DigitalOcean (NYSE:DOCN) Sets New 52-Week High – Should You Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price reached a new 52-week high during trading on Thursday . The company traded as high as $165.99 and last traded at $161.0980, with a volume of 733366 shares. The stock had previously closed at $160.11.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on DOCN shares. Stifel Nicolaus set a $57.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. Canaccord Genuity Group lifted their price objective on DigitalOcean from $120.00 to $200.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Barclays lifted their price objective on DigitalOcean from $105.00 to $183.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. UBS Group lifted their price objective on DigitalOcean to $175.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 12th. Finally, Bank of America lifted their price objective on DigitalOcean from $103.00 to $107.00 and gave the stock a “buy” rating in a research note on Thursday, April 9th. Nine investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $142.23.

DigitalOcean Trading Up 0.7%

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 business has a 50-day moving average of $101.77 and a two-hundred day moving average of $69.68. The firm has a market capitalization of $16.83 billion, a price-to-earnings ratio of 70.45 and a beta of 1.42.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.17. The company had revenue of $257.91 million for the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The company’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.56 earnings per share. 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 predict that DigitalOcean Holdings, Inc. will post 0.55 EPS for the current fiscal year.

Insider Transactions at DigitalOcean

In other DigitalOcean news, CAO Cherie Barrett sold 22,000 shares of the business’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the transaction, the chief accounting officer directly owned 62,469 shares of the company’s stock, valued at approximately $3,421,427.13. The trade was a 26.05% 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, CFO Matt Steinfort sold 25,000 shares of the company’s stock in a transaction 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 transaction, the chief financial officer directly owned 573,272 shares in the company, valued at approximately $87,423,980. This represents a 4.18% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 71,338 shares of company stock valued at $6,803,816 in the last three months. 0.96% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC lifted its stake in shares of DigitalOcean by 14.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company’s stock valued at $47,000 after purchasing an additional 71 shares during the period. Parallel Advisors LLC raised its stake in DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares during the period. Maryland State Retirement & Pension System raised its stake in DigitalOcean by 1.9% during the 4th quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock worth $481,000 after buying an additional 185 shares during the period. Allworth Financial LP increased its holdings in DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares in the last quarter. Finally, CWM LLC increased its holdings in DigitalOcean by 1.3% during the 4th quarter. CWM LLC now owns 20,971 shares of the company’s stock worth $1,009,000 after purchasing an additional 270 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.