DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives Average Recommendation of “Moderate Buy” from Analysts

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have received an average recommendation of “Moderate Buy” from the sixteen ratings firms that are currently covering the company, Marketbeat reports. Three analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $151.9333.

Several research firms have issued reports on DOCN. Stifel Nicolaus raised DigitalOcean from a “hold” rating to a “buy” rating and raised their target price for the stock from $135.00 to $160.00 in a research note on Tuesday, July 21st. Bank of America upped their price target on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. Barclays lowered their price target on DigitalOcean from $184.00 to $160.00 and set an “overweight” rating for the company in a report on Tuesday, July 21st. KeyCorp began coverage on DigitalOcean in a research report on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 price objective for the company. Finally, Piper Sandler boosted their price objective on shares of DigitalOcean from $98.00 to $155.00 and gave the company a “neutral” rating in a report on Tuesday, May 5th.

DigitalOcean Stock Performance

DigitalOcean stock opened at $117.28 on Monday. The firm has a 50 day simple moving average of $147.24 and a 200-day simple moving average of $106.42. The stock has a market cap of $12.24 billion, a price-to-earnings ratio of 51.22 and a beta of 1.61. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. DigitalOcean has a 1-year low of $25.56 and a 1-year high of $187.50.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm had revenue of $257.90 million for the quarter, compared to analyst estimates of $249.76 million. During the same quarter in the previous year, the company earned $0.56 EPS. The business’s revenue for the quarter 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. On average, analysts expect that DigitalOcean will post 0.57 EPS for the current year.

Insider Transactions at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of the company’s 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 transaction, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the transaction, the chief financial officer directly owned 538,414 shares of the company’s stock, valued at $91,568,068.98. The trade was a 1.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last quarter, insiders have sold 39,338 shares of company stock valued at $6,191,576. Company insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. State of New Jersey Common Pension Fund D acquired a new stake in shares of DigitalOcean in the fourth quarter valued at $2,358,000. New York State Teachers Retirement System lifted its stake in DigitalOcean by 33.0% during the 4th quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock worth $2,373,000 after acquiring an additional 12,229 shares in the last quarter. Legato Capital Management LLC acquired a new position in DigitalOcean during the 4th quarter worth about $1,365,000. Campbell Newman Asset Management Inc. purchased a new position in DigitalOcean during the 4th quarter valued at about $2,101,000. Finally, Fortis Capital Advisors LLC purchased a new position in DigitalOcean during the 4th quarter valued at about $1,020,000. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Company Profile

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.