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

DigitalOcean Holdings, Inc. (NYSE:DOCN) has been given a consensus rating of “Moderate Buy” by the sixteen research firms that are presently covering the company, MarketBeat.com reports. Three analysts have rated the stock with a hold recommendation, eleven have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $151.9333.

Several research firms recently commented on DOCN. Robert W. Baird assumed coverage on DigitalOcean in a research note on Tuesday, July 21st. They issued an “outperform” rating and a $165.00 price objective for the company. William Blair reaffirmed an “outperform” rating on shares of DigitalOcean in a research note on Wednesday, July 15th. UBS Group dropped their target price on shares of DigitalOcean from $175.00 to $155.00 and set a “neutral” rating for the company in a report on Wednesday, July 8th. Bank of America increased their target price 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. Finally, Canaccord Genuity Group reissued a “buy” rating and issued a $200.00 price target on shares of DigitalOcean in a research note on Friday, July 10th.

Insider Transactions at DigitalOcean

In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of the firm’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 of the company’s stock, valued at $3,803,630.74. This trade represents a 15.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the firm’s 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 completion of the transaction, the chief financial officer directly owned 538,414 shares in the company, valued at $91,568,068.98. This trade represents a 1.82% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 39,338 shares of company stock valued at $6,191,576. 0.96% of the stock is owned by insiders.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors have recently added to or reduced their stakes in the stock. Fuller & Thaler Asset Management Inc. grew its holdings in DigitalOcean by 11.6% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock valued at $116,467,000 after buying an additional 252,303 shares in the last quarter. Lazard Asset Management LLC increased its stake in shares of DigitalOcean by 34.5% in the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock worth $47,430,000 after acquiring an additional 426,264 shares during the last quarter. Van Berkom & Associates Inc. raised its holdings in shares of DigitalOcean by 2.9% during the 4th quarter. Van Berkom & Associates Inc. now owns 1,610,671 shares of the company’s stock worth $77,505,000 after acquiring an additional 45,680 shares during the period. First Trust Advisors LP boosted its position in shares of DigitalOcean by 9.3% during the 1st quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock valued at $123,622,000 after acquiring an additional 122,675 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of DigitalOcean by 2.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company’s stock valued at $65,432,000 after acquiring an additional 31,682 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Price Performance

NYSE:DOCN opened at $117.28 on Monday. DigitalOcean has a 12 month low of $25.56 and a 12 month high of $187.50. The stock has a 50 day moving average of $147.24 and a two-hundred day moving average of $106.42. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92. The firm has a market cap of $12.24 billion, a P/E ratio of 51.22 and a beta of 1.61.

DigitalOcean (NYSE:DOCN) last announced its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.17. The business had revenue of $257.90 million during the quarter, compared to analysts’ expectations of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business’s revenue was up 22.4% compared to the same quarter last year. During the same quarter in the prior 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. On average, analysts expect that DigitalOcean will post 0.57 earnings per share for the current fiscal year.

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.