DigitalOcean (NYSE:DOCN) Stock Price Down 7% – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN) was down 7% during trading on Wednesday . The company traded as low as $138.15 and last traded at $146.0840. 1,193,785 shares changed hands during mid-day trading, a decline of 69% from the average daily volume of 3,897,549 shares. The stock had previously closed at $157.03.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Citizens Jmp increased 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. UBS Group increased their price target on DigitalOcean to $175.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 12th. Morgan Stanley raised their target price on shares of DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Piper Sandler raised their target price on DigitalOcean from $98.00 to $155.00 and gave the company a “neutral” rating in a report on Tuesday, May 5th. Finally, The Goldman Sachs Group lifted their price target on DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. One research 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.com, DigitalOcean presently has a consensus rating of “Moderate Buy” and a consensus target price of $146.36.

DigitalOcean Stock Down 10.1%

The firm has a market capitalization of $13.56 billion, a price-to-earnings ratio of 56.73 and a beta of 1.57. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. The stock has a fifty day moving average of $151.71 and a two-hundred day moving average of $95.09.

DigitalOcean (NYSE:DOCN) last announced its 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 firm had revenue of $257.90 million for the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the previous 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. Sell-side analysts anticipate that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current year.

Insider Activity at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the transaction, the director owned 24,323 shares in the company, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the transaction, the chief financial officer directly owned 573,272 shares of the company’s stock, valued at $87,423,980. This represents a 4.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 39,338 shares of company stock valued at $6,191,576. Company insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in DOCN. Allworth Financial LP lifted its stake in shares of 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 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 purchasing an additional 129 shares during the period. Huntington National Bank increased its holdings in DigitalOcean by 638.3% in the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock worth $29,000 after purchasing an additional 517 shares in the last quarter. NBC Securities Inc. bought a new stake in DigitalOcean in the fourth quarter worth approximately $32,000. Finally, Banque Cantonale Vaudoise acquired a new position in DigitalOcean in the first quarter valued at approximately $33,000. 49.77% of the stock is owned by 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.