DigitalOcean Holdings, Inc. (NYSE:DOCN) Given Average Rating of "Buy" by Brokerages

Key Points

• Analysts maintain a bullish view: Seventeen brokerages give DigitalOcean an average “Buy” rating, with a consensus 12-month price target of $152.81. Recent firms raised targets as high as $190.
• Quarterly results exceeded expectations: DigitalOcean reported EPS of $0.45 versus the $0.26 consensus and revenue of $281.18 million, up 28.6% year over year. The company issued fiscal 2026 EPS guidance of $1.35–$1.40.
• Insiders have been selling shares: Company insiders sold 18,656 shares worth $2.81 million over the past three months, while institutional investors own approximately 49.77% of the stock.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) has been given an average recommendation of "Buy" by the seventeen brokerages that are currently covering the stock, MarketBeat.com reports. Two investment analysts have rated the stock with a hold recommendation, thirteen have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average twelve-month price objective among brokers that have issued ratings on the stock in the last year is $152.8125.

A number of research analysts have weighed in on DOCN shares. Truist Financial started coverage on shares of DigitalOcean in a research report on Thursday. They issued a "buy" rating and a $175.00 price objective for the company. Morgan Stanley raised their target price on DigitalOcean from $75.00 to $175.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Stifel Nicolaus upgraded DigitalOcean from a "hold" rating to a "buy" rating and lifted their price target for the company from $135.00 to $160.00 in a research note on Tuesday, July 21st. Oppenheimer set a $190.00 price target on DigitalOcean in a report on Wednesday, May 6th. Finally, Weiss Ratings upgraded DigitalOcean from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th.

Insider Transactions at DigitalOcean

In related news, Director Warren J. Adelman sold 4,200 shares of DigitalOcean stock in a transaction on Friday, August 7th. The shares were sold at an average price of $124.01, for a total value of $520,842.00. Following the sale, the director owned 67,433 shares of the company's stock, valued at approximately $8,362,366.33. This trade represents a 5.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Cherie Barrett sold 4,456 shares of the business's stock in a transaction on 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 sale, the chief accounting officer directly owned 65,487 shares of the company's stock, valued at approximately $8,668,514.19. The trade was a 6.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 18,656 shares of company stock valued at $2,811,383 in the last three months. 0.96% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Allworth Financial LP increased its stake in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company's stock worth $25,000 after purchasing an additional 255 shares in the last quarter. Parallel Advisors LLC raised its position in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company's stock worth $28,000 after purchasing an additional 129 shares during the last quarter. Huntington National Bank lifted its stake in DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company's stock valued at $29,000 after buying an additional 517 shares in the last quarter. NBC Securities Inc. acquired a new stake in DigitalOcean in the 4th quarter worth about $32,000. Finally, Banque Cantonale Vaudoise acquired a new stake in DigitalOcean in the 1st quarter worth about $33,000. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean Trading Up 5.9%

DigitalOcean stock opened at $121.76 on Friday. The firm has a market cap of $12.71 billion, a PE ratio of 55.60, a P/E/G ratio of 98.44 and a beta of 1.61. DigitalOcean has a 12 month low of $30.89 and a 12 month high of $187.50. The stock's 50 day simple moving average is $129.95 and its two-hundred day simple moving average is $115.44. 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 posted its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm had revenue of $281.18 million during the quarter, compared to analyst estimates of $279.03 million. During the same period in the previous year, the firm earned $0.39 EPS. The business's quarterly revenue was up 28.6% on a year-over-year basis. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Analysts anticipate that DigitalOcean will post 0.63 earnings per share for the current 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.

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