DigitalOcean Holdings, Inc. (NYSE:DOCN) Stock Has Average Target Price of $152.81

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) have been assigned a consensus recommendation of “Moderate Buy” from the seventeen brokerages that are presently covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation, twelve have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price objective among analysts that have issued ratings on the stock in the last year is $152.81.

A number of analysts have commented on DOCN shares. Citigroup boosted their price target on shares of DigitalOcean from $185.00 to $190.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Weiss Ratings lowered shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Canaccord Genuity Group reissued a “buy” rating and set a $200.00 target price on shares of DigitalOcean in a report on Friday, July 10th. Barclays upped their target price on DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 5th. Finally, Robert W. Baird initiated coverage on DigitalOcean in a research note on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price target for the company.

Insider Activity at DigitalOcean

In other DigitalOcean news, Director Warren J. Adelman sold 4,200 shares of the company’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $124.01, for a total transaction of $520,842.00. Following the completion of the sale, the director directly owned 67,433 shares of the company’s stock, valued at approximately $8,362,366.33. This represents a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the completion of the sale, the chief financial officer owned 503,692 shares of the company’s stock, valued at approximately $53,255,355.16. This trade represents a 1.95% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders sold a total of 22,641 shares of company stock valued at $2,589,317 over the last ninety days. Insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DOCN. Bank of America Corp DE acquired a new position in shares of DigitalOcean during the 2nd quarter valued at about $241,945,000. First Trust Advisors LP lifted its holdings in DigitalOcean by 9.3% in the 1st quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock worth $123,622,000 after purchasing an additional 122,675 shares during the last quarter. Principal Financial Group Inc. boosted its position in DigitalOcean by 155.3% during the first quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after purchasing an additional 674,231 shares during the period. Allspring Global Investments Holdings LLC lifted its stake in shares of DigitalOcean by 81.3% in the first quarter. Allspring Global Investments Holdings LLC now owns 683,707 shares of the company’s stock worth $59,947,000 after buying an additional 306,529 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of DigitalOcean during the 2nd quarter worth $98,011,000. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean Trading Down 2.5%

Shares of DOCN opened at $136.26 on Tuesday. DigitalOcean has a one year low of $33.69 and a one year high of $187.50. The stock has a 50-day moving average price of $124.24 and a 200 day moving average price of $125.40. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31. The company has a market capitalization of $14.22 billion, a P/E ratio of 62.22, a P/E/G ratio of 118.83 and a beta of 1.57.

DigitalOcean (NYSE:DOCN) last released its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.19. The company had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company’s revenue was up 28.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.39 EPS. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Sell-side analysts forecast that DigitalOcean will post 0.64 EPS for the current fiscal year.

About DigitalOcean

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and medium-sized businesses. Its platform offers on-demand infrastructure and developer tools intended to simplify the process of building, deploying, and scaling applications.

The company’s products include virtual machines known as Droplets, managed Kubernetes, managed databases, object storage through Spaces, block storage, networking services, and App Platform, a platform-as-a-service offering for application deployment.