DigitalOcean (NYSE:DOCN) Given New $156.00 Price Target at The Goldman Sachs Group

DigitalOcean (NYSE:DOCN) had its price target reduced by The Goldman Sachs Group from $178.00 to $156.00 in a research report released on Thursday,Benzinga reports. They currently have a buy rating on the stock.

A number of other research firms have also commented on DOCN. UBS Group lowered their price target on DigitalOcean from $105.00 to $100.00 and set a “neutral” rating for the company in a research report on Wednesday. Piper Sandler raised shares of DigitalOcean from a “neutral” rating to an “overweight” rating and cut their price objective for the stock from $142.00 to $126.00 in a report on Wednesday, October 21st. KeyCorp reiterated an “overweight” rating on shares of DigitalOcean in a report on Tuesday, October 13th. Citigroup lowered their target price on shares of DigitalOcean from $190.00 to $160.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Zacks Research raised shares of DigitalOcean from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 19th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $141.06.

DigitalOcean Price Performance

Shares of NYSE:DOCN opened at $70.58 on Thursday. The company has a quick ratio of 1.31, a current ratio of 1.15 and a debt-to-equity ratio of 0.61. The stock’s 50 day moving average is $117.35 and its 200-day moving average is $111.57. DigitalOcean has a twelve month low of $41.96 and a twelve month high of $187.50. The firm has a market capitalization of $7.37 billion, a price-to-earnings ratio of 227.68, a PEG ratio of 73.25 and a beta of 1.69.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.13. The business had revenue of $321.19 million during the quarter, compared to the consensus estimate of $306.74 million. DigitalOcean had a return on equity of 15.01% and a net margin of 3.11%. The company’s quarterly revenue was up 39.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.54 EPS. Sell-side analysts forecast that DigitalOcean will post 0.62 EPS for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the sale, the chief financial officer directly owned 503,692 shares in the company, valued at $53,255,355.16. The trade was a 1.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 business’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the completion of the transaction, the chief accounting officer directly owned 65,487 shares in the company, valued at $8,668,514.19. This trade represents 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. In the last three months, insiders sold 18,441 shares of company stock worth $2,068,475. Insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several hedge funds have recently added to or reduced their stakes in DOCN. New Mexico Educational Retirement Board boosted its holdings in shares of DigitalOcean by 20.6% in the third quarter. New Mexico Educational Retirement Board now owns 20,500 shares of the company’s stock worth $2,734,000 after acquiring an additional 3,500 shares during the period. Bingham Private Wealth LLC grew its position in shares of DigitalOcean by 48.5% in the third quarter. Bingham Private Wealth LLC now owns 1,964 shares of the company’s stock valued at $262,000 after purchasing an additional 641 shares in the last quarter. Maryland State Retirement & Pension System raised its stake in shares of DigitalOcean by 32.7% during the 3rd quarter. Maryland State Retirement & Pension System now owns 5,883 shares of the company’s stock valued at $785,000 after purchasing an additional 1,449 shares during the period. Illinois Municipal Retirement Fund raised its stake in shares of DigitalOcean by 82.7% during the 3rd quarter. Illinois Municipal Retirement Fund now owns 41,995 shares of the company’s stock valued at $5,602,000 after purchasing an additional 19,013 shares during the period. Finally, New York Life Investment Management LLC raised its stake in shares of DigitalOcean by 68.8% during the 3rd quarter. New York Life Investment Management LLC now owns 14,300 shares of the company’s stock valued at $1,907,000 after purchasing an additional 5,830 shares during the period. Institutional investors own 49.77% of the company’s stock.

More DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean’s stock had previously jumped after the company raised guidance and cited AI revenue growth, giving investors signs of continued demand and expansion. DigitalOcean Stock Jumps On Higher Guidance And AI Revenue Growth
• Positive Sentiment: A third-quarter review highlighted accelerating revenue from software-driven cloud adoption and expansion of DigitalOcean’s platform, supporting the company’s growth narrative. DOCN Q3 deep dive
• Neutral Sentiment: Goldman Sachs lowered its price target to $156 but kept a Buy rating. The target remains well above the share price cited in the report, though the reduction signals a more cautious valuation view. Goldman Sachs ratings
• Negative Sentiment: Coverage flagged a $1 billion offering, which could raise concerns about potential share dilution or added stock supply. The accompanying analysis nevertheless describes DOCN as potentially trading below its estimated fair value. DigitalOcean Could Be 62% Below Fair Value Following Results And $1b Offering
• Negative Sentiment: Several analysts reduced targets: Canaccord to $180, Citi to $160, Barclays to $140, UBS to $100, and Stifel to $130. Canaccord, Citi, and Barclays retained positive ratings, while UBS stayed Neutral; the cuts may still temper expectations. Canaccord analyst ratings UBS price target update Stifel price target update

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud computing company that provides infrastructure and developer-focused services for startups, small and medium-sized businesses, and individual developers. Its platform is designed to simplify the deployment, management, and scaling of applications without requiring customers to build and operate extensive in-house infrastructure.

The company’s offerings include Droplets, its virtual machine service; managed Kubernetes; managed databases; object and block storage; networking tools; and application deployment services through App Platform.