DigitalOcean (NYSE:DOCN) Research Coverage Started at Truist Financial

Truist Financial started coverage on shares of DigitalOcean (NYSE:DOCN) in a report issued on Thursday morning, MarketBeat Ratings reports. The brokerage issued a buy rating and a $175.00 target price on the stock.

A number of other equities research analysts have also recently issued reports on the company. Weiss Ratings upgraded DigitalOcean from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, August 11th. Robert W. Baird assumed coverage on shares of DigitalOcean in a research note on Tuesday, July 21st. They issued an “outperform” rating and a $165.00 target price for the company. UBS Group lowered their target price on shares of DigitalOcean from $155.00 to $140.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. Oppenheimer set a $190.00 price target on shares of DigitalOcean in a research report on Wednesday, May 6th. Finally, Barclays upped their price target on shares of DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $152.81.

DigitalOcean Price Performance

Shares of NYSE DOCN opened at $111.50 on Thursday. 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 business has a 50-day moving average of $128.72 and a 200-day moving average of $115.41. The stock has a market capitalization of $11.64 billion, a price-to-earnings ratio of 50.91, a PEG ratio of 95.20 and a beta of 1.61. DigitalOcean has a fifty-two week low of $30.89 and a fifty-two week high of $187.50.

DigitalOcean (NYSE:DOCN) last released its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.19. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.The business had revenue of $281.18 million for the quarter, compared to analyst estimates of $279.03 million. During the same quarter in the prior year, the company posted $0.39 earnings per share. DigitalOcean’s 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, sell-side analysts predict that DigitalOcean will post 0.63 earnings per share for the current fiscal year.

Insider Transactions at DigitalOcean

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 position. The sale was disclosed in a document filed with the SEC, which is available through 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, CAO Cherie Barrett sold 4,456 shares of DigitalOcean stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the transaction, the chief accounting officer directly owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. This trade 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. In the last three months, insiders sold 18,656 shares of company stock worth $2,811,383. 0.96% of the stock is owned by company insiders.

Institutional Trading of DigitalOcean

Several hedge funds and other institutional investors have recently modified their holdings of the stock. State of New Jersey Common Pension Fund D bought a new position in shares of DigitalOcean during the fourth quarter worth approximately $2,358,000. New York State Teachers Retirement System raised its stake in DigitalOcean by 33.0% in the 4th quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock worth $2,373,000 after purchasing an additional 12,229 shares in the last quarter. Legato Capital Management LLC bought a new stake in DigitalOcean in the 4th quarter valued at about $1,365,000. Summit Creek Advisors LLC bought a new stake in shares of DigitalOcean in the fourth quarter valued at approximately $7,126,000. Finally, Wealth High Governance Asset Management Ltda. bought a new stake in shares of DigitalOcean during the 1st quarter valued at $8,986,000. Institutional investors own 49.77% of the company’s stock.

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.