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

Key Points

• DigitalOcean has a consensus analyst rating of “Moderate Buy” from 13 covering analysts, with an average 1-year price target of about $145.36.
• Recent analyst actions were generally positive, including price target increases from Citigroup, Barclays, Bank of America, Piper Sandler, and Morgan Stanley.
• Insider activity showed recent stock sales by Director Hilary Schneider and CFO Matt Steinfort, while the company also reported a strong quarter with EPS and revenue both beating estimates.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) has received a consensus rating of "Moderate Buy" from the thirteen analysts that are presently covering the firm, Marketbeat.com reports. Three analysts have rated the stock with a hold recommendation, nine have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $145.3571.

DOCN has been the subject of several research analyst reports. Citigroup raised their price objective on DigitalOcean from $180.00 to $185.00 and gave the stock a "buy" rating in a research note on Wednesday. Barclays increased their price objective on shares of DigitalOcean from $183.00 to $184.00 and gave the stock an "overweight" rating in a research note on Tuesday. Bank of America raised their target price on shares of DigitalOcean from $103.00 to $107.00 and gave the stock a "buy" rating in a report on Thursday, April 9th. Piper Sandler upped their price target on shares of DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a report on Tuesday, May 5th. Finally, Morgan Stanley increased their price target on DigitalOcean from $75.00 to $175.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th.

Insider Transactions at DigitalOcean

In related news, Director Hilary Schneider sold 4,338 shares of the business's stock in a transaction 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 completion of the transaction, the director directly owned 24,323 shares in the company, valued at $3,803,630.74. The trade was a 15.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction 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 sale, 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. Insiders sold 39,338 shares of company stock worth $6,191,576 in the last 90 days. Company insiders own 0.96% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Allworth Financial LP boosted its stake in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company's stock worth $25,000 after acquiring an additional 255 shares in the last quarter. Parallel Advisors LLC increased its stake in shares of 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 in the last quarter. Huntington National Bank raised its holdings in DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company's stock worth $29,000 after purchasing an additional 517 shares during the period. NBC Securities Inc. acquired a new position in DigitalOcean in the 4th quarter worth about $32,000. Finally, Banque Cantonale Vaudoise purchased a new position in DigitalOcean during the first quarter worth approximately $33,000. Institutional investors and hedge funds own 49.77% of the company's stock.

DigitalOcean Price Performance

Shares of DOCN opened at $140.37 on Thursday. The firm has a market capitalization of $14.65 billion, a PE ratio of 61.30 and a beta of 1.57. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. The company's fifty day moving average price is $154.76 and its 200-day moving average price is $97.62. DigitalOcean has a 1-year low of $25.56 and a 1-year high of $187.50.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.17. The company 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 firm's revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.56 EPS. 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, equities research analysts predict that DigitalOcean will post 0.54 EPS for the current year.

About DigitalOcean

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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