Canaccord Genuity Group Reiterates Buy Rating for DigitalOcean (NYSE:DOCN)

DigitalOcean (NYSE:DOCN)‘s stock had its “buy” rating reiterated by analysts at Canaccord Genuity Group in a research note issued to investors on Friday,Benzinga reports. They presently have a $200.00 target price on the stock. Canaccord Genuity Group’s price target would suggest a potential upside of 41.72% from the company’s current price.

Several other equities research analysts also recently weighed in on DOCN. Piper Sandler increased their price target on DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 5th. Barclays increased their price objective on shares of DigitalOcean from $183.00 to $184.00 and gave the company an “overweight” rating in a report on Tuesday. The Goldman Sachs Group lifted their price target on DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Morgan Stanley upped their price objective on shares of DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Citigroup increased their price target on DigitalOcean from $180.00 to $185.00 and gave the company a “buy” rating in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $145.36.

DigitalOcean Trading Up 0.5%

Shares of NYSE:DOCN opened at $141.13 on Friday. DigitalOcean has a 52-week low of $25.56 and a 52-week high of $187.50. The stock has a market cap of $14.73 billion, a price-to-earnings ratio of 61.63 and a beta of 1.57. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. The business has a 50-day moving average price of $155.69 and a 200-day moving average price of $98.28.

DigitalOcean (NYSE:DOCN) last issued its 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. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The firm had revenue of $257.90 million for the quarter, compared to analyst estimates of $249.76 million. During the same quarter in the prior year, the firm earned $0.56 earnings per share. DigitalOcean’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. Equities analysts predict that DigitalOcean will post 0.55 EPS for the current year.

Insiders Place Their Bets

In other news, CFO Matt Steinfort sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $152.50, for a total value of $3,812,500.00. Following the completion of the transaction, the chief financial officer owned 573,272 shares of the company’s stock, valued at approximately $87,423,980. This trade represents a 4.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Hilary Schneider sold 4,338 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the completion of the transaction, the director directly owned 24,323 shares of the company’s stock, valued at $3,803,630.74. This represents a 15.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 39,338 shares of company stock worth $6,191,576 over the last 90 days. 0.96% of the stock is owned by insiders.

Institutional Investors Weigh In On DigitalOcean

A number of hedge funds have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC grew its position in shares of DigitalOcean by 14.8% during the first quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company’s stock worth $47,000 after buying an additional 71 shares in the last quarter. Parallel Advisors LLC raised its holdings 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 acquiring an additional 129 shares in the last quarter. Maryland State Retirement & Pension System lifted its stake in DigitalOcean by 1.9% in the fourth quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock worth $481,000 after acquiring an additional 185 shares during the last quarter. Hilltop National Bank acquired a new position in DigitalOcean during the 2nd quarter worth approximately $38,000. Finally, Allworth Financial LP grew its holdings in 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. Institutional investors and hedge funds own 49.77% of the company’s stock.

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.