DigitalOcean (NYSE:DOCN) Shares Down 7.7% – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN) was down 7.7% during trading on Friday . The company traded as low as $129.51 and last traded at $129.9390. Approximately 728,863 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 3,888,822 shares. The stock had previously closed at $140.84.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. KeyCorp started coverage on shares of DigitalOcean in a research report on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 price objective on the stock. Bank of America lifted their price target on shares of DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a report on Thursday, April 9th. Barclays increased their price objective on shares of DigitalOcean from $183.00 to $184.00 and gave the company an “overweight” rating in a report on Tuesday. Oppenheimer set a $190.00 target price on DigitalOcean in a report on Wednesday, May 6th. Finally, Citigroup boosted their target price on DigitalOcean from $180.00 to $185.00 and gave the stock a “buy” rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $145.36.

DigitalOcean Stock Performance

The business’s fifty day moving average price is $155.69 and its two-hundred day moving average price is $98.28. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. The stock has a market capitalization of $13.78 billion, a P/E ratio of 57.62 and a beta of 1.57.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.17. The business 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 company’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.56 earnings per share. 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, sell-side analysts forecast that DigitalOcean Holdings, Inc. will post 0.55 earnings per share for the current year.

Insider Transactions at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the sale, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. This represents a 15.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total value of $1,700,700.00. Following the completion of the sale, the chief financial officer owned 538,414 shares in the company, valued at approximately $91,568,068.98. The trade was 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 sold a total of 39,338 shares of company stock worth $6,191,576 over the last three months. 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 bought and sold shares of DOCN. Allworth Financial LP raised its stake in DigitalOcean by 54.4% in the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock worth $25,000 after buying an additional 255 shares in the last quarter. Parallel Advisors LLC boosted its position in DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after acquiring an additional 129 shares in the last quarter. Huntington National Bank increased its holdings in shares of DigitalOcean by 638.3% in the 4th quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after acquiring an additional 517 shares during the period. NBC Securities Inc. bought a new position in shares of DigitalOcean in the 4th quarter worth $32,000. Finally, Banque Cantonale Vaudoise bought a new position in shares of DigitalOcean in the 1st quarter worth $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.