DigitalOcean (NYSE:DOCN) Price Target Raised to $160.00

Key Points

• UBS raised its price target on DigitalOcean from $105 to $160 while keeping a "neutral" rating, amid a consensus "Moderate Buy" from analysts and a mean target of $128.31 (9 Buys, 3 Holds).
• DigitalOcean posted a Q1 "double beat"—EPS $0.44 vs. $0.27 expected and revenue $257.9M—then raised FY26 EPS guidance to $1.10–$1.20 and Q2 guidance, driving the stock to roughly $161 on strong volume and near an all‑time high.
• Valuation and execution risks persist despite momentum: trailing P/E is about 63.7, return on equity is negative, and insiders (including the CFO and CAO) sold shares, while institutional investors own ~49.8% of the stock.

DigitalOcean (NYSE:DOCN - Get Free Report) had its target price hoisted by analysts at UBS Group from $105.00 to $160.00 in a report issued on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the stock. UBS Group's price target would indicate a potential downside of 0.65% from the company's previous close.

Several other equities research analysts also recently commented on DOCN. Citigroup restated an "outperform" rating on shares of DigitalOcean in a report on Tuesday. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a report on Tuesday, February 24th. Oppenheimer set a $190.00 price target on DigitalOcean in a report on Wednesday. The Goldman Sachs Group upped their price target on DigitalOcean from $50.00 to $78.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. Finally, Cantor Fitzgerald upped their price target on DigitalOcean from $68.00 to $83.00 and gave the stock an "overweight" rating in a report on Wednesday, February 25th. Nine research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $128.31.

DigitalOcean Trading Up 5.4%

DOCN stock traded up $8.28 during mid-day trading on Wednesday, reaching $161.05. The company's stock had a trading volume of 6,082,173 shares, compared to its average volume of 4,104,545. The company has a market cap of $16.81 billion, a price-to-earnings ratio of 63.66 and a beta of 1.42. The business's 50 day moving average price is $79.74 and its 200 day moving average price is $60.64. DigitalOcean has a 12 month low of $25.56 and a 12 month high of $161.96.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.17. The business had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a negative return on equity of 127.00% and a net margin of 28.76%.The firm's revenue for the quarter was up 22.4% on a year-over-year basis. During the same period in the previous 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 0.4 EPS for the current fiscal year.

Insiders Place Their Bets

In other DigitalOcean news, CFO Matt Steinfort sold 20,000 shares of the company's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the completion of the transaction, the chief financial officer owned 545,916 shares in the company, valued at $30,243,746.40. This represents a 3.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Cherie Barrett sold 22,000 shares of the company's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total value of $1,204,940.00. Following the transaction, the chief accounting officer directly owned 62,469 shares in the company, valued at $3,421,427.13. This represents a 26.05% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.96% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in DOCN. Bullseye Asset Management LLC lifted its holdings in DigitalOcean by 267.8% during the 3rd quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company's stock worth $3,392,000 after purchasing an additional 72,300 shares in the last quarter. Penserra Capital Management LLC lifted its holdings in DigitalOcean by 27.2% during the 3rd quarter. Penserra Capital Management LLC now owns 293,132 shares of the company's stock worth $10,013,000 after purchasing an additional 62,725 shares in the last quarter. Segall Bryant & Hamill LLC purchased a new stake in DigitalOcean during the 3rd quarter worth about $8,951,000. Van Berkom & Associates Inc. lifted its holdings in DigitalOcean by 33.1% during the 3rd quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company's stock worth $53,460,000 after purchasing an additional 389,161 shares in the last quarter. Finally, SG Americas Securities LLC lifted its holdings in DigitalOcean by 266.1% during the 4th quarter. SG Americas Securities LLC now owns 167,126 shares of the company's stock worth $8,042,000 after purchasing an additional 121,473 shares in the last quarter. Hedge funds and other institutional investors own 49.77% of the company's stock.

More DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Company reported a Q1 “double beat” — EPS of $0.44 and revenue of ~$257.9M, both above consensus; management raised FY26 EPS guidance to $1.10–$1.20 and issued Q2 revenue guidance above estimates, which directly supports upside to estimates and investor expectations. DigitalOcean Analysts Increase Their Forecasts Following Strong Q1 Results
• Positive Sentiment: Market reaction and trading momentum pushed DOCN to an all‑time high as investors priced in faster growth and margin expansion following the quarterly beat and raised outlook. DigitalOcean (DOCN) Hits All-Time High on Stellar Revenues, Upbeat Q2
• Positive Sentiment: Analysts and modelers are raising forecasts and price targets after the results and guidance lift — this analyst support reinforces buying momentum. DigitalOcean Stock Soars 18 After Q1 Double Beat, Raises FY26 Guidance
• Positive Sentiment: Management and the earnings call emphasize AI-driven demand and capacity expansion as a durable growth vector — investors see DOCN as an infrastructure play for AI‑native customers. DigitalOcean (DOCN) Earnings Call Signals AI-Fueled Surge
• Neutral Sentiment: Full Q1 earnings call transcript and slide deck are available for due diligence; read management’s specifics on customer mix, capex cadence and margin assumptions before committing. DigitalOcean Holdings, Inc. (DOCN) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Some fundamentals and valuation risks remain — trailing P/E is elevated, ROE is negative, and Q1 EPS was still below last year’s figure; higher valuation increases sensitivity to any future execution miss. DigitalOcean Holdings, Inc. (DOCN) Surpasses Q1 Earnings and Revenue Estimates

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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