DigitalOcean Holdings, Inc. (NYSE:DOCN – Get Free Report) has been given an average recommendation of “Moderate Buy” by the twelve ratings firms that are currently covering the firm, MarketBeat.com reports. Three research analysts have rated the stock with a hold rating and nine have issued a buy rating on the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $142.2308.
Several equities analysts have recently weighed in on DOCN shares. Citigroup lifted their target price on shares of DigitalOcean from $115.00 to $180.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Morgan Stanley raised their target price on DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Cantor Fitzgerald upped their price objective on shares of DigitalOcean from $68.00 to $83.00 and gave the company an “overweight” rating in a research note on Wednesday, February 25th. Royal Bank Of Canada set a $60.00 price objective on shares of DigitalOcean in a report on Tuesday, February 24th. Finally, Barclays raised their price objective on DigitalOcean from $105.00 to $183.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th.
Get Our Latest Analysis on DigitalOcean
DigitalOcean Price Performance
DigitalOcean (NYSE:DOCN – Get Free Report) last posted its earnings results 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. The company had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period in the previous year, the firm 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. On average, sell-side analysts forecast that DigitalOcean will post 0.55 EPS for the current year.
Insider Activity at DigitalOcean
In related news, Director Hilary Schneider sold 4,338 shares of DigitalOcean 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 in the company, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the completion of the transaction, the chief financial officer owned 573,272 shares of the company’s stock, valued at $87,423,980. This represents a 4.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 71,338 shares of company stock worth $6,803,816. 0.96% of the stock is currently owned by company insiders.
Institutional Investors Weigh In On DigitalOcean
Several hedge funds and other institutional investors have recently bought and sold shares of DOCN. Principal Financial Group Inc. lifted its holdings in shares of DigitalOcean by 155.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock valued at $95,080,000 after purchasing an additional 674,231 shares during the last quarter. Alyeska Investment Group L.P. purchased a new position in DigitalOcean during the 3rd quarter worth approximately $21,808,000. Arrowstreet Capital Limited Partnership increased its position in DigitalOcean by 90.9% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company’s stock worth $57,496,000 after buying an additional 568,823 shares during the period. Vanguard Group Inc. increased its position in DigitalOcean by 5.0% during the third quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock worth $319,836,000 after buying an additional 442,617 shares during the period. Finally, Franklin Resources Inc. lifted its stake in DigitalOcean by 784.2% in the fourth quarter. Franklin Resources Inc. now owns 494,314 shares of the company’s stock valued at $23,786,000 after buying an additional 438,411 shares during the last quarter. 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.
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