during the last quarter. 49.77% of the stock is currently owned by institutional investors.

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).