DigitalOcean (NYSE:DOCN) Stock Price Target Lowered at Barclays

DigitalOcean (NYSE:DOCN) had its target price cut by research analysts at Barclays from $161.00 to $140.00 in a research report issued on Wednesday, Benzinga reports. The firm currently has an “overweight” rating on the stock. Barclays‘s target price points to a potential upside of 73.51% from the company’s previous close.

A number of other equities analysts have also issued reports on DOCN. Weiss Ratings lowered DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Canaccord Genuity Group reiterated a “buy” rating and set a $200.00 price target on shares of DigitalOcean in a research note on Friday, July 10th. Morgan Stanley cut their price objective on DigitalOcean from $175.00 to $150.00 and set an “overweight” rating on the stock in a report on Wednesday. Robert W. Baird assumed coverage on DigitalOcean in a research note on Tuesday, July 21st. They issued an “outperform” rating and a $165.00 price objective for the company. Finally, William Blair reaffirmed an “outperform” rating on shares of DigitalOcean in a report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and an average target price of $145.94.

DigitalOcean Stock Performance

NYSE:DOCN traded down $9.81 during trading hours on Wednesday, hitting $80.69. 3,216,895 shares of the company were exchanged, compared to its average volume of 3,531,464. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31. DigitalOcean has a 52-week low of $41.96 and a 52-week high of $187.50. The stock has a market capitalization of $8.42 billion, a price-to-earnings ratio of 36.81, a PEG ratio of 78.28 and a beta of 1.69. The company’s 50 day moving average price is $118.80 and its 200-day moving average price is $111.32.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings results on Tuesday, November 3rd. The company reported $0.45 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.13. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The business had revenue of $321.19 million during the quarter, compared to analysts’ expectations of $306.74 million. During the same quarter last year, the company posted $0.54 earnings per share. The business’s quarterly revenue was up 39.6% on a year-over-year basis. As a group, research analysts forecast that DigitalOcean will post 0.62 earnings per share for the current year.

Insider Activity at DigitalOcean

In related news, Director Warren Adelman sold 4,200 shares of the business’s stock in a transaction on 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 transaction, the director directly owned 67,433 shares in the company, valued at $8,362,366.33. The trade was a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction 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 directly owned 503,692 shares in the company, valued at approximately $53,255,355.16. The trade was a 1.95% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 22,641 shares of company stock worth $2,589,317 over the last three months. Company insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Parallel Advisors LLC grew its stake in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after purchasing an additional 129 shares during the period. Root Financial Partners LLC purchased a new position in shares of DigitalOcean during the 3rd quarter valued at approximately $31,000. Optiver Holding B.V. lifted its stake in shares of DigitalOcean by 1,063.9% in the 1st quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock valued at $36,000 after purchasing an additional 383 shares during the period. SSI Investment Management LLC acquired a new position in shares of DigitalOcean in the 2nd quarter valued at $37,000. Finally, Hilltop National Bank acquired a new position in shares of DigitalOcean in the 2nd quarter valued at $38,000. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean reported Q3 earnings of $0.45 per share, topping the $0.32 consensus, while revenue of $321.19 million exceeded estimates of $306.74 million and rose 39.6% year over year. The company also raised its 2026 outlook, which reportedly came in above expectations. DigitalOcean Q3 results and outlook
• Positive Sentiment: Management expects revenue growth of at least 60% in 2027. About 90% of AI-related customer revenue comes from customers already using DigitalOcean’s core cloud services, suggesting AI demand is building within its existing customer base. DigitalOcean long-term investor takeaways
• Negative Sentiment: Stifel lowered its price target for DOCN to $130. Separately, non-GAAP earnings declined, and reported EPS of $0.45 was below the $0.54 earned a year earlier, despite beating analyst estimates. Stifel lowers DigitalOcean price target

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud computing company that provides infrastructure and developer-focused services for startups, small and medium-sized businesses, and individual developers. Its platform is designed to simplify the deployment, management, and scaling of applications without requiring customers to build and operate extensive in-house infrastructure.

The company’s offerings include Droplets, its virtual machine service; managed Kubernetes; managed databases; object and block storage; networking tools; and application deployment services through App Platform.