Vanguard Group Inc. Raises Stake in DigitalOcean Holdings, Inc. $DOCN

Vanguard Group Inc. increased its stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) by 5.0% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 9,362,889 shares of the company’s stock after buying an additional 442,617 shares during the quarter. Vanguard Group Inc. owned about 10.28% of DigitalOcean worth $319,836,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Advisors Asset Management Inc. raised its stake in shares of DigitalOcean by 18.0% during the second quarter. Advisors Asset Management Inc. now owns 2,630 shares of the company’s stock worth $75,000 after purchasing an additional 401 shares during the last quarter. Man Group plc boosted its holdings in DigitalOcean by 0.5% during the second quarter. Man Group plc now owns 82,485 shares of the company’s stock worth $2,356,000 after buying an additional 420 shares in the last quarter. PNC Financial Services Group Inc. boosted its stake in shares of DigitalOcean by 6.5% during the 2nd quarter. PNC Financial Services Group Inc. now owns 10,242 shares of the company’s stock worth $293,000 after acquiring an additional 628 shares in the last quarter. Vanguard Personalized Indexing Management LLC grew its holdings in shares of DigitalOcean by 9.2% in the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 7,978 shares of the company’s stock worth $273,000 after acquiring an additional 674 shares during the period. Finally, Prostatis Group LLC raised its holdings in DigitalOcean by 8.5% during the third quarter. Prostatis Group LLC now owns 9,281 shares of the company’s stock worth $317,000 after purchasing an additional 724 shares during the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on DOCN shares. Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a report on Monday, December 29th. Stifel Nicolaus set a $57.00 target price on DigitalOcean in a research report on Tuesday. Barclays upped their price target on DigitalOcean from $63.00 to $69.00 and gave the stock an “overweight” rating in a research note on Wednesday. Citizens Jmp lifted their price target on shares of DigitalOcean from $60.00 to $83.00 and gave the company a “market outperform” rating in a research report on Wednesday. Finally, Piper Sandler restated a “neutral” rating and issued a $67.00 price target on shares of DigitalOcean in a report on Tuesday. Nine analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $69.23.

DigitalOcean News Roundup

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 AI momentum — DigitalOcean said its annual run‑rate revenue for its AI business jumped ~150% year‑over‑year in Q4, underscoring faster growth in its higher‑margin AI offerings aimed at SMBs, which supports a higher growth multiple. This Glorious Growth Stock Is Up 68% in 12 Months. Here’s Why More Gains Could Follow
• Positive Sentiment: Analyst upgrades — Multiple firms raised price targets recently (Barclays to $69, Bank of America to $86, Cantor Fitzgerald to $83), signaling increased sell‑side confidence in DigitalOcean’s revenue trajectory and margin leverage. DigitalOcean (NYSE:DOCN) Price Target Raised to $86.00 at Bank of America
• Positive Sentiment: Revenue guidance and scale — Management and press reports highlight a push toward >$1B revenue in 2026, which if achieved would mark a material inflection in scale for this SMB‑focused cloud player. DigitalOcean predicts $1B+ in 2026 revenue
• Positive Sentiment: Record Q4 revenue growth — Earnings commentary and highlights point to record revenue growth and improving fundamentals, giving investors more conviction in sustained topline expansion. DigitalOcean Holdings Inc (DOCN) Q4 2025 Earnings Call Highlights: Record Revenue Growth and …
• Positive Sentiment: Institutional expansion — Reports of strengthening cloud infrastructure presence and institutional expansion suggest broader market adoption beyond core SMB customers, supporting longer‑term growth. DigitalOcean (NYSE:DOCN) Strengthens Cloud Infrastructure Presence With Institutional Expansion
• Neutral Sentiment: Investor access / visibility — CEO and CFO will present at the Morgan Stanley TMT conference (March 3); the fireside chat and webcast increase investor access and may amplify guidance or detail AI monetization plans. DigitalOcean to Participate in Morgan Stanley Technology, Media & Telecom Conference
• Negative Sentiment: Profit‑taking volatility — After hitting a record high, the stock has seen pullbacks driven by short‑term profit‑taking, which can amplify intraday moves and create selling pressure even amid positive fundamentals. DigitalOcean (DOCN) Sheds 8.45% on Profit-Taking After Record High
• Negative Sentiment: Convertible‑note hedge risk — Analysts flagged complexity and potential dilution/counterparty risks tied to DigitalOcean’s 2030 convertible notes hedge, a disclosure that could concern value‑focused investors if dilution scenarios materialize. DigitalOcean’s 2030 Convertible Notes Hedge Poses Complex Dilution, Pricing, and Counterparty Risks

DigitalOcean Stock Performance

NYSE DOCN opened at $56.09 on Friday. The firm has a market capitalization of $5.16 billion, a PE ratio of 22.17, a price-to-earnings-growth ratio of 20.44 and a beta of 1.77. DigitalOcean Holdings, Inc. has a one year low of $25.45 and a one year high of $70.43. The company has a 50-day simple moving average of $56.43 and a 200-day simple moving average of $45.48.

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.