Equities research analysts at Truist Financial initiated coverage on shares of DigitalOcean (NYSE:DOCN – Get Free Report) in a research note issued to investors on Thursday,Benzinga reports. The brokerage set a “buy” rating and a $175.00 price target on the stock. Truist Financial’s price target suggests a potential upside of 52.11% from the stock’s previous close.
Several other equities research analysts have also commented on DOCN. Barclays boosted their price objective on DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 5th. Piper Sandler lifted their price target on DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 5th. The Goldman Sachs Group increased their price objective on DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Morgan Stanley lifted their target price 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. Finally, Canaccord Genuity Group reissued a “buy” rating and issued a $200.00 price target on shares of DigitalOcean in a research note on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Buy” and an average price target of $152.81.
View Our Latest Stock Analysis on DOCN
DigitalOcean Stock Performance
DigitalOcean (NYSE:DOCN – Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The business had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. During the same quarter in the previous year, the company earned $0.39 earnings per share. The company’s quarterly revenue was up 28.6% on a year-over-year basis. 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 forecast that DigitalOcean will post 0.63 earnings per share for the current fiscal year.
Insider Buying and Selling
In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of the firm’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 sale, the chief financial officer owned 538,414 shares of the company’s stock, valued at $91,568,068.98. This trade represents a 1.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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 the stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total value of $589,840.72. Following the transaction, the chief accounting officer owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. This represents a 6.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 18,656 shares of company stock worth $2,811,383. Insiders own 0.96% of the company’s stock.
Institutional Investors Weigh In On DigitalOcean
A number of institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System raised its position in DigitalOcean by 16,016.1% in the second quarter. California State Teachers Retirement System now owns 14,211,058 shares of the company’s stock valued at $2,231,562,000 after purchasing an additional 14,122,879 shares during the period. Fuller & Thaler Asset Management Inc. grew its stake in shares of DigitalOcean by 11.6% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock valued at $116,467,000 after buying an additional 252,303 shares in the last quarter. Lazard Asset Management LLC raised its holdings in shares of DigitalOcean by 34.5% in the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after buying an additional 426,264 shares during the period. Van Berkom & Associates Inc. lifted its stake in DigitalOcean by 2.9% during the 4th quarter. Van Berkom & Associates Inc. now owns 1,610,671 shares of the company’s stock worth $77,505,000 after acquiring an additional 45,680 shares in the last quarter. Finally, Bank of America Corp DE acquired a new position in DigitalOcean in the 2nd quarter valued at about $241,945,000. 49.77% of the stock is currently owned by institutional investors and hedge funds.
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.
Further Reading
- Five stocks we like better than DigitalOcean
- When Unusual Volume Isn’t Noise: 3 Small-Caps Sending Signals
- Is Quantinuum Emerging as a Leader in the Quantum Race?
- J.M. Smucker’s Rally Nears a Key Test: Is a Full Recovery Ahead?
- Williams-Sonoma’s Quarter Gave Bulls More Than Just a Beat-and-Raise
Receive News & Ratings for DigitalOcean Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DigitalOcean and related companies with MarketBeat.com's FREE daily email newsletter.
