Citizens Jmp Issues Positive Forecast for DigitalOcean (NYSE:DOCN) Stock Price

DigitalOcean (NYSE:DOCN) had its price objective upped by equities researchers at Citizens Jmp from $60.00 to $83.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has a “market outperform” rating on the stock. Citizens Jmp’s price target suggests a potential upside of 36.51% from the stock’s previous close.

Other equities research analysts have also issued reports about the company. Cantor Fitzgerald raised their price objective on DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a research note on Wednesday. UBS Group lifted their price target on DigitalOcean from $40.00 to $48.00 and gave the company a “neutral” rating in a report on Thursday, November 6th. Wall Street Zen lowered DigitalOcean from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. Canaccord Genuity Group upped their target price on DigitalOcean from $65.00 to $80.00 and gave the company a “buy” rating in a report on Friday. Finally, Royal Bank Of Canada set a $60.00 price objective on shares of DigitalOcean in a research report on Tuesday. Nine analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $61.21.

DigitalOcean Trading Down 3.1%

DOCN traded down $1.94 on Wednesday, reaching $60.80. The company had a trading volume of 601,728 shares, compared to its average volume of 3,131,768. The company has a market capitalization of $5.56 billion, a P/E ratio of 24.87, a PEG ratio of 8.32 and a beta of 1.76. The company has a fifty day moving average of $55.78 and a 200-day moving average of $45.13. DigitalOcean has a one year low of $25.45 and a one year high of $70.43.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Allworth Financial LP boosted its stake in DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after buying an additional 255 shares in the last quarter. Huntington National Bank boosted 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 in the last quarter. NBC Securities Inc. bought a new stake in shares of DigitalOcean in the 4th quarter worth about $32,000. Wilmington Savings Fund Society FSB acquired a new stake in shares of DigitalOcean during the 3rd quarter worth about $37,000. Finally, Transamerica Financial Advisors LLC lifted its holdings in DigitalOcean by 417.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 782 shares of the company’s stock valued at $38,000 after purchasing an additional 631 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

Key Stories Impacting DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q4 results beat consensus: EPS of $0.44 vs. $0.38 expected and revenue of ~$242M, signaling better-than-expected near-term performance. DigitalOcean (NYSE:DOCN) Beats Q4 CY2025 Sales Expectations
• Positive Sentiment: AI momentum: management reported a large AI ARR ramp (reported ~150% ARR growth for AI-related revenue), suggesting durable, higher‑value customer adoption in inference workloads. AI Momentum Propels DigitalOcean Past Estimates With 150% ARR Surge
• Positive Sentiment: Up‑market traction and retention: large‑customer spending rose substantially (>$1M customers +123%), 0% churn among top customers this quarter and NDR ~101%, indicating stickier, higher‑quality revenue. DigitalOcean (DOCN) Q4 2025 Earnings Transcript
• Positive Sentiment: Strategic GPU diversification: expanded AMD Instinct GPU deployment to improve price/performance and supply resiliency for inference workloads. This supports competitive positioning vs. hyperscalers. DigitalOcean Expands AMD AI Cloud As Investors Weigh Growth And Margins
• Positive Sentiment: Analyst upgrade: Bank of America raised its price target (to $86) and maintains a buy rating, providing incremental buy-side validation. Benzinga – Bank of America price target raise
• Neutral Sentiment: Profitability: DigitalOcean reported strong GAAP net income and healthy margins for FY2025, underscoring that growth is not coming at the expense of profitability. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Neutral Sentiment: Market dynamics: relatively elevated short interest (~10%+) and the stock’s mid‑cap profile can amplify moves as news validates the AI growth story (potential technical support for further rallies).
• Negative Sentiment: Guidance cut on EPS: management issued Q1 and FY2026 EPS ranges below Street consensus (Q1 EPS guide 0.22–0.27 vs. ~0.39 consensus; FY guide 0.75–1.00 vs. ~1.68), which may temper expectations on near‑term profitability. DigitalOcean Announces Fourth Quarter and Fiscal Year 2025 Financial Results
• Negative Sentiment: Near‑term free‑cash‑flow pressure: management expects lower FCF margins in 2026 (investing in data centers/capex to meet demand), which could worry income‑sensitive investors despite being growth‑oriented spending.

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.