DigitalOcean (NYSE:DOCN) Coverage Initiated by Analysts at Truist Financial

Equities research analysts at Truist Financial initiated coverage on shares of DigitalOcean (NYSE:DOCN) in a note issued to investors on Thursday,Benzinga reports. The firm set a “buy” rating and a $175.00 price target on the stock. Truist Financial’s price target would suggest a potential upside of 52.11% from the company’s current price.

A number of other equities research analysts also recently weighed in on the company. Robert W. Baird initiated coverage on DigitalOcean in a research report on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price objective on the stock. Morgan Stanley lifted their price target on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Canaccord Genuity Group reissued a “buy” rating and issued a $200.00 price objective on shares of DigitalOcean in a research report on Friday, July 10th. Stifel Nicolaus raised DigitalOcean from a “hold” rating to a “buy” rating and upped their target price for the company from $135.00 to $160.00 in a research report on Tuesday, July 21st. Finally, Barclays raised their price target on DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, DigitalOcean has a consensus rating of “Buy” and an average price target of $152.81.

DigitalOcean Stock Up 2.2%

NYSE:DOCN opened at $115.05 on Thursday. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31. DigitalOcean has a 1-year low of $30.76 and a 1-year high of $187.50. The company has a 50-day moving average of $130.98 and a 200 day moving average of $115.03. The firm has a market cap of $12.01 billion, a PE ratio of 52.53, a price-to-earnings-growth ratio of 96.37 and a beta of 1.61.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.26 by $0.19. The business had revenue of $281.18 million during the quarter, compared to analyst estimates of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company’s quarterly revenue was up 28.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.39 EPS. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. As a group, research analysts anticipate that DigitalOcean will post 0.63 EPS for the current fiscal year.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total value of $1,700,700.00. Following the sale, the chief financial officer owned 538,414 shares in the company, valued at $91,568,068.98. This represents a 1.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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, CAO Cherie Barrett sold 4,456 shares of DigitalOcean stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $132.37, for a total transaction of $589,840.72. Following the sale, the chief accounting officer owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. The trade was a 6.37% 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. Insiders have sold a total of 18,656 shares of company stock worth $2,811,383 over the last quarter. Insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Allworth Financial LP boosted its position in DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares in the last quarter. Parallel Advisors LLC increased its holdings in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after purchasing an additional 129 shares in the last quarter. Huntington National Bank lifted its stake in shares of DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after purchasing an additional 517 shares during the period. NBC Securities Inc. purchased a new stake in DigitalOcean during the fourth quarter worth $32,000. Finally, Banque Cantonale Vaudoise purchased a new position in DigitalOcean in the first quarter valued at $33,000. 49.77% of the stock is owned by institutional investors and hedge funds.

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.