DigitalOcean (NYSE:DOCN) Shares Up 7% – What’s Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares traded up 7% on Tuesday . The company traded as high as $132.95 and last traded at $131.9870. Approximately 369,369 shares changed hands during trading, a decline of 90% from the average daily volume of 3,858,257 shares. The stock had previously closed at $123.32.

Wall Street Analyst Weigh In

DOCN has been the subject of a number of analyst reports. Canaccord Genuity Group reiterated a “buy” rating and issued a $200.00 price target on shares of DigitalOcean in a research note on Friday. Piper Sandler boosted their price objective on DigitalOcean from $98.00 to $155.00 and gave the company a “neutral” rating in a research report on Tuesday, May 5th. The Goldman Sachs Group increased their target price on DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Morgan Stanley lifted their target price on DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Finally, Oppenheimer set a $190.00 price target on DigitalOcean in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, DigitalOcean presently has a consensus rating of “Moderate Buy” and an average price target of $145.36.

DigitalOcean Price Performance

The firm has a market cap of $13.35 billion, a PE ratio of 55.95 and a beta of 1.57. The firm has a fifty day simple moving average of $156.90 and a two-hundred day simple moving average of $99.37. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46.

DigitalOcean (NYSE:DOCN) last issued 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. The business had revenue of $257.90 million for 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%.The company’s revenue for the quarter was up 22.4% on a year-over-year basis. During the same period in the prior year, the firm 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. Equities analysts predict that DigitalOcean Holdings, Inc. will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction on Friday, May 15th. The shares were 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 directly owned 573,272 shares of the company’s stock, valued at $87,423,980. This trade represents a 4.18% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $156.38, for a total transaction of $678,376.44. Following the completion of the sale, the director owned 24,323 shares in the company, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 39,338 shares of company stock valued at $6,191,576 in the last quarter. 0.96% of the stock is owned by company insiders.

Institutional Investors Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in DigitalOcean by 5.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock valued at $11,342,000 after acquiring an additional 16,162 shares during the last quarter. Intech Investment Management LLC lifted its stake in DigitalOcean by 59.2% in the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after acquiring an additional 14,655 shares during the period. Amundi boosted its stake in shares of DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company’s stock valued at $827,000 after purchasing an additional 29,107 shares in the last quarter. Jump Financial LLC bought a new stake in DigitalOcean during the 2nd quarter valued at $3,212,000. Finally, Qube Research & Technologies Ltd grew its stake in DigitalOcean by 69.7% in the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock valued at $11,842,000 after purchasing an additional 170,339 shares during the last quarter. 49.77% of the stock is currently owned by hedge funds and other 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.