DigitalOcean (NYSE:DOCN) Stock Price Down 7.2% – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price was down 7.2% during mid-day trading on Monday . The company traded as low as $159.72 and last traded at $160.7180. 894,834 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 3,829,418 shares. The stock had previously closed at $173.27.

Wall Street Analyst Weigh In

DOCN has been the topic of several recent research reports. Citizens Jmp upped their price objective on DigitalOcean from $83.00 to $105.00 and gave the stock a “market outperform” rating in a research report on Thursday, March 26th. Stifel Nicolaus set a $57.00 target price on shares of DigitalOcean in a report on Tuesday, February 24th. Oppenheimer set a $190.00 target price on shares of DigitalOcean in a research note on Wednesday, May 6th. Morgan Stanley increased their price target on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Finally, Citigroup raised their price target on shares of DigitalOcean from $115.00 to $180.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $146.36.

DigitalOcean Stock Down 5.6%

The business has a 50-day moving average price of $140.01 and a 200-day moving average price of $88.72. The stock has a market cap of $17.07 billion, a PE ratio of 71.55 and a beta of 1.59. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.27 by $0.17. The company had revenue of $257.90 million during the quarter, compared to analyst estimates of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm’s revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous 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. As a group, analysts forecast that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current year.

Insider Transactions at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were 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 of the company’s stock, valued at $3,803,630.74. The trade was a 15.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the transaction, the chief financial officer owned 538,414 shares of the company’s stock, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold 39,338 shares of company stock valued at $6,191,576 in the last three months. Corporate insiders own 0.96% of the company’s stock.

Hedge Funds Weigh In On DigitalOcean

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