DigitalOcean (NYSE:DOCN) Rating Increased to Strong-Buy at KeyCorp

DigitalOcean (NYSE:DOCN) was upgraded by equities research analysts at KeyCorp to a “strong-buy” rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other equities research analysts have also recently commented on the company. UBS Group raised their price objective on DigitalOcean to $175.00 and gave the company a “neutral” rating in a research note on Tuesday, May 12th. Canaccord Genuity Group raised their price objective on DigitalOcean from $120.00 to $200.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Stifel Nicolaus set a $57.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. Bank of America raised their price objective on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. Finally, Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $146.36.

DigitalOcean Trading Down 0.4%

NYSE DOCN opened at $172.67 on Tuesday. The business has a 50 day simple moving average of $115.48 and a 200 day simple moving average of $76.04. DigitalOcean has a one year low of $25.56 and a one year high of $177.00. The stock has a market capitalization of $18.02 billion, a P/E ratio of 75.40 and a beta of 1.60. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46.

DigitalOcean (NYSE:DOCN) last released its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business had revenue of $257.91 million during the quarter, compared to analysts’ expectations of $249.76 million. During the same quarter last year, the firm posted $0.56 earnings per share. The firm’s revenue was up 22.4% on a year-over-year basis. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. Research analysts expect that DigitalOcean will post 0.55 earnings per share for the current year.

Insider Buying and Selling

In other DigitalOcean news, CFO Matt Steinfort sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the completion of the sale, the chief financial officer owned 573,272 shares of the company’s stock, valued at approximately $87,423,980. This trade represents a 4.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the transaction, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of DigitalOcean by 5.0% during the third quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company’s stock valued at $319,836,000 after buying an additional 442,617 shares during the last quarter. Fuller & Thaler Asset Management Inc. boosted its position in shares of DigitalOcean by 11.6% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock valued at $116,467,000 after buying an additional 252,303 shares during the last quarter. Lazard Asset Management LLC boosted its position in shares of DigitalOcean by 34.5% during the second 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 last quarter. Van Berkom & Associates Inc. boosted its position in shares of DigitalOcean by 2.9% during the fourth 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 last quarter. Finally, First Trust Advisors LP boosted its position 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. 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.