DigitalOcean (NYSE:DOCN) Stock Rating Raised to Strong-Buy at Zacks Research

Zacks Research upgraded shares of DigitalOcean (NYSE:DOCN) from a hold rating to a strong-buy rating in a research report released on Monday morning,Zacks reports.

A number of other research firms also recently weighed in on DOCN. Oppenheimer raised their price target on shares of DigitalOcean from $190.00 to $220.00 and gave the company an “outperform” rating in a report on Wednesday, October 14th. Barclays upped their price objective on shares of DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a report on Wednesday, August 5th. Citigroup reiterated a “market outperform” rating on shares of DigitalOcean in a report on Thursday, October 15th. Piper Sandler raised shares of DigitalOcean from a “neutral” rating to an “overweight” rating and set a $126.00 target price on the stock in a research report on Wednesday. Finally, Truist Financial started coverage on DigitalOcean in a report on Thursday, August 27th. They set a “buy” rating and a $175.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $152.88.

DigitalOcean Trading Down 0.8%

Shares of NYSE DOCN opened at $99.54 on Monday. The stock has a market cap of $10.39 billion, a price-to-earnings ratio of 45.45, a PEG ratio of 85.34 and a beta of 1.70. The business has a 50 day simple moving average of $124.02 and a 200 day simple moving average of $130.32. DigitalOcean has a 52 week low of $37.83 and a 52 week high of $187.50. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.19. The firm had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company’s revenue was up 28.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.39 earnings per share. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. On average, research analysts predict that DigitalOcean will post 0.64 earnings per share for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total value of $1,057,300.00. Following the transaction, the chief financial officer directly owned 503,692 shares in the company, valued at approximately $53,255,355.16. The trade was a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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, CAO Cherie Barrett sold 3,985 shares of DigitalOcean stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total value of $421,334.05. Following the completion of the transaction, the chief accounting officer owned 58,399 shares in the company, valued at $6,174,526.27. The trade was a 6.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 sold 22,641 shares of company stock worth $2,589,317 over the last ninety days. Company insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several hedge funds have recently added to or reduced their stakes in DOCN. Nisa Investment Advisors LLC increased its holdings in shares of DigitalOcean by 18.4% during the 3rd quarter. Nisa Investment Advisors LLC now owns 1,436 shares of the company’s stock worth $192,000 after purchasing an additional 223 shares during the period. Diversify Advisory Services LLC raised its position in shares of DigitalOcean by 14.3% during the third quarter. Diversify Advisory Services LLC now owns 10,509 shares of the company’s stock valued at $1,402,000 after buying an additional 1,314 shares during the last quarter. Vontobel Holding Ltd. raised its position in shares of DigitalOcean by 0.9% during the third quarter. Vontobel Holding Ltd. now owns 17,934 shares of the company’s stock valued at $2,392,000 after buying an additional 156 shares during the last quarter. TD Waterhouse Canada Inc. raised its position in shares of DigitalOcean by 32,000.0% during the third quarter. TD Waterhouse Canada Inc. now owns 321 shares of the company’s stock valued at $45,000 after buying an additional 320 shares during the last quarter. Finally, NFSG Corp raised its position in shares of DigitalOcean by 25.6% during the third quarter. NFSG Corp now owns 1,105 shares of the company’s stock valued at $147,000 after buying an additional 225 shares during the last quarter. Institutional investors own 49.77% of the company’s stock.

About DigitalOcean

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.