DigitalOcean Holdings, Inc. (NYSE:DOCN) Given Consensus Recommendation of “Moderate Buy” by Brokerages

DigitalOcean Holdings, Inc. (NYSE:DOCN) has been given a consensus rating of “Moderate Buy” by the thirteen research firms that are presently covering the firm, MarketBeat Ratings reports. Three investment analysts have rated the stock with a hold recommendation, nine have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $145.3571.

Several brokerages have recently issued reports on DOCN. Citizens Jmp lifted their target price on shares of DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research report on Thursday, March 26th. KeyCorp started coverage on shares of DigitalOcean in a research note on Tuesday, June 2nd. They issued an “overweight” rating and a $200.00 price target on the stock. Bank of America lifted their price objective on DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a report on Thursday, April 9th. Citigroup boosted their price objective on DigitalOcean from $180.00 to $185.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, The Goldman Sachs Group increased their target price on DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a report on Wednesday, May 6th.

Insider Activity at DigitalOcean

In related news, Director Hilary Schneider sold 4,338 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the transaction, the director directly owned 24,323 shares of the company’s stock, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the completion of the transaction, the chief financial officer owned 538,414 shares in the company, valued at $91,568,068.98. The trade was a 1.82% decrease in their position. 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 have sold 39,338 shares of company stock valued at $6,191,576 over the last quarter. 0.96% of the stock is owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors and hedge funds have recently bought and sold shares of DOCN. Principal Financial Group Inc. grew its stake in DigitalOcean by 155.3% during the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock valued at $95,080,000 after acquiring an additional 674,231 shares in the last quarter. Alyeska Investment Group L.P. acquired a new stake in DigitalOcean in the 3rd quarter valued at about $21,808,000. Arrowstreet Capital Limited Partnership lifted its stake in DigitalOcean by 90.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock worth $57,496,000 after purchasing an additional 568,823 shares in the last quarter. Franklin Resources Inc. boosted its holdings in shares of DigitalOcean by 784.2% during the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock worth $23,786,000 after purchasing an additional 438,411 shares during the last quarter. Finally, Danske Bank A S acquired a new position in shares of DigitalOcean during the 3rd quarter worth approximately $14,582,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.

DigitalOcean Trading Up 2.4%

Shares of NYSE:DOCN opened at $140.37 on Thursday. The business’s 50 day moving average price is $154.76 and its 200-day moving average price is $97.62. DigitalOcean has a 1 year low of $25.56 and a 1 year high of $187.50. The firm has a market capitalization of $14.65 billion, a price-to-earnings ratio of 61.30 and a beta of 1.57. 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 issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.27 by $0.17. The company had revenue of $257.90 million during the quarter, compared to analyst estimates of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm’s revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.56 EPS. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. On average, equities research analysts forecast that DigitalOcean will post 0.54 earnings per share for the current fiscal year.

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.