DigitalOcean Holdings, Inc. (NYSE:DOCN) Stock Now Rated “Moderate Buy” by Sell-Side Analysts

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have been given an average rating of “Moderate Buy” by the seventeen research firms that are presently covering the company, Marketbeat reports. Three investment analysts have rated the stock with a hold recommendation, twelve have issued a buy recommendation and two have given a strong buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $152.81.

Several analysts have commented on DOCN shares. Weiss Ratings cut shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Truist Financial assumed coverage on DigitalOcean in a research report on Thursday, August 27th. They set a “buy” rating and a $175.00 target price on the stock. Barclays raised their price target on DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 5th. Canaccord Genuity Group reiterated a “buy” rating and issued a $200.00 price target on shares of DigitalOcean in a report on Friday, July 10th. Finally, Robert W. Baird initiated coverage on DigitalOcean in a research note on Tuesday, July 21st. They issued an “outperform” rating and a $165.00 price objective on the stock.

DigitalOcean Stock Down 1.1%

DOCN stock opened at $140.01 on Tuesday. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31. The company’s 50 day simple moving average is $123.89 and its 200-day simple moving average is $124.40. The firm has a market capitalization of $14.61 billion, a PE ratio of 63.93, a P/E/G ratio of 118.83 and a beta of 1.57. DigitalOcean has a 12 month low of $33.69 and a 12 month high of $187.50.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.26 by $0.19. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.The company had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. During the same period in the previous year, the firm posted $0.39 earnings per share. The business’s revenue for the quarter was up 28.6% compared to the same quarter last year. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Equities analysts expect that DigitalOcean will post 0.64 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Cherie Barrett sold 3,985 shares of the stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total value of $421,334.05. Following the completion of the sale, the chief accounting officer owned 58,399 shares of the company’s stock, valued at $6,174,526.27. This represents a 6.39% decrease in their ownership of the stock. The transaction was disclosed in a legal 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, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the completion of the transaction, the chief financial officer directly owned 503,692 shares in the company, valued at approximately $53,255,355.16. This represents a 1.95% decrease in their position. The SEC filing for this sale provides additional information. 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 sold a total of 22,641 shares of company stock worth $2,589,317 over the last ninety days. 0.96% of the stock is owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors have recently added to or reduced their stakes in DOCN. Hilltop National Bank purchased a new stake in shares of DigitalOcean during the second quarter worth about $38,000. Rakuten Securities Inc. acquired a new position in shares of DigitalOcean in the second quarter worth about $43,000. Parallel Advisors LLC boosted its holdings in DigitalOcean by 66.2% in the first quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after purchasing an additional 129 shares during the last quarter. Banque Cantonale Vaudoise acquired a new stake in DigitalOcean during the 1st quarter valued at approximately $33,000. Finally, LRI Investments LLC acquired a new stake in DigitalOcean during the 2nd quarter valued at approximately $64,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and medium-sized businesses. Its platform offers on-demand infrastructure and developer tools intended to simplify the process of building, deploying, and scaling applications.

The company’s products include virtual machines known as Droplets, managed Kubernetes, managed databases, object storage through Spaces, block storage, networking services, and App Platform, a platform-as-a-service offering for application deployment.