DigitalOcean (NYSE:DOCN) Stock Price Down 7.9% – What’s Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN) was down 7.9% during mid-day trading on Friday . The company traded as low as $111.89 and last traded at $112.02. Approximately 697,734 shares traded hands during trading, a decline of 81% from the average session volume of 3,709,936 shares. The stock had previously closed at $121.68.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Citigroup upped their price target on shares of DigitalOcean from $185.00 to $190.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Morgan Stanley raised their price objective on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. Truist Financial initiated coverage on DigitalOcean in a report on Thursday. They set a “buy” rating and a $175.00 price objective for the company. Barclays upped their target price on DigitalOcean from $160.00 to $161.00 and gave the company an “overweight” rating in a research report on Wednesday, August 5th. Finally, Robert W. Baird began coverage on DigitalOcean in a report on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Buy” and a consensus target price of $152.81.

DigitalOcean Price Performance

The firm has a market capitalization of $11.62 billion, a price-to-earnings ratio of 50.86, a P/E/G ratio of 98.44 and a beta of 1.61. The company’s 50 day moving average is $129.95 and its 200 day moving average is $115.44. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.14.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The business had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. During the same quarter in the previous year, the company earned $0.39 EPS. The business’s revenue was up 28.6% on a year-over-year basis. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. On average, equities research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current fiscal year.

Insider Activity

In other DigitalOcean news, CAO Cherie Barrett sold 4,456 shares of the firm’s stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the transaction, the chief accounting officer owned 65,487 shares in the company, valued at $8,668,514.19. This trade represents a 6.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Warren J. Adelman sold 4,200 shares of DigitalOcean stock in a transaction on Friday, August 7th. The shares were sold at an average price of $124.01, for a total value of $520,842.00. Following the completion of the transaction, the director directly owned 67,433 shares of the company’s stock, valued at $8,362,366.33. This represents a 5.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 18,656 shares of company stock worth $2,811,383. Corporate insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several large investors have recently modified their holdings of the stock. Allworth Financial LP increased its position in shares of DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after purchasing an additional 255 shares during the period. Parallel Advisors LLC grew its stake in DigitalOcean by 66.2% during the first quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares in the last quarter. Huntington National Bank grew its stake in DigitalOcean by 638.3% during the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock worth $29,000 after buying an additional 517 shares in the last quarter. NBC Securities Inc. bought a new position in DigitalOcean in the 4th quarter valued at about $32,000. Finally, Banque Cantonale Vaudoise bought a new position in DigitalOcean in the 1st quarter valued at about $33,000. 49.77% of the stock is owned by institutional investors and hedge funds.

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.