DigitalOcean Holdings, Inc. (NYSE:DOCN) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts rate DigitalOcean a “Moderate Buy”: Of 17 analysts, 12 recommend buying, two recommend a strong buy, and three recommend holding. The average 12-month price target is $152.81.
• Recent quarterly results exceeded expectations: DigitalOcean reported adjusted EPS of $0.45 versus the $0.26 consensus estimate, while revenue rose 28.6% year over year to $281.18 million.
• The stock opened at $146.50 and has a $33.69–$187.50 52-week range; its valuation includes a 66.89 price-to-earnings ratio and a $15.29 billion market capitalization.

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) have been given a consensus rating of "Moderate Buy" by the seventeen ratings firms that are covering the stock, MarketBeat Ratings reports. Three analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $152.8125.

DOCN has been the subject of several recent research reports. Truist Financial started coverage on shares of DigitalOcean in a research note on Thursday, August 27th. They set a "buy" rating and a $175.00 target price for the company. Robert W. Baird assumed coverage on shares of DigitalOcean in a report on Tuesday, July 21st. They issued an "outperform" rating and a $165.00 price target for the company. Weiss Ratings downgraded shares of DigitalOcean from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 9th. Stifel Nicolaus upgraded shares of DigitalOcean from a "hold" rating to a "buy" rating and increased their price objective for the stock from $135.00 to $160.00 in a research note on Tuesday, July 21st. Finally, UBS Group decreased their target price on DigitalOcean from $155.00 to $140.00 and set a "neutral" rating for the company in a research note on Wednesday, August 5th.

DigitalOcean Price Performance

DOCN stock opened at $146.50 on Tuesday. The stock's 50 day moving average is $122.16 and its two-hundred day moving average is $122.41. DigitalOcean has a 52-week low of $33.69 and a 52-week high of $187.50. The company has a market capitalization of $15.29 billion, a PE ratio of 66.89, a P/E/G ratio of 110.66 and a beta of 1.57. The company has a quick ratio of 1.31, a current 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 (EPS) for the quarter, beating analysts' consensus estimates of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The business had revenue of $281.18 million for the quarter, compared to analyst estimates of $279.03 million. During the same quarter in the prior year, the business posted $0.39 EPS. The company's revenue for the quarter 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 predict that DigitalOcean will post 0.64 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Matt Steinfort sold 10,000 shares of the business's stock in a transaction that occurred 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 completion of the transaction, the chief financial officer 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 through 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 3,985 shares of the stock in a transaction on Thursday, September 3rd. The stock was 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 directly owned 58,399 shares in the company, valued at $6,174,526.27. This represents a 6.39% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In 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 Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC grew its holdings in DigitalOcean by 14.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company's stock worth $47,000 after buying an additional 71 shares in the last quarter. Parallel Advisors LLC boosted its position in DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company's stock worth $28,000 after acquiring an additional 129 shares during the period. Hilltop National Bank bought a new position in shares of DigitalOcean in the second quarter worth $38,000. Rakuten Securities Inc. bought a new position in shares of DigitalOcean in the second quarter worth $43,000. Finally, Amundi increased its holdings in shares of DigitalOcean by 1.6% during the first quarter. Amundi now owns 23,285 shares of the company's stock valued at $1,997,000 after purchasing an additional 370 shares during the period. 49.77% of the stock is owned by institutional investors and hedge funds.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and medium-sized businesses. Its platform offers on-demand infrastructure and developer tools intended to simplify the process of building, deploying, and scaling applications.

The company's products include virtual machines known as Droplets, managed Kubernetes, managed databases, object storage through Spaces, block storage, networking services, and App Platform, a platform-as-a-service offering for application deployment.

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