DigitalOcean (NYSE:DOCN) Shares Up 11% After Analyst Upgrade

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares rose 11% during trading on Tuesday after Robert W. Baird upgraded the stock to a strong-buy rating. The stock traded as high as $132.79 and last traded at $132.1740. 537,840 shares changed hands during mid-day trading, a decline of 86% from the average session volume of 3,834,250 shares. The stock had previously closed at $119.09.

DOCN has been the topic of several other research reports. Morgan Stanley lifted their target price on DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. William Blair restated an “outperform” rating on shares of DigitalOcean in a report on Wednesday, July 15th. Bank of America lifted their price objective on shares of DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a research report on Thursday, April 9th. Canaccord Genuity Group reaffirmed a “buy” rating and issued a $200.00 price objective on shares of DigitalOcean in a research report on Friday, July 10th. Finally, Citizens Jmp boosted their price objective on shares of DigitalOcean from $83.00 to $105.00 and gave the stock a “market outperform” rating in a research note on Thursday, March 26th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average price target of $151.93.

Insider Activity

In other news, Director Hilary Schneider sold 4,338 shares of the company’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the transaction, the director owned 24,323 shares in the company, valued at $3,803,630.74. This represents a 15.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Matt Steinfort sold 25,000 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were 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 directly owned 573,272 shares of the company’s stock, valued at $87,423,980. The trade was a 4.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 39,338 shares of company stock worth $6,191,576 over the last ninety days. 0.96% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors have recently modified their holdings of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in DigitalOcean by 5.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock valued at $11,342,000 after purchasing an additional 16,162 shares during the period. Intech Investment Management LLC lifted its position in shares of DigitalOcean by 59.2% during the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock valued at $1,317,000 after buying an additional 14,655 shares in the last quarter. Amundi lifted its position in shares of DigitalOcean by 126,552.2% during the 2nd quarter. Amundi now owns 29,130 shares of the company’s stock valued at $827,000 after buying an additional 29,107 shares in the last quarter. Jump Financial LLC acquired a new stake in DigitalOcean in the 2nd quarter valued at $3,212,000. Finally, Qube Research & Technologies Ltd grew its stake in DigitalOcean by 69.7% in the 2nd quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock valued at $11,842,000 after acquiring an additional 170,339 shares during the period. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Stock Performance

The company has a market cap of $14.92 billion, a PE ratio of 62.43 and a beta of 1.57. The firm’s fifty day moving average is $152.37 and its 200 day moving average is $103.16. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. The firm had revenue of $257.90 million for the quarter, compared to analyst estimates of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business’s revenue was up 22.4% on a year-over-year basis. During the same period in the previous year, the company 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. As a group, research analysts predict that DigitalOcean Holdings, Inc. will post 0.56 EPS for the current fiscal year.

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.