Canaccord Genuity Group Has Lowered Expectations for DigitalOcean (NYSE:DOCN) Stock Price

DigitalOcean (NYSE:DOCN) had its price objective dropped by analysts at Canaccord Genuity Group from $200.00 to $180.00 in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm currently has a “buy” rating on the stock. Canaccord Genuity Group‘s price objective would suggest a potential upside of 113.63% from the company’s previous close.

Other equities analysts have also issued research reports about the stock. Citigroup cut their target price on shares of DigitalOcean from $190.00 to $160.00 and set a “buy” rating for the company in a research report on Wednesday. Robert W. Baird started coverage on shares of DigitalOcean in a research note on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price target on the stock. Stifel Nicolaus set a $130.00 price objective on shares of DigitalOcean in a report on Tuesday. Piper Sandler upgraded shares of DigitalOcean from a “neutral” rating to an “overweight” rating and reduced their price objective for the company from $142.00 to $126.00 in a research note on Wednesday, October 21st. Finally, Zacks Research upgraded shares of DigitalOcean from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 19th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $142.50.

DigitalOcean Stock Performance

Shares of NYSE:DOCN traded down $6.24 during mid-day trading on Wednesday, reaching $84.26. The company had a trading volume of 6,227,843 shares, compared to its average volume of 3,547,239. DigitalOcean has a one year low of $41.96 and a one year high of $187.50. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 1.14. The company’s 50-day moving average price is $118.80 and its 200-day moving average price is $111.32. The firm has a market cap of $8.79 billion, a price-to-earnings ratio of 38.47, a PEG ratio of 78.28 and a beta of 1.69.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Tuesday, November 3rd. The company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.13. The firm had revenue of $321.19 million for the quarter, compared to analyst estimates of $306.74 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The business’s revenue was up 39.6% on a year-over-year basis. During the same period in the previous year, the company posted $0.54 earnings per share. As a group, equities research analysts anticipate that DigitalOcean will post 0.62 EPS for the current fiscal year.

Insider Activity at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of the company’s 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 completion of the transaction, the chief financial officer directly owned 503,692 shares in the company, valued at approximately $53,255,355.16. This represents a 1.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through 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, CAO Cherie Barrett sold 4,456 shares of the stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $132.37, for a total value of $589,840.72. Following the transaction, the chief accounting officer owned 65,487 shares in the company, valued at $8,668,514.19. This trade represents a 6.37% 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. Insiders have sold a total of 22,641 shares of company stock valued at $2,589,317 over the last 90 days. 0.96% of the stock is owned by insiders.

Institutional Trading of DigitalOcean

Hedge funds have recently bought and sold shares of the company. Bank of America Corp DE bought a new position in DigitalOcean during the second quarter valued at approximately $241,945,000. First Trust Advisors LP lifted its holdings in shares of DigitalOcean by 9.3% in 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 during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of DigitalOcean in the 2nd quarter worth approximately $98,011,000. Principal Financial Group Inc. boosted its stake in shares of DigitalOcean by 155.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock valued at $95,080,000 after purchasing an additional 674,231 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its stake in shares of DigitalOcean by 18.6% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 580,462 shares of the company’s stock valued at $81,149,000 after purchasing an additional 90,897 shares in the last quarter. Institutional investors own 49.77% of the company’s stock.

More DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Third-quarter revenue rose 39.6% year over year to $321.2 million, ahead of estimates, while EPS of $0.45 beat the $0.32 consensus. DigitalOcean also raised its 2026 outlook, which was reported as exceeding expectations. Zacks Q3 earnings report
• Positive Sentiment: Longer-term growth prospects may be supporting the bullish case: one report says the company expects revenue growth of at least 60% in 2027, and that 90% of AI customer revenue comes from customers also using its core cloud services. The Motley Fool’s long-term takeaways
• Negative Sentiment: Several firms lowered their price targets, adding pressure after the results. Citigroup cut its target to $160 but kept a Buy rating, Barclays reduced its target to $140 and retained Overweight, and UBS lowered its target to $100 while maintaining Neutral. Stifel also cut its target, to $130. These revisions suggest analysts have moderated their expectations, even as some remain bullish. UBS target update
• Negative Sentiment: Despite beating estimates, quarterly EPS was down from $0.54 a year earlier, and a separate report noted a decline in non-GAAP earnings. That year-over-year earnings softness may temper the positive revenue and outlook news. Q3 non-GAAP earnings and outlook

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.