DigitalOcean (NYSE:DOCN) Upgraded at Robert W. Baird

Robert W. Baird upgraded shares of DigitalOcean (NYSE:DOCN) to a strong-buy rating in a report released on Tuesday,Zacks.com reports.

A number of other research firms also recently issued reports on DOCN. KeyCorp began coverage on shares of DigitalOcean in a research report on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 price target for the company. Weiss Ratings raised DigitalOcean from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, July 10th. UBS Group reduced their price objective on DigitalOcean from $175.00 to $155.00 and set a “neutral” rating for the company in a report on Wednesday, July 8th. Citizens Jmp boosted their target price on DigitalOcean from $83.00 to $105.00 and gave the stock a “market outperform” rating in a research report on Thursday, March 26th. Finally, Bank of America upped their target price on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a report on Thursday, April 9th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, DigitalOcean currently has an average rating of “Buy” and a consensus target price of $151.93.

DigitalOcean Stock Performance

NYSE:DOCN opened at $131.55 on Tuesday. The firm’s fifty day simple moving average is $151.83 and its 200-day simple moving average is $103.74. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92. The stock has a market cap of $13.73 billion, a PE ratio of 57.44 and a beta of 1.57. DigitalOcean has a fifty-two week low of $25.56 and a fifty-two week high of $187.50.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm had revenue of $257.90 million during the quarter, compared to analysts’ expectations of $249.76 million. During the same quarter last year, the business earned $0.56 earnings per share. The business’s revenue for the quarter was up 22.4% compared to the same quarter last year. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Analysts expect that DigitalOcean will post 0.56 earnings per share for the current fiscal year.

Insider Transactions at DigitalOcean

In related news, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the completion of the sale, the chief financial officer owned 538,414 shares in the company, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed 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, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction 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 disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 39,338 shares of company stock valued at $6,191,576. 0.96% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors and hedge funds have recently bought and sold shares of DOCN. Fuller & Thaler Asset Management Inc. increased its holdings in shares of DigitalOcean by 11.6% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock worth $116,467,000 after buying an additional 252,303 shares during the last quarter. Lazard Asset Management LLC raised its holdings in shares of DigitalOcean by 34.5% during the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after buying an additional 426,264 shares during the period. Van Berkom & Associates Inc. raised its holdings in shares of DigitalOcean by 2.9% during the 4th quarter. Van Berkom & Associates Inc. now owns 1,610,671 shares of the company’s stock valued at $77,505,000 after buying an additional 45,680 shares during the period. First Trust Advisors LP lifted its position in DigitalOcean by 9.3% during the 1st quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock worth $123,622,000 after acquiring an additional 122,675 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its position in DigitalOcean by 2.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company’s stock worth $65,432,000 after acquiring an additional 31,682 shares in the last quarter. Institutional investors and hedge funds 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.