DigitalOcean (NYSE:DOCN) Trading 7.9% Higher – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN) shot up 7.9% on Wednesday . The stock traded as high as $159.90 and last traded at $161.8010. 866,605 shares were traded during mid-day trading, a decline of 79% from the average session volume of 4,031,174 shares. The stock had previously closed at $150.02.

Analysts Set New Price Targets

Several research firms have recently weighed in on DOCN. The Goldman Sachs Group lifted their price objective on DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Citizens Jmp lifted their price objective on DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research note on Thursday, March 26th. Canaccord Genuity Group raised their target price on DigitalOcean from $120.00 to $200.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Oppenheimer set a $190.00 target price on DigitalOcean in a report on Wednesday, May 6th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of DigitalOcean in a report on Friday, March 27th. Nine investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $142.23.

DigitalOcean Stock Up 6.7%

The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. The firm has a fifty day simple moving average of $99.72 and a 200-day simple moving average of $68.82. The company has a market capitalization of $16.71 billion, a PE ratio of 70.15 and a beta of 1.42.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share (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 company had revenue of $257.91 million for the quarter, compared to the consensus estimate of $249.76 million. During the same period in the previous year, the business earned $0.56 EPS. DigitalOcean’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. Equities research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.55 EPS for the current fiscal year.

Insiders Place Their Bets

In other DigitalOcean news, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $156.38, for a total transaction of $678,376.44. Following the sale, the director directly owned 24,323 shares in the company, valued at $3,803,630.74. The trade was a 15.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of DigitalOcean 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 sale, the chief financial officer owned 573,272 shares in the company, valued at $87,423,980. This represents a 4.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 71,338 shares of company stock worth $6,803,816 in the last three months. 0.96% of the stock is owned by insiders.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors have recently made changes to their positions in the company. Bullseye Asset Management LLC boosted its position in DigitalOcean by 267.8% during the 3rd quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company’s stock valued at $3,392,000 after purchasing an additional 72,300 shares during the period. State of New Jersey Common Pension Fund D acquired a new position in DigitalOcean during the 4th quarter valued at approximately $2,358,000. New York State Teachers Retirement System boosted its position in DigitalOcean by 33.0% during the 4th quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock valued at $2,373,000 after purchasing an additional 12,229 shares during the period. Van Berkom & Associates Inc. boosted its position in DigitalOcean by 33.1% during the 3rd quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company’s stock worth $53,460,000 after acquiring an additional 389,161 shares during the period. Finally, Penserra Capital Management LLC boosted its position in DigitalOcean by 27.2% during the 3rd quarter. Penserra Capital Management LLC now owns 293,132 shares of the company’s stock worth $10,013,000 after acquiring an additional 62,725 shares during the period. 49.77% of the stock is currently owned by institutional investors.

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.