DigitalOcean (NYSE:DOCN) Earns “Buy” Rating from Canaccord Genuity Group

DigitalOcean (NYSE:DOCN)‘s stock had its “buy” rating restated by research analysts at Canaccord Genuity Group in a research report issued on Friday,Benzinga reports. They currently have a $200.00 target price on the stock. Canaccord Genuity Group’s target price suggests a potential upside of 41.72% from the stock’s previous close.

Other research analysts also recently issued reports about the stock. Citigroup increased their target price on shares of DigitalOcean from $180.00 to $185.00 and gave the company a “buy” rating in a research report on Wednesday. Oppenheimer set a $190.00 price target on shares of DigitalOcean in a research report on Wednesday, May 6th. KeyCorp began coverage on shares of DigitalOcean in a research note on Tuesday, June 2nd. They issued an “overweight” rating and a $200.00 price objective for the company. UBS Group dropped their price objective on DigitalOcean from $175.00 to $155.00 and set a “neutral” rating on the stock in a report on Wednesday. Finally, Piper Sandler lifted their target price on DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, DigitalOcean presently has an average rating of “Moderate Buy” and an average price target of $145.36.

DigitalOcean Price Performance

DOCN stock opened at $141.13 on Friday. The business has a 50 day moving average price of $155.69 and a 200 day moving average price of $98.28. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. The stock has a market cap of $14.73 billion, a price-to-earnings ratio of 61.63 and a beta of 1.57. DigitalOcean has a fifty-two week low of $25.56 and a fifty-two week high of $187.50.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The company had revenue of $257.90 million for the quarter, compared to analyst estimates of $249.76 million. During the same period in the prior year, the firm posted $0.56 earnings per share. The firm’s revenue was up 22.4% on a year-over-year basis. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Equities research analysts anticipate that DigitalOcean will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the transaction, the director owned 24,323 shares of the company’s stock, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total value of $1,700,700.00. Following 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 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 have sold a total of 39,338 shares of company stock valued at $6,191,576 over the last ninety days. 0.96% of the stock is owned by insiders.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors have recently bought and sold shares of the company. Fulton Bank N.A. purchased a new position in shares of DigitalOcean during the 2nd quarter worth approximately $597,000. Focus Financial Network Inc. acquired a new stake in DigitalOcean during the 2nd quarter valued at $227,000. MRA Advisory Group purchased a new position in DigitalOcean during the second quarter worth $1,460,000. FNY Investment Advisers LLC purchased a new position in DigitalOcean during the second quarter worth $449,000. Finally, GAMMA Investing LLC raised its holdings in shares of DigitalOcean by 18.0% in the second quarter. GAMMA Investing LLC now owns 2,608 shares of the company’s stock worth $410,000 after acquiring an additional 398 shares during the last quarter. 49.77% of the stock is owned by institutional investors and hedge funds.

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.