DigitalOcean Holdings, Inc. (DOCN) – What Are Researchers Thinking About This Stock?

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have earned a consensus recommendation of “Buy” from the eighteen brokerages that are presently covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold recommendation, fourteen have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $152.88.

Several equities research analysts recently weighed in on DOCN shares. Zacks Research raised DigitalOcean from a “hold” rating to a “strong-buy” rating in a report on Monday, October 19th. Barclays upped their price objective on shares of DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 5th. UBS Group reduced their target price on shares of DigitalOcean from $155.00 to $140.00 and set a “neutral” rating for the company in a research note on Wednesday, August 5th. KeyCorp reaffirmed an “overweight” rating on shares of DigitalOcean in a report on Tuesday, October 13th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of DigitalOcean in a report on Thursday, October 15th.

Insider Activity at DigitalOcean

In related news, CAO Cherie Barrett sold 3,985 shares of the firm’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total value of $421,334.05. Following the completion of the sale, the chief accounting officer owned 58,399 shares in the company, valued at $6,174,526.27. This trade represents a 6.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total value of $1,057,300.00. Following the completion of the sale, the chief financial officer directly owned 503,692 shares in the company, valued at $53,255,355.16. This represents a 1.95% decrease in their position. 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. Insiders sold a total of 22,641 shares of company stock worth $2,589,317 over the last 90 days. Company insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC increased its position in DigitalOcean by 14.8% during the 1st quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company’s stock worth $47,000 after purchasing an additional 71 shares in the last quarter. Sigma Planning Corp raised its stake in DigitalOcean by 7.7% in the 3rd quarter. Sigma Planning Corp now owns 1,586 shares of the company’s stock valued at $212,000 after purchasing an additional 114 shares during the last quarter. Parallel Advisors LLC raised its stake in DigitalOcean by 66.2% in the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after purchasing an additional 129 shares during the last quarter. Signaturefd LLC raised its stake in DigitalOcean by 16.9% in the 3rd quarter. Signaturefd LLC now owns 918 shares of the company’s stock valued at $122,000 after purchasing an additional 133 shares during the last quarter. Finally, Focus Financial Network Inc. lifted its holdings in DigitalOcean by 10.0% in the 3rd quarter. Focus Financial Network Inc. now owns 1,589 shares of the company’s stock valued at $212,000 after purchasing an additional 145 shares in the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

DigitalOcean Stock Up 1.4%

DOCN opened at $93.33 on Friday. The business has a 50 day moving average price of $121.84 and a two-hundred day moving average price of $130.16. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.14. The company has a market cap of $9.74 billion, a PE ratio of 42.61, a P/E/G ratio of 80.21 and a beta of 1.70. DigitalOcean has a 52 week low of $37.83 and a 52 week high of $187.50.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.19. The company had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The firm’s revenue for the quarter was up 28.6% on a year-over-year basis. During the same period last year, the firm earned $0.39 EPS. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. As a group, research analysts anticipate that DigitalOcean will post 0.62 EPS for the current year.

About DigitalOcean

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.