DigitalOcean (NYSE:DOCN) Upgraded to “Strong-Buy” at Robert W. Baird

Robert W. Baird upgraded shares of DigitalOcean (NYSE:DOCN) to a strong-buy rating in a research note issued to investors on Tuesday morning,Zacks.com reports.

A number of other brokerages have also issued reports on DOCN. The Goldman Sachs Group upped their price objective on shares of DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Bank of America lifted their target price on shares of DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a research note on Thursday, April 9th. UBS Group decreased their target price on shares of DigitalOcean from $175.00 to $155.00 and set a “neutral” rating on the stock in a report on Wednesday, July 8th. KeyCorp began coverage on shares of DigitalOcean in a research note on Tuesday, June 2nd. They issued an “overweight” rating and a $200.00 price target for the company. Finally, Barclays cut their price target on shares of DigitalOcean from $184.00 to $160.00 and set an “overweight” rating for the company in a report on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $151.93.

DigitalOcean Price Performance

DOCN stock opened at $142.96 on Tuesday. DigitalOcean has a 1 year low of $25.56 and a 1 year high of $187.50. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. The firm has a market capitalization of $14.92 billion, a PE ratio of 62.43 and a beta of 1.57. The business has a 50 day simple moving average of $152.37 and a 200-day simple moving average of $103.16.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The firm had revenue of $257.90 million for the quarter, compared to the consensus estimate of $249.76 million. During the same quarter last year, the business posted $0.56 earnings per share. The firm’s revenue was up 22.4% compared to the same quarter last year. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Equities research analysts anticipate that DigitalOcean will post 0.56 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the sale, the director owned 24,323 shares in the company, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the completion of the sale, the chief financial officer directly owned 538,414 shares in the company, valued at approximately $91,568,068.98. The trade was a 1.82% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 39,338 shares of company stock worth $6,191,576 over the last three months. Insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently modified their holdings of the company. Principal Financial Group Inc. lifted its position in shares of DigitalOcean by 155.3% during the first quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after purchasing an additional 674,231 shares in the last quarter. Alyeska Investment Group L.P. acquired a new position in shares of DigitalOcean in the third quarter valued at approximately $21,808,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of DigitalOcean by 90.9% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock valued at $57,496,000 after purchasing an additional 568,823 shares in the last quarter. Franklin Resources Inc. increased its stake in DigitalOcean by 784.2% during the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock worth $23,786,000 after buying an additional 438,411 shares during the period. Finally, Danske Bank A S purchased a new stake in DigitalOcean during the 3rd quarter worth approximately $14,582,000. 49.77% of the stock is owned by institutional investors and hedge funds.

About DigitalOcean

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.