DigitalOcean (NYSE:DOCN) Trading 11% Higher on Analyst Upgrade

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price rose 11% during mid-day trading on Tuesday after Robert W. Baird upgraded the stock to a strong-buy rating. The company traded as high as $132.79 and last traded at $132.1740. 537,840 shares traded hands during trading, a decline of 86% from the average session volume of 3,834,250 shares. The stock had previously closed at $119.09.

Several other equities research analysts have also commented on the stock. Citigroup boosted their price target on shares of DigitalOcean from $180.00 to $185.00 and gave the stock a “buy” rating in a report on Wednesday, July 8th. Oppenheimer set a $190.00 price objective on shares of DigitalOcean in a report on Wednesday, May 6th. UBS Group dropped their target price on shares of DigitalOcean from $175.00 to $155.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 8th. The Goldman Sachs Group boosted their target price on shares of DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Finally, Morgan Stanley upped their price target on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Buy” and an average price target of $151.93.

Insider Activity at DigitalOcean

In related news, Director Hilary Schneider sold 4,338 shares of the stock in a transaction 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 completion of the transaction, the director directly owned 24,323 shares of the company’s stock, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the completion of the transaction, the chief financial officer owned 538,414 shares in the company, valued at $91,568,068.98. The trade was a 1.82% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 39,338 shares of company stock valued at $6,191,576 over the last quarter. 0.96% of the stock is owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in DigitalOcean by 5.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock valued at $11,342,000 after acquiring an additional 16,162 shares during the last quarter. Intech Investment Management LLC boosted its holdings in shares of DigitalOcean by 59.2% during the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after purchasing an additional 14,655 shares during the last quarter. Amundi boosted its holdings in shares of DigitalOcean by 126,552.2% during the 2nd quarter. Amundi now owns 29,130 shares of the company’s stock worth $827,000 after purchasing an additional 29,107 shares during the last quarter. Jump Financial LLC purchased a new stake in shares of DigitalOcean in the second quarter valued at approximately $3,212,000. Finally, Qube Research & Technologies Ltd grew its position in shares of DigitalOcean by 69.7% in the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock valued at $11,842,000 after purchasing an additional 170,339 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean Stock Performance

The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. The stock has a market cap of $14.92 billion, a price-to-earnings ratio of 62.43 and a beta of 1.57. The firm has a fifty day moving average of $152.37 and a 200 day moving average of $103.16.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 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 return on equity of 88.86% and a net margin of 24.97%.The firm’s revenue was up 22.4% compared to the same quarter last year. During the same quarter last year, the business posted $0.56 earnings per share. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. As a group, sell-side analysts forecast that DigitalOcean Holdings, Inc. will post 0.56 EPS for the current year.

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.