DigitalOcean (NYSE:DOCN) Rating Increased to Strong-Buy at KeyCorp

Key Points

• KeyCorp upgraded DigitalOcean to a “strong-buy” rating, adding to a generally bullish analyst outlook. Overall, the stock now carries a consensus “Moderate Buy” rating with an average target price of $146.36.
• DigitalOcean posted better-than-expected quarterly results, with EPS of $0.44 versus $0.27 expected and revenue of $257.91 million, up 22.4% year over year. The company also issued Q2 2026 and full-year 2026 EPS guidance.
• Insiders sold shares in mid-May, including Director Hilary Schneider and CFO Matt Steinfort, while institutional ownership remained significant at 49.77% of the stock.

DigitalOcean (NYSE:DOCN - Get Free Report) was upgraded by stock analysts at KeyCorp to a "strong-buy" rating in a report issued on Tuesday,Zacks.com reports.

DOCN has been the topic of a number of other reports. Stifel Nicolaus set a $57.00 price objective on DigitalOcean in a report on Tuesday, February 24th. Morgan Stanley upped their price objective on DigitalOcean from $75.00 to $175.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of DigitalOcean in a report on Friday, March 27th. Canaccord Genuity Group upped their price objective on DigitalOcean from $120.00 to $200.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Finally, Piper Sandler upped their price objective on DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $146.36.

DigitalOcean Stock Down 0.4%

DOCN stock opened at $172.67 on Tuesday. 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 business's 50 day simple moving average is $115.48 and its 200 day simple moving average is $76.04. DigitalOcean has a 1-year low of $25.56 and a 1-year high of $177.00. The firm has a market capitalization of $18.02 billion, a PE ratio of 75.40 and a beta of 1.60.

DigitalOcean (NYSE:DOCN - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The firm had revenue of $257.91 million for the quarter, compared to analyst estimates of $249.76 million. During the same period in the prior year, the firm posted $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, research analysts anticipate that DigitalOcean will post 0.55 EPS for the current year.

Insider Activity

In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of the firm's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the transaction, the director directly owned 24,323 shares of the company's stock, valued at $3,803,630.74. This trade represents a 15.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of the company's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the sale, the chief financial officer owned 573,272 shares of the company's stock, valued at approximately $87,423,980. This represents a 4.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.96% of the stock is owned by company insiders.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently modified their holdings of the business. EverSource Wealth Advisors LLC raised its position in DigitalOcean by 14.8% in the first quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company's stock valued at $47,000 after purchasing an additional 71 shares during the last quarter. Parallel Advisors LLC raised its position in DigitalOcean by 66.2% in the first quarter. Parallel Advisors LLC now owns 324 shares of the company's stock valued at $28,000 after purchasing an additional 129 shares during the last quarter. Maryland State Retirement & Pension System raised its position in DigitalOcean by 1.9% in the fourth quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company's stock valued at $481,000 after purchasing an additional 185 shares during the last quarter. Allworth Financial LP raised its position in DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company's stock valued at $25,000 after purchasing an additional 255 shares during the last quarter. Finally, CWM LLC increased its stake in shares of DigitalOcean by 1.3% in the fourth quarter. CWM LLC now owns 20,971 shares of the company's stock valued at $1,009,000 after buying an additional 270 shares during the period. 49.77% of the stock is currently owned by institutional investors.

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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