DigitalOcean (NYSE:DOCN) Stock Price Target Cut by Citigroup

DigitalOcean (NYSE:DOCN) had its price target lowered by stock analysts at Citigroup from $190.00 to $160.00 in a research note issued on Wednesday, Benzinga reports. The firm presently has a “buy” rating on the stock. Citigroup‘s price objective suggests a potential upside of 89.89% from the company’s previous close.

A number of other research analysts also recently issued reports on DOCN. Piper Sandler upgraded shares of DigitalOcean from a “neutral” rating to an “overweight” rating and dropped their target price for the company from $142.00 to $126.00 in a research report on Wednesday, October 21st. Weiss Ratings cut shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. Barclays decreased their price target on shares of DigitalOcean from $161.00 to $140.00 and set an “overweight” rating for the company in a research note on Wednesday. Morgan Stanley decreased their price target on shares of DigitalOcean from $175.00 to $150.00 and set an “overweight” rating for the company in a research note on Wednesday. Finally, Canaccord Genuity Group reiterated a “buy” rating and set a $200.00 price objective on shares of DigitalOcean in a report on Friday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $144.06.

DigitalOcean Trading Down 6.9%

Shares of DigitalOcean stock traded down $6.24 on Wednesday, reaching $84.26. 6,224,233 shares of the company’s stock were exchanged, compared to its average volume of 3,544,030. The company has a market capitalization of $8.79 billion, a P/E ratio of 38.47, a price-to-earnings-growth ratio of 78.28 and a beta of 1.69. DigitalOcean has a 52 week low of $41.96 and a 52 week high of $187.50. The firm’s 50-day moving average is $118.80 and its two-hundred day moving average is $111.32. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, November 3rd. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.32 by $0.13. The company had revenue of $321.19 million during the quarter, compared to the consensus estimate of $306.74 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company’s quarterly revenue was up 39.6% on a year-over-year basis. During the same quarter last year, the firm posted $0.54 EPS. Sell-side analysts predict that DigitalOcean will post 0.62 EPS for the current fiscal year.

Insider Activity

In other news, Director Warren J. Adelman sold 4,200 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $124.01, for a total transaction of $520,842.00. Following the transaction, the director directly owned 67,433 shares of the company’s stock, valued at $8,362,366.33. This represents a 5.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total value of $1,057,300.00. Following the completion of the transaction, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. This represents a 1.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 22,641 shares of company stock worth $2,589,317 over the last quarter. 0.96% of the stock is currently owned by corporate insiders.

Institutional Trading of DigitalOcean

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Root Financial Partners LLC bought a new position in shares of DigitalOcean in the third quarter valued at $31,000. Hilltop National Bank bought a new stake in shares of DigitalOcean during the second quarter worth about $38,000. Rakuten Securities Inc. bought a new stake in shares of DigitalOcean during the second quarter worth about $43,000. TD Waterhouse Canada Inc. increased its position in shares of DigitalOcean by 32,000.0% during the third quarter. TD Waterhouse Canada Inc. now owns 321 shares of the company’s stock worth $45,000 after acquiring an additional 320 shares in the last quarter. Finally, Parallel Advisors LLC raised its holdings in shares of DigitalOcean by 66.2% in the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after acquiring an additional 129 shares during the last quarter. Institutional investors own 49.77% of the company’s stock.

DigitalOcean News Roundup

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean reported Q3 adjusted earnings of $0.45 per share, above the $0.32 consensus, and revenue of $321.19 million, ahead of estimates and up 39.6% year over year. The company also raised its 2026 outlook. Q3 earnings and revenues top estimates
• Positive Sentiment: Longer-term commentary points to expected revenue growth of 60% or more in 2027. DigitalOcean also said that about 90% of AI-related customer revenue comes from customers using its core cloud services. Three key takeaways for long-term investors
• Neutral Sentiment: Analyst actions were mixed but included lower targets: Barclays cut its target to $140 while maintaining an Overweight rating; UBS lowered its target to $100 and kept Neutral. These targets remain above the share price cited in the reports, but the cuts may temper sentiment. UBS adjusts price target
• Negative Sentiment: Despite beating estimates, reported quarterly EPS was below the $0.54 earned a year earlier. Shares are falling, suggesting the earnings beat and improved outlook have not outweighed investor concerns; analyst target reductions may add to that pressure. DigitalOcean shares are falling

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.