DigitalOcean Holdings, Inc. (DOCN) - What Are Brokerages Saying About This Stock?

Key Points

• Analysts remain bullish on DigitalOcean: Seventeen analysts give the stock a consensus “Moderate Buy” rating, with 13 buys, three holds and one strong buy. The average 12-month price target is $154.69, while recent targets range as high as $220.
• Shares fell sharply despite strong quarterly results: DOCN declined 10.1% to $98.38, well below its 50-day and 200-day moving averages. The company nevertheless exceeded earnings expectations, reporting $0.45 in EPS versus $0.26 expected and 28.6% year-over-year revenue growth.
• Insiders have recently sold shares, while institutions own nearly half the company: Insiders sold 22,641 shares worth about $2.6 million over the past 90 days, primarily through pre-arranged Rule 10b5-1 plans. Institutional investors hold approximately 49.77% of DOCN’s outstanding stock.

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) have been given an average rating of "Moderate Buy" by the seventeen analysts that are currently covering the firm, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among brokerages that have covered the stock in the last year is $154.69.

A number of brokerages have commented on DOCN. 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. KeyCorp restated an "overweight" rating on shares of DigitalOcean in a research note on Tuesday. Stifel Nicolaus raised DigitalOcean from a "hold" rating to a "buy" rating and lifted their target price for the stock from $135.00 to $160.00 in a research report on Tuesday, July 21st. Oppenheimer boosted their price target on DigitalOcean from $190.00 to $220.00 and gave the stock an "outperform" rating in a research note on Wednesday. Finally, William Blair reissued an "outperform" rating on shares of DigitalOcean in a report on Wednesday, July 15th.

DigitalOcean Stock Down 10.1%

NYSE:DOCN traded down $11.09 during mid-day trading on Friday, hitting $98.38. The company had a trading volume of 4,347,449 shares, compared to its average volume of 2,780,314. The business has a fifty day simple moving average of $125.04 and a 200-day simple moving average of $129.78. The firm has a market capitalization of $10.27 billion, a price-to-earnings ratio of 44.92, a PEG ratio of 93.08 and a beta of 1.70. DigitalOcean has a 1 year low of $37.83 and a 1 year high of $187.50. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 1.14.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.19. The company had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The company's revenue was up 28.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.39 earnings per share. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Equities analysts forecast that DigitalOcean will post 0.64 earnings per share for the current fiscal year.

Insider Transactions at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total value of $1,057,300.00. Following the completion of the transaction, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. This trade represents a 1.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 that occurred 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 sale, the chief accounting officer directly owned 65,487 shares in the company, valued at approximately $8,668,514.19. This represents a 6.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 22,641 shares of company stock valued at $2,589,317. Insiders own 0.96% of the company's stock.

Institutional Trading of DigitalOcean

Several institutional investors have recently added to or reduced their stakes in DOCN. Vontobel Holding Ltd. raised its holdings in shares of DigitalOcean by 0.9% during the third quarter. Vontobel Holding Ltd. now owns 17,934 shares of the company's stock worth $2,392,000 after purchasing an additional 156 shares during the period. TD Waterhouse Canada Inc. boosted its holdings in shares of DigitalOcean by 32,000.0% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 321 shares of the company's stock valued at $45,000 after buying an additional 320 shares during the period. NFSG Corp grew its position in shares of DigitalOcean by 25.6% during the 3rd quarter. NFSG Corp now owns 1,105 shares of the company's stock valued at $147,000 after buying an additional 225 shares during the last quarter. Assenagon Asset Management S.A. lifted its holdings in DigitalOcean by 956.0% in the third quarter. Assenagon Asset Management S.A. now owns 150,248 shares of the company's stock worth $20,042,000 after acquiring an additional 136,020 shares during the last quarter. Finally, Focus Financial Network Inc. lifted its holdings in DigitalOcean by 10.0% in the third quarter. Focus Financial Network Inc. now owns 1,589 shares of the company's stock worth $212,000 after acquiring an additional 145 shares during the last quarter. Institutional investors own 49.77% of the company's stock.

About DigitalOcean

DigitalOcean Holdings, Inc NYSE: DOCN provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Its platform offers on-demand infrastructure and software tools intended to simplify the development, deployment, and management of applications.

The company's services include cloud compute through Droplets, managed Kubernetes, managed databases, object and block storage, networking, and the App Platform for deploying applications. DigitalOcean also provides developer tools, tutorials, support, and other resources intended to help customers build and scale digital products without managing traditional data-center infrastructure.

Founded in 2011 and headquartered in New York City, DigitalOcean serves customers internationally through cloud infrastructure and data-center regions located in North America, Europe, and Asia.

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