DigitalOcean (NYSE:DOCN) Hits New 1-Year High – Time to Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) reached a new 52-week high during trading on Monday . The company traded as high as $185.92 and last traded at $181.6820, with a volume of 2040168 shares trading hands. The stock had previously closed at $170.44.

Wall Street Analyst Weigh In

DOCN has been the subject of a number of research analyst reports. Bank of America upped their price objective on shares of DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. Morgan Stanley upped their price objective on shares of DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of DigitalOcean in a research note on Friday, March 27th. Royal Bank Of Canada set a $60.00 target price on DigitalOcean in a report on Tuesday, February 24th. Finally, Cantor Fitzgerald boosted their target price on DigitalOcean from $68.00 to $83.00 and gave the stock an “overweight” rating in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $146.36.

DigitalOcean Stock Up 6.1%

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 market cap of $18.88 billion, a PE ratio of 78.99 and a beta of 1.59. The stock has a fifty day moving average price of $131.28 and a 200-day moving average price of $84.10.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. The firm had revenue of $257.91 million during the quarter, compared to analysts’ expectations of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.DigitalOcean’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.56 EPS. 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 Holdings, Inc. will post 0.54 EPS for the current year.

Insider Buying and Selling

In other DigitalOcean news, CFO Matt Steinfort sold 25,000 shares of the company’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 transaction, the chief financial officer owned 573,272 shares in the company, valued at $87,423,980. This represents a 4.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Hilary Schneider sold 4,338 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the transaction, the director 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 SEC filing for this sale provides additional information. In the last 90 days, insiders sold 39,338 shares of company stock valued at $6,191,576. 0.96% of the stock is owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Institutional investors and hedge funds have recently made changes to their positions in the business. Parallel Advisors LLC raised its position in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after acquiring an additional 129 shares in the last quarter. Optiver Holding B.V. raised its position in shares of DigitalOcean by 1,063.9% during the 1st quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock valued at $36,000 after acquiring an additional 383 shares in the last quarter. Norris Financial Group LLC acquired a new stake in shares of DigitalOcean during the 1st quarter valued at approximately $7,234,000. Edgestream Partners L.P. acquired a new stake in shares of DigitalOcean during the 1st quarter valued at approximately $3,119,000. Finally, Janus Henderson Group PLC raised its position in shares of DigitalOcean by 3.8% during the 1st quarter. Janus Henderson Group PLC now owns 33,376 shares of the company’s stock valued at $2,864,000 after acquiring an additional 1,235 shares in the last quarter. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

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.