DigitalOcean’s (DOCN) “Buy” Rating Reaffirmed at Canaccord Genuity Group

Canaccord Genuity Group reiterated their buy rating on shares of DigitalOcean (NYSE:DOCN) in a research report report published on Friday,Benzinga reports. They currently have a $200.00 price target on the stock.

Several other equities research analysts also recently weighed in on DOCN. Oppenheimer set a $190.00 target price on shares of DigitalOcean in a research note on Wednesday, May 6th. Citizens Jmp upped their price target on DigitalOcean from $83.00 to $105.00 and gave the stock a “market outperform” rating in a research report on Thursday, March 26th. Barclays increased their price objective on DigitalOcean from $183.00 to $184.00 and gave the company an “overweight” rating in a report on Tuesday. Piper Sandler raised their price objective on DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 5th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a research note on Wednesday, June 24th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $145.36.

DigitalOcean Stock Down 7.5%

Shares of DOCN stock traded down $10.52 during mid-day trading on Friday, hitting $130.32. 2,356,601 shares of the stock traded hands, compared to its average volume of 3,593,360. The stock has a market cap of $13.60 billion, a P/E ratio of 56.91 and a beta of 1.57. The stock’s fifty day moving average is $156.37 and its two-hundred day moving average is $98.50. DigitalOcean has a 52-week low of $25.56 and a 52-week high of $187.50. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data 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 the consensus estimate of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The company’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.56 EPS. 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 analysts predict that DigitalOcean will post 0.55 EPS for the current year.

Insider Buying and Selling

In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of the firm’s stock in a transaction on Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the transaction, the director owned 24,323 shares of the company’s stock, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the sale, the chief financial officer 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. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 39,338 shares of company stock worth $6,191,576 in the last 90 days. 0.96% of the stock is currently owned by company insiders.

Institutional Trading of DigitalOcean

Several large investors have recently added to or reduced their stakes in DOCN. EverSource Wealth Advisors LLC lifted its holdings in shares of DigitalOcean by 14.8% during the first quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company’s stock worth $47,000 after purchasing an additional 71 shares during the period. Parallel Advisors LLC increased its holdings in DigitalOcean by 66.2% in the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares during the period. Maryland State Retirement & Pension System increased its holdings in DigitalOcean by 1.9% in the 4th quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock worth $481,000 after buying an additional 185 shares during the period. Hilltop National Bank purchased a new position in DigitalOcean during the 2nd quarter worth approximately $38,000. Finally, Allworth Financial LP raised its position in DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after buying an additional 255 shares during the last quarter. Hedge funds and other 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.