DigitalOcean (NYSE:DOCN) Stock Price Target Lowered at Barclays

DigitalOcean (NYSE:DOCN) had its price objective reduced by analysts at Barclays from $161.00 to $140.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Barclays‘s price objective would suggest a potential upside of 73.51% from the company’s previous close.

Several other brokerages have also recently weighed in on DOCN. William Blair restated an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Robert W. Baird started coverage on shares of DigitalOcean in a research report on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price objective for the company. Piper Sandler raised shares of DigitalOcean from a “neutral” rating to an “overweight” rating and dropped their price objective for the stock from $142.00 to $126.00 in a research note on Wednesday, October 21st. Zacks Research upgraded shares of DigitalOcean from a “hold” rating to a “strong-buy” rating in a report on Monday, October 19th. Finally, UBS Group decreased their target price on shares of DigitalOcean from $125.00 to $105.00 and set a “neutral” rating on the stock in a research report on Monday, October 26th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $145.94.

DigitalOcean Price Performance

DigitalOcean stock traded down $9.81 during midday trading on Wednesday, reaching $80.69. 3,216,895 shares of the stock traded hands, compared to its average volume of 3,531,464. The stock has a market cap of $8.42 billion, a P/E ratio of 36.81, a PEG ratio of 78.28 and a beta of 1.69. The stock’s fifty day moving average is $118.80 and its 200-day moving average is $111.32. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.14. DigitalOcean has a 12 month low of $41.96 and a 12 month high of $187.50.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.13. The business had revenue of $321.19 million for the quarter, compared to the consensus estimate of $306.74 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The company’s revenue was up 39.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.54 EPS. As a group, equities research analysts anticipate that DigitalOcean will post 0.62 EPS for the current year.

Insiders Place Their Bets

In other news, Director Warren J. Adelman sold 4,200 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $124.01, for a total value of $520,842.00. Following the sale, the director owned 67,433 shares of the company’s stock, valued at approximately $8,362,366.33. This represents a 5.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Cherie Barrett sold 4,456 shares of the firm’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the completion of the sale, the chief accounting officer owned 65,487 shares of the company’s stock, valued at $8,668,514.19. This trade represents a 6.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,641 shares of company stock valued at $2,589,317 over the last three months. 0.96% of the stock is owned by company insiders.

Institutional Trading of DigitalOcean

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE acquired a new stake in DigitalOcean in the second quarter valued at approximately $241,945,000. First Trust Advisors LP grew its holdings in DigitalOcean by 9.3% in the first quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock worth $123,622,000 after purchasing an additional 122,675 shares during the last quarter. Principal Financial Group Inc. increased its position in shares of DigitalOcean by 155.3% during the first quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after purchasing an additional 674,231 shares in the last quarter. Allspring Global Investments Holdings LLC increased its position in shares of DigitalOcean by 81.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 683,707 shares of the company’s stock worth $59,947,000 after purchasing an additional 306,529 shares in the last quarter. Finally, Bank of New York Mellon Corp purchased a new position in DigitalOcean during the 2nd quarter worth $98,011,000. 49.77% of the stock is owned by hedge funds and other institutional investors.

Key DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean reported Q3 earnings of $0.45 per share, topping the $0.32 consensus, while revenue of $321.19 million exceeded estimates of $306.74 million and rose 39.6% year over year. The company also raised its 2026 outlook, which reportedly came in above expectations. DigitalOcean Q3 results and outlook
• Positive Sentiment: Management expects revenue growth of at least 60% in 2027. About 90% of AI-related customer revenue comes from customers already using DigitalOcean’s core cloud services, suggesting AI demand is building within its existing customer base. DigitalOcean long-term investor takeaways
• Negative Sentiment: Stifel lowered its price target for DOCN to $130. Separately, non-GAAP earnings declined, and reported EPS of $0.45 was below the $0.54 earned a year earlier, despite beating analyst estimates. Stifel lowers DigitalOcean price target

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud computing company that provides infrastructure and developer-focused services for startups, small and medium-sized businesses, and individual developers. Its platform is designed to simplify the deployment, management, and scaling of applications without requiring customers to build and operate extensive in-house infrastructure.

The company’s offerings include Droplets, its virtual machine service; managed Kubernetes; managed databases; object and block storage; networking tools; and application deployment services through App Platform.