DigitalOcean (NYSE:DOCN) Rating Increased to Strong-Buy at Robert W. Baird

DigitalOcean (NYSE:DOCN) was upgraded by analysts at Robert W. Baird to a “strong-buy” rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other research firms have also commented on DOCN. Bank of America lifted their price target on shares of DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research report on Thursday, April 9th. Stifel Nicolaus upgraded DigitalOcean from a “hold” rating to a “buy” rating and increased their price objective for the stock from $135.00 to $160.00 in a research report on Tuesday. Barclays cut their target price on DigitalOcean from $184.00 to $160.00 and set an “overweight” rating for the company in a research note on Tuesday. William Blair restated an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Finally, The Goldman Sachs Group upped their price target on DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $151.93.

DigitalOcean Trading Up 4.8%

Shares of DOCN opened at $142.96 on Tuesday. DigitalOcean has a 12-month low of $25.56 and a 12-month high of $187.50. The firm has a market capitalization of $14.92 billion, a P/E ratio of 62.43 and a beta of 1.57. The firm has a 50-day moving average price of $152.37 and a 200 day moving average price of $103.16. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. The company had revenue of $257.90 million for the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. DigitalOcean’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.56 earnings per share. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Sell-side analysts forecast that DigitalOcean will post 0.56 EPS for the current 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 25,000 shares of DigitalOcean stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the completion of the sale, the chief financial officer owned 573,272 shares of the company’s stock, valued at $87,423,980. This trade represents a 4.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 39,338 shares of company stock valued at $6,191,576 in the last ninety days. 0.96% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently modified their holdings of DOCN. Hilltop National Bank purchased a new stake in shares of DigitalOcean in the 2nd quarter valued at $38,000. Parallel Advisors LLC boosted its holdings in DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after acquiring an additional 129 shares during the period. Banque Cantonale Vaudoise purchased a new position in DigitalOcean during the 1st quarter valued at about $33,000. LRI Investments LLC acquired a new position in DigitalOcean in the 2nd quarter valued at about $64,000. Finally, Optiver Holding B.V. grew its position in DigitalOcean by 1,063.9% in the 1st quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock valued at $36,000 after acquiring an additional 383 shares in the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

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.