DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives Consensus Rating of “Buy” from Brokerages

DigitalOcean Holdings, Inc. (NYSE:DOCN) has been given an average rating of “Buy” by the seventeen analysts that are currently covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $152.8125.

Several equities analysts have recently weighed in on DOCN shares. KeyCorp initiated coverage on shares of DigitalOcean in a research note on Tuesday, June 2nd. They issued an “overweight” rating and a $200.00 price target on the stock. Barclays upped their price objective on shares of DigitalOcean from $160.00 to $161.00 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Canaccord Genuity Group reiterated a “buy” rating and issued a $200.00 price objective on shares of DigitalOcean in a report on Friday, July 10th. Oppenheimer set a $190.00 target price on shares of DigitalOcean in a research note on Wednesday, May 6th. Finally, Stifel Nicolaus upgraded DigitalOcean from a “hold” rating to a “buy” rating and boosted their target price for the stock from $135.00 to $160.00 in a report on Tuesday, July 21st.

DigitalOcean Stock Up 5.9%

NYSE DOCN opened at $121.76 on Friday. The business has a fifty day moving average price of $129.95 and a 200 day moving average price of $115.44. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31. The company has a market cap of $12.71 billion, a P/E ratio of 55.60, a P/E/G ratio of 98.44 and a beta of 1.61. DigitalOcean has a one year low of $30.89 and a one year high of $187.50.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company had revenue of $281.18 million for the quarter, compared to analysts’ expectations of $279.03 million. During the same quarter in the previous year, the company posted $0.39 EPS. The firm’s quarterly revenue was up 28.6% on a year-over-year basis. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Research analysts anticipate that DigitalOcean will post 0.63 EPS for the current fiscal year.

Insider Buying and Selling

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction 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 owned 538,414 shares of the company’s stock, valued at approximately $91,568,068.98. The trade was a 1.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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. Also, CAO Cherie Barrett sold 4,456 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $132.37, for a total value of $589,840.72. Following the completion of the sale, the chief accounting officer owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. The trade was a 6.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 18,656 shares of company stock worth $2,811,383. 0.96% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Corient Private Wealth LP grew its holdings in shares of DigitalOcean by 662.2% in the second quarter. Corient Private Wealth LP now owns 100,760 shares of the company’s stock valued at $15,822,000 after purchasing an additional 87,540 shares during the period. Amundi raised its stake in DigitalOcean by 31.7% during the second quarter. Amundi now owns 30,674 shares of the company’s stock worth $4,817,000 after purchasing an additional 7,389 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in DigitalOcean during the second quarter worth about $2,560,000. California State Teachers Retirement System boosted its holdings in DigitalOcean by 16,016.1% in the 2nd quarter. California State Teachers Retirement System now owns 14,211,058 shares of the company’s stock valued at $2,231,562,000 after purchasing an additional 14,122,879 shares during the last quarter. Finally, AlphaGrep UK Ltd acquired a new position in DigitalOcean in the 2nd quarter valued at about $604,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

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.