DigitalOcean (NYSE:DOCN) Price Target Raised to $83.00 at Citizens Jmp

DigitalOcean (NYSE:DOCN) had its target price boosted by research analysts at Citizens Jmp from $60.00 to $83.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has a “market outperform” rating on the stock. Citizens Jmp’s target price indicates a potential upside of 36.51% from the company’s current price.

Other analysts have also recently issued research reports about the company. Citigroup restated a “buy” rating on shares of DigitalOcean in a research note on Friday, February 13th. Wall Street Zen downgraded shares of DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. Bank of America upped their price objective on shares of DigitalOcean from $72.00 to $86.00 and gave the stock a “buy” rating in a report on Wednesday. Cantor Fitzgerald lifted their target price on shares of DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Oppenheimer initiated coverage on DigitalOcean in a research report on Monday, November 10th. They set an “outperform” rating and a $60.00 price objective for the company. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $61.21.

DigitalOcean Stock Down 3.1%

Shares of NYSE DOCN traded down $1.94 during trading on Wednesday, hitting $60.80. 601,728 shares of the company traded hands, compared to its average volume of 3,131,768. The firm has a market capitalization of $5.56 billion, a P/E ratio of 24.87, a P/E/G ratio of 8.32 and a beta of 1.76. DigitalOcean has a 1 year low of $25.45 and a 1 year high of $70.43. The company has a 50-day moving average price of $55.78 and a 200-day moving average price of $45.13.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Huntington National Bank lifted its position in DigitalOcean by 638.3% during the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after buying an additional 517 shares in the last quarter. NBC Securities Inc. acquired a new stake in DigitalOcean in the fourth quarter valued at $32,000. Allworth Financial LP lifted its position in shares of DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the last quarter. Transamerica Financial Advisors LLC grew its position in shares of DigitalOcean by 417.9% in the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock worth $38,000 after acquiring an additional 631 shares in the last quarter. Finally, UMB Bank n.a. increased its stake in DigitalOcean by 242.1% during the fourth quarter. UMB Bank n.a. now owns 821 shares of the company’s stock valued at $40,000 after purchasing an additional 581 shares during the last quarter. 49.77% of the stock is currently owned by institutional investors and hedge funds.

More DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 results beat consensus: EPS of $0.44 vs. $0.38 expected and revenue of ~$242M, signaling better-than-expected near-term performance. DigitalOcean (NYSE:DOCN) Beats Q4 CY2025 Sales Expectations
• Positive Sentiment: AI momentum: management reported a large AI ARR ramp (reported ~150% ARR growth for AI-related revenue), suggesting durable, higher‑value customer adoption in inference workloads. AI Momentum Propels DigitalOcean Past Estimates With 150% ARR Surge
• Positive Sentiment: Up‑market traction and retention: large‑customer spending rose substantially (>$1M customers +123%), 0% churn among top customers this quarter and NDR ~101%, indicating stickier, higher‑quality revenue. DigitalOcean (DOCN) Q4 2025 Earnings Transcript
• Positive Sentiment: Strategic GPU diversification: expanded AMD Instinct GPU deployment to improve price/performance and supply resiliency for inference workloads. This supports competitive positioning vs. hyperscalers. DigitalOcean Expands AMD AI Cloud As Investors Weigh Growth And Margins
• Positive Sentiment: Analyst upgrade: Bank of America raised its price target (to $86) and maintains a buy rating, providing incremental buy-side validation. Benzinga – Bank of America price target raise
• Neutral Sentiment: Profitability: DigitalOcean reported strong GAAP net income and healthy margins for FY2025, underscoring that growth is not coming at the expense of profitability. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Market dynamics: relatively elevated short interest (~10%+) and the stock’s mid‑cap profile can amplify moves as news validates the AI growth story (potential technical support for further rallies).
• Negative Sentiment: Guidance cut on EPS: management issued Q1 and FY2026 EPS ranges below Street consensus (Q1 EPS guide 0.22–0.27 vs. ~0.39 consensus; FY guide 0.75–1.00 vs. ~1.68), which may temper expectations on near‑term profitability. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Near‑term free‑cash‑flow pressure: management expects lower FCF margins in 2026 (investing in data centers/capex to meet demand), which could worry income‑sensitive investors despite being growth‑oriented spending.

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.