Insider Selling: DigitalOcean (NYSE:DOCN) CFO Sells 10,000 Shares of Stock

DigitalOcean Holdings, Inc. (NYSE:DOCN) CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the sale, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. This trade represents a 1.95% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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.

DigitalOcean Trading Up 4.4%

DOCN traded up $4.63 during trading on Thursday, hitting $109.50. The company’s stock had a trading volume of 1,846,413 shares, compared to its average volume of 2,135,332. DigitalOcean Holdings, Inc. has a twelve month low of $30.89 and a twelve month high of $187.50. The stock has a market cap of $11.43 billion, a PE ratio of 50.00, a PEG ratio of 89.78 and a beta of 1.57. The firm’s 50 day moving average price is $125.06 and its 200-day moving average price is $117.00. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.26 by $0.19. The business had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.The business’s revenue for the quarter was up 28.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.39 earnings per share. 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, analysts expect that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current year.

Hedge Funds Weigh In On DigitalOcean

A number of institutional investors have recently added to or reduced their stakes in DOCN. State of New Jersey Common Pension Fund D acquired a new stake in DigitalOcean during the fourth quarter valued at approximately $2,358,000. New York State Teachers Retirement System increased its stake in DigitalOcean by 33.0% during the fourth quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock valued at $2,373,000 after purchasing an additional 12,229 shares during the last quarter. Legato Capital Management LLC acquired a new stake in shares of DigitalOcean during the fourth quarter worth $1,365,000. Summit Creek Advisors LLC bought a new position in shares of DigitalOcean in the 4th quarter worth about $7,126,000. Finally, Wealth High Governance Asset Management Ltda. acquired a new position in shares of DigitalOcean in the 1st quarter valued at about $8,986,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages recently commented on DOCN. Citigroup upped their price target on shares of DigitalOcean from $185.00 to $190.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Canaccord Genuity Group restated a “buy” rating and set a $200.00 price objective on shares of DigitalOcean in a report on Friday, July 10th. The Goldman Sachs Group lifted their target price on DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Robert W. Baird began coverage on DigitalOcean in a research note on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price target for the company. Finally, Stifel Nicolaus upgraded DigitalOcean from a “hold” rating to a “buy” rating and boosted their target price for the stock from $135.00 to $160.00 in a report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus price target of $152.81.

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.