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

DigitalOcean (NYSE:DOCN) had its price target decreased by Barclays from $161.00 to $140.00 in a research note released on Wednesday,Benzinga reports. Barclays currently has an overweight rating on the stock.

DOCN has been the topic of a number of other reports. Canaccord Genuity Group restated a “buy” rating and issued a $200.00 price objective on shares of DigitalOcean in a research note on Friday, July 10th. William Blair reiterated an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Stifel Nicolaus set a $130.00 target price on shares of DigitalOcean in a research note on Tuesday. KeyCorp reiterated an “overweight” rating on shares of DigitalOcean in a research note on Tuesday, October 13th. Finally, UBS Group lowered their price target on shares of DigitalOcean from $125.00 to $105.00 and set a “neutral” rating on the stock in a research report on Monday, October 26th. 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 company. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $142.50.

DigitalOcean Stock Performance

Shares of DigitalOcean stock opened at $84.26 on Wednesday. The business’s fifty day simple moving average is $118.24 and its 200 day simple moving average is $111.48. The company has a current ratio of 1.15, a quick ratio of 1.31 and a debt-to-equity ratio of 0.61. DigitalOcean has a 12 month low of $41.96 and a 12 month high of $187.50. The firm has a market capitalization of $8.79 billion, a P/E ratio of 271.80, a price-to-earnings-growth ratio of 78.90 and a beta of 1.69.

DigitalOcean (NYSE:DOCN) last released its earnings results on Tuesday, November 3rd. The company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $0.13. DigitalOcean had a net margin of 3.11% and a return on equity of 15.01%. The firm had revenue of $321.19 million during the quarter, compared to the consensus estimate of $306.74 million. During the same period in the prior year, the firm earned $0.54 EPS. The company’s revenue was up 39.6% compared to the same quarter last year. As a group, analysts anticipate that DigitalOcean will post 0.62 EPS for the current year.

Insider Buying and Selling

In other news, CAO Cherie Barrett sold 3,985 shares of the business’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 $421,334.05. Following the completion of the transaction, the chief accounting officer directly owned 58,399 shares in the company, valued at $6,174,526.27. The trade was a 6.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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. Also, Director Warren J. Adelman sold 4,200 shares of the business’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $124.01, for a total value of $520,842.00. Following the transaction, the director owned 67,433 shares of the company’s stock, valued at approximately $8,362,366.33. The trade was a 5.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 22,641 shares of company stock valued at $2,589,317. Corporate insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors have recently made changes to their positions in DOCN. Bank of America Corp DE purchased a new stake in DigitalOcean in the 2nd quarter worth approximately $241,945,000. First Trust Advisors LP grew its holdings in shares of DigitalOcean by 9.3% during the first quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock valued at $123,622,000 after buying an additional 122,675 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of DigitalOcean in the second quarter worth $98,011,000. Principal Financial Group Inc. raised its position in DigitalOcean by 155.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after buying an additional 674,231 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC grew its stake in shares of DigitalOcean by 18.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 580,462 shares of the company’s stock worth $81,149,000 after acquiring an additional 90,897 shares during the period. Institutional investors own 49.77% of the company’s stock.

Trending Headlines about DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q3 revenue rose 39.6% year over year to $321.2 million, topping estimates of $306.7 million. Earnings of $0.45 per share also beat the $0.32 consensus, and the company raised its 2026 outlook. DigitalOcean Announces Third Quarter 2026 Financial Results
• Positive Sentiment: Management’s longer-term growth outlook drew attention: DigitalOcean expects revenue growth of at least 60% in 2027, while 90% of AI customer revenue comes from existing core-cloud consumers—suggesting AI demand is extending its established customer base. DigitalOcean: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Several firms cut their price targets after the results: Canaccord lowered its target to $180, Citi to $160, Barclays to $140, UBS to $100, and Stifel to $130. Canaccord and Citi maintained buy ratings, Barclays remained overweight, and UBS kept a neutral rating. The broad revisions may have added pressure despite the earnings beat. Canaccord price-target report UBS price-target report
• Negative Sentiment: Although quarterly EPS beat expectations, it was down from $0.54 a year earlier, a potential counterpoint to the strong revenue growth. DigitalOcean Q3 earnings and revenues top estimates

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.