DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• DigitalOcean received a consensus analyst rating of “Moderate Buy” from 13 covering firms, with nine buy ratings, three hold ratings, and one strong buy. The average 1-year price target is about $146.36.
• The company reported strong quarterly results, posting EPS of $0.44 versus the $0.27 estimate and revenue of $257.91 million, up 22.4% year over year. DigitalOcean also raised guidance for Q2 2026 and FY 2026.
• Several insiders sold shares recently, including the CFO and a director, while institutional ownership remains significant at 49.77%. The stock opened at $169.35 and has traded between $25.56 and $184.46 over the past 12 months.

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the thirteen ratings firms that are presently covering the stock, MarketBeat Ratings reports. Three analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $146.3571.

DOCN has been the subject of several research reports. UBS Group lifted their price objective on DigitalOcean to $175.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 12th. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a research report on Tuesday, February 24th. Piper Sandler lifted their price objective on DigitalOcean from $98.00 to $155.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 5th. Barclays lifted their price objective on DigitalOcean from $105.00 to $183.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Finally, Bank of America lifted their price objective on DigitalOcean from $103.00 to $107.00 and gave the stock a "buy" rating in a research report on Thursday, April 9th.

DigitalOcean Price Performance

DOCN stock opened at $169.35 on Friday. The firm has a 50 day moving average of $131.28 and a 200-day moving average of $83.83. DigitalOcean has a 12-month low of $25.56 and a 12-month high of $184.46. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92. The company has a market cap of $17.67 billion, a price-to-earnings ratio of 73.95 and a beta of 1.60.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The company had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. During the same period last year, the firm earned $0.56 EPS. The company's revenue for the quarter was up 22.4% on a year-over-year basis. 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 0.54 EPS for the current fiscal year.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction that occurred 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 completion of the transaction, the chief financial officer directly owned 573,272 shares in the company, valued at $87,423,980. The trade was a 4.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, 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 owned 24,323 shares of the company's stock, valued at $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 39,338 shares of company stock valued at $6,191,576 over the last 90 days. Insiders own 0.96% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of DOCN. Allworth Financial LP raised its holdings in DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after acquiring an additional 255 shares during the last quarter. Parallel Advisors LLC raised its holdings in 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 acquiring an additional 129 shares during 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 valued at $29,000 after acquiring an additional 517 shares during the last quarter. NBC Securities Inc. acquired a new position in DigitalOcean in the 4th quarter valued at $32,000. Finally, Banque Cantonale Vaudoise acquired a new position in DigitalOcean in the 1st quarter valued at $33,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

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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