DigitalOcean (NYSE:DOCN) Raised to Strong-Buy at Robert W. Baird

DigitalOcean (NYSE:DOCN) was upgraded by stock analysts at Robert W. Baird to a “strong-buy” rating in a report released on Tuesday,Zacks.com reports.

Several other research firms also recently weighed in on DOCN. Citizens Jmp boosted their target price on DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research report on Thursday, March 26th. Bank of America raised their price target on DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a research report on Thursday, April 9th. Morgan Stanley lifted their price objective on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Oppenheimer set a $190.00 price objective on shares of DigitalOcean in a research report on Wednesday, May 6th. Finally, William Blair reissued an “outperform” rating on shares of DigitalOcean in a research note on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $151.93.

DigitalOcean Trading Up 4.8%

DOCN opened at $142.96 on Tuesday. The stock has a 50-day moving average of $152.37 and a 200 day moving average of $103.16. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92. DigitalOcean has a 12 month low of $25.56 and a 12 month high of $187.50. The firm has a market cap of $14.92 billion, a P/E ratio of 62.43 and a beta of 1.57.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business had revenue of $257.90 million for the quarter, compared to the consensus estimate of $249.76 million. The company’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.56 earnings per share. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. As a group, research analysts forecast that DigitalOcean will post 0.56 EPS for the current year.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total transaction 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 Hilary Schneider sold 4,338 shares of the company’s stock in a transaction on Friday, May 15th. The shares were 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 in the company, valued at $3,803,630.74. This trade represents a 15.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 39,338 shares of company stock worth $6,191,576. Company insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently made changes to their positions in DOCN. Hilltop National Bank purchased a new stake in shares of DigitalOcean during the second quarter valued at $38,000. Parallel Advisors LLC increased its stake in DigitalOcean by 66.2% in the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares during the period. Banque Cantonale Vaudoise purchased a new position in DigitalOcean in the 1st quarter worth about $33,000. LRI Investments LLC purchased a new position in DigitalOcean in the 2nd quarter worth about $64,000. Finally, Optiver Holding B.V. lifted its holdings in DigitalOcean by 1,063.9% during the 1st quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock valued at $36,000 after buying an additional 383 shares in the last quarter. 49.77% of the stock is currently owned by institutional investors.

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.