DigitalOcean Holdings, Inc. (NYSE:DOCN) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have received an average rating of “Moderate Buy” from the thirteen brokerages that are presently covering the stock, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $146.3571.

Several brokerages recently issued reports on DOCN. Barclays lifted their price objective on shares of DigitalOcean from $105.00 to $183.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Bank of America increased their target price on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research report on Thursday, April 9th. Citizens Jmp lifted their price target on DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a report on Thursday, March 26th. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research report on Friday, March 27th. Finally, Morgan Stanley upped their price objective on DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th.

DigitalOcean Stock Performance

DOCN stock opened at $173.11 on Friday. DigitalOcean has a 1-year low of $25.56 and a 1-year high of $187.50. The business has a 50-day moving average price of $138.33 and a 200 day moving average price of $87.81. The company has a market capitalization of $18.07 billion, a P/E ratio of 75.59 and a beta of 1.60. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46.

DigitalOcean (NYSE:DOCN) last posted 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 net margin of 24.97% and a return on equity of 88.86%. The business had revenue of $257.91 million for the quarter, compared to the consensus estimate of $249.76 million. During the same quarter last 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, equities research analysts forecast that DigitalOcean will post 0.54 EPS for the current fiscal year.

Insider Transactions at DigitalOcean

In related news, CFO Matt Steinfort sold 25,000 shares of the business’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 transaction of $3,812,500.00. Following the completion of the transaction, the chief financial officer owned 573,272 shares in the company, valued at $87,423,980. The trade was a 4.18% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Hilary Schneider sold 4,338 shares of the 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 sale, the director directly owned 24,323 shares of the company’s stock, valued at $3,803,630.74. The trade was a 15.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 39,338 shares of company stock valued at $6,191,576 over the last quarter. 0.96% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

Large investors have recently made changes to their positions in the business. Bullseye Asset Management LLC boosted its holdings in DigitalOcean by 267.8% in the third quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company’s stock worth $3,392,000 after acquiring an additional 72,300 shares in the last quarter. State of New Jersey Common Pension Fund D acquired a new position in shares of DigitalOcean during the fourth quarter valued at about $2,358,000. New York State Teachers Retirement System raised its position in shares of DigitalOcean by 33.0% in the 4th quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock valued at $2,373,000 after purchasing an additional 12,229 shares during the last quarter. Segall Bryant & Hamill LLC purchased a new position in shares of DigitalOcean in the 3rd quarter valued at approximately $8,951,000. Finally, SG Americas Securities LLC boosted its stake in DigitalOcean by 266.1% in 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. 49.77% of the stock is owned by institutional investors and hedge funds.

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.