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

Key Points

• DigitalOcean has a consensus analyst rating of “Moderate Buy”, with 9 buy ratings and 3 hold ratings among 12 analysts. The average 12-month price target is about $142.23.
• The company reported strong quarterly results, posting EPS of $0.44 versus $0.27 expected and revenue of $257.91 million versus $249.76 million expected. Revenue rose 22.4% year over year, and DigitalOcean also issued Q2 and full-year 2026 guidance.
• Insider selling and institutional activity were notable: CFO Matt Steinfort and CAO Cherie Barrett both sold shares recently, while hedge funds and other institutions own nearly 49.77% of the stock. Several funds increased their positions during the latest reported periods.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) has earned a consensus rating of "Moderate Buy" from the twelve research firms that are currently covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $142.2308.

A number of brokerages have weighed in on DOCN. Canaccord Genuity Group boosted their target price on DigitalOcean from $120.00 to $200.00 and gave the stock a "buy" rating in a research report on Wednesday, May 6th. Citizens Jmp lifted their target price on DigitalOcean from $83.00 to $105.00 and gave the company a "market outperform" rating in a research report on Thursday, March 26th. Barclays upped their price target on shares of DigitalOcean from $105.00 to $183.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Cantor Fitzgerald increased their target price on DigitalOcean from $68.00 to $83.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 25th. Finally, Oppenheimer set a $190.00 price target on shares of DigitalOcean in a report on Wednesday, May 6th.

DigitalOcean Price Performance

Shares of NYSE:DOCN opened at $150.01 on Wednesday. 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 has a market capitalization of $15.66 billion, a PE ratio of 65.51 and a beta of 1.42. DigitalOcean has a 1-year low of $25.56 and a 1-year high of $164.77. The business has a fifty day moving average price of $99.72 and a 200-day moving average price of $68.82.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.17. The firm had revenue of $257.91 million for the quarter, compared to analysts' expectations of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The business's revenue for the quarter was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.56 earnings per share. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. As a group, equities analysts expect that DigitalOcean will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other news, CAO Cherie Barrett sold 22,000 shares of DigitalOcean stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the transaction, the chief accounting officer owned 62,469 shares in the company, valued at approximately $3,421,427.13. The trade was a 26.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the transaction, the chief financial officer directly owned 573,272 shares of the company's stock, valued at $87,423,980. The trade was a 4.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 71,338 shares of company stock worth $6,803,816 over the last 90 days. 0.96% of the stock is owned by insiders.

Institutional Investors Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in DigitalOcean by 5.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company's stock worth $11,342,000 after purchasing an additional 16,162 shares during the period. Intech Investment Management LLC raised its holdings in shares of DigitalOcean by 59.2% in the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company's stock valued at $1,317,000 after purchasing an additional 14,655 shares in the last quarter. Amundi raised its stake in DigitalOcean by 126,552.2% in the second quarter. Amundi now owns 29,130 shares of the company's stock worth $827,000 after buying an additional 29,107 shares in the last quarter. Jump Financial LLC bought a new position in shares of DigitalOcean in the 2nd quarter worth $3,212,000. Finally, Qube Research & Technologies Ltd lifted its position in shares of DigitalOcean by 69.7% during the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company's stock valued at $11,842,000 after buying an additional 170,339 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

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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