DigitalOcean (NYSE:DOCN) Shares Up 7.9% – Still a Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) shot up 7.9% on Wednesday . The company 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

A number of research firms recently weighed in on DOCN. Barclays increased their price objective on DigitalOcean from $105.00 to $183.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Bank of America upped their price target on shares of DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research report on Thursday, April 9th. Piper Sandler upped their price target on shares of DigitalOcean from $98.00 to $155.00 and gave the company a “neutral” rating in a research report on Tuesday, May 5th. Citizens Jmp upped their price target on shares of DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research report on Thursday, March 26th. Finally, Stifel Nicolaus set a $57.00 price target on shares of DigitalOcean in a research report on Tuesday, February 24th. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $142.23.

DigitalOcean Stock Up 0.1%

The firm has a market cap of $16.55 billion, a P/E ratio of 69.26 and a beta of 1.42. The stock’s 50-day simple moving average is $103.69 and its 200 day simple moving average is $70.50. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92.

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

Insider Transactions at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of the 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 transaction, the director owned 24,323 shares of the company’s stock, valued at $3,803,630.74. This represents a 15.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Cherie Barrett sold 22,000 shares of the stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the transaction, the chief accounting officer directly owned 62,469 shares in the company, valued at $3,421,427.13. This trade represents a 26.05% 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 90 days. 0.96% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DigitalOcean

A number of institutional investors and hedge funds have recently made changes to their positions in DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of DigitalOcean by 5.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock worth $11,342,000 after acquiring an additional 16,162 shares during the last quarter. Intech Investment Management LLC raised its holdings in shares of DigitalOcean by 59.2% in the 1st 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 last quarter. Amundi raised its holdings in shares of DigitalOcean by 126,552.2% in the 2nd quarter. Amundi now owns 29,130 shares of the company’s stock worth $827,000 after acquiring an additional 29,107 shares during the last quarter. Jump Financial LLC acquired a new stake in shares of DigitalOcean in the 2nd quarter worth about $3,212,000. Finally, Qube Research & Technologies Ltd raised its holdings in shares of DigitalOcean by 69.7% in the 2nd quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock worth $11,842,000 after acquiring an additional 170,339 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.