Citigroup Boosts DigitalOcean (NYSE:DOCN) Price Target to $180.00

DigitalOcean (NYSE:DOCN) had its price target hoisted by analysts at Citigroup from $115.00 to $180.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Citigroup’s target price would indicate a potential upside of 9.32% from the stock’s previous close.

Other equities research analysts have also recently issued research reports about the stock. Stifel Nicolaus set a $57.00 price target on shares of DigitalOcean in a report on Tuesday, February 24th. Oppenheimer set a $190.00 price objective on DigitalOcean in a report on Wednesday. Citizens Jmp boosted their target price on DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research note on Thursday, March 26th. Bank of America upped their price target on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research report on Thursday, April 9th. Finally, Morgan Stanley increased their price target on DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research note on Wednesday. Nine investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, DigitalOcean presently has a consensus rating of “Moderate Buy” and a consensus target price of $141.08.

DigitalOcean Price Performance

Shares of NYSE:DOCN opened at $164.65 on Thursday. The company has a market capitalization of $17.18 billion, a P/E ratio of 71.90 and a beta of 1.42. The company’s 50-day moving average is $83.54 and its 200 day moving average is $62.24. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.69 and a current ratio of 1.46. DigitalOcean has a fifty-two week low of $25.56 and a fifty-two week high of $164.77.

DigitalOcean (NYSE:DOCN) last posted 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 business had revenue of $257.91 million during 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 firm’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter last year, the company 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. On average, equities research analysts forecast that DigitalOcean will post 0.45 earnings per share for the current year.

Insider Buying and Selling

In other DigitalOcean news, CAO Cherie Barrett sold 22,000 shares of the business’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the sale, the chief accounting officer owned 62,469 shares of the company’s stock, valued at $3,421,427.13. The trade was a 26.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Matt Steinfort sold 20,000 shares of the stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total value of $1,108,000.00. Following the sale, the chief financial officer owned 545,916 shares in the company, valued at approximately $30,243,746.40. This represents a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.96% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Bullseye Asset Management LLC grew its holdings in shares of DigitalOcean by 267.8% during the third quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company’s stock worth $3,392,000 after purchasing an additional 72,300 shares in the last quarter. State of New Jersey Common Pension Fund D purchased a new stake in DigitalOcean in the fourth quarter valued at approximately $2,358,000. Penserra Capital Management LLC raised its stake in DigitalOcean by 27.2% in the third quarter. Penserra Capital Management LLC now owns 293,132 shares of the company’s stock valued at $10,013,000 after purchasing an additional 62,725 shares in the last quarter. Segall Bryant & Hamill LLC bought a new stake in DigitalOcean during the third quarter valued at approximately $8,951,000. Finally, Van Berkom & Associates Inc. lifted its position in DigitalOcean by 33.1% during the third quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock valued at $53,460,000 after purchasing an additional 389,161 shares during the last quarter. Hedge funds and other institutional investors own 49.77% of the company’s stock.

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.