DigitalOcean (NYSE:DOCN) Stock Price Target Cut by UBS Group

DigitalOcean (NYSE:DOCN) had its target price dropped by equities researchers at UBS Group from $105.00 to $100.00 in a research report issued on Wednesday, Benzinga reports. The firm presently has a “neutral” rating on the stock. UBS Group‘s price target suggests a potential upside of 18.68% from the company’s current price.

A number of other research analysts have also commented on DOCN. KeyCorp restated an “overweight” rating on shares of DigitalOcean in a research note on Tuesday, October 13th. William Blair reiterated an “outperform” rating on shares of DigitalOcean in a research note on Wednesday, July 15th. Morgan Stanley lowered their price target on DigitalOcean from $175.00 to $150.00 and set an “overweight” rating on the stock in a report on Wednesday. Piper Sandler upgraded DigitalOcean from a “neutral” rating to an “overweight” rating and dropped their price target for the company from $142.00 to $126.00 in a research report on Wednesday, October 21st. Finally, Truist Financial started coverage on DigitalOcean in a research note on Thursday, August 27th. They set a “buy” rating and a $175.00 price objective for the company. 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 company. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus target price of $143.75.

DigitalOcean Stock Performance

Shares of DigitalOcean stock traded down $6.24 during trading on Wednesday, reaching $84.26. The company’s stock had a trading volume of 6,227,843 shares, compared to its average volume of 3,547,239. The company has a 50-day moving average price of $118.80 and a two-hundred day moving average price of $111.32. The firm has a market cap of $8.79 billion, a PE ratio of 38.47, a P/E/G ratio of 78.28 and a beta of 1.69. DigitalOcean has a fifty-two week low of $41.96 and a fifty-two week high of $187.50. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 1.14.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.32 by $0.13. The firm 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%. DigitalOcean’s revenue for the quarter was up 39.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.54 EPS. On average, analysts forecast that DigitalOcean will post 0.62 EPS for the current year.

Insider Transactions at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction dated Thursday, September 3rd. The shares were 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 $53,255,355.16. This trade represents a 1.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 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. Also, Director Warren J. Adelman sold 4,200 shares of the firm’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $124.01, for a total transaction of $520,842.00. Following the completion of the sale, the director owned 67,433 shares of the company’s stock, valued at $8,362,366.33. This trade represents a 5.86% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 22,641 shares of company stock valued at $2,589,317. Corporate insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds have recently bought and sold shares of DOCN. Bank of America Corp DE acquired a new position in shares of DigitalOcean during the 2nd quarter worth $241,945,000. Principal Financial Group Inc. boosted its position in shares of DigitalOcean by 155.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after buying an additional 674,231 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in DigitalOcean in the 2nd quarter valued at about $98,011,000. Allspring Global Investments Holdings LLC grew its stake in DigitalOcean by 81.3% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 683,707 shares of the company’s stock valued at $59,947,000 after acquiring an additional 306,529 shares during the last quarter. Finally, Sei Investments Co. grew its stake in DigitalOcean by 82.8% in the 1st quarter. Sei Investments Co. now owns 370,223 shares of the company’s stock valued at $31,758,000 after acquiring an additional 167,659 shares during the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean News Summary

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Third-quarter revenue rose 39.6% year over year to $321.2 million, ahead of estimates, while EPS of $0.45 beat the $0.32 consensus. DigitalOcean also raised its 2026 outlook, which was reported as exceeding expectations. Zacks Q3 earnings report
• Positive Sentiment: Longer-term growth prospects may be supporting the bullish case: one report says the company expects revenue growth of at least 60% in 2027, and that 90% of AI customer revenue comes from customers also using its core cloud services. The Motley Fool’s long-term takeaways
• Negative Sentiment: Several firms lowered their price targets, adding pressure after the results. Citigroup cut its target to $160 but kept a Buy rating, Barclays reduced its target to $140 and retained Overweight, and UBS lowered its target to $100 while maintaining Neutral. Stifel also cut its target, to $130. These revisions suggest analysts have moderated their expectations, even as some remain bullish. UBS target update
• Negative Sentiment: Despite beating estimates, quarterly EPS was down from $0.54 a year earlier, and a separate report noted a decline in non-GAAP earnings. That year-over-year earnings softness may temper the positive revenue and outlook news. Q3 non-GAAP earnings and outlook

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.