DigitalOcean (NYSE:DOCN) Trading Up 10.3% – Should You Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN) rose 10.3% during trading on Wednesday . The stock traded as high as $134.60 and last traded at $133.34. 302,933 shares traded hands during trading, a decline of 92% from the average session volume of 3,828,114 shares. The stock had previously closed at $120.86.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on DOCN shares. William Blair reiterated an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Citigroup increased their target price on DigitalOcean from $185.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. UBS Group decreased their target price on DigitalOcean from $155.00 to $140.00 and set a “neutral” rating for the company in a research report on Wednesday, August 5th. Robert W. Baird assumed coverage on DigitalOcean in a research report on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price target on the stock. Finally, Morgan Stanley increased their price objective on DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, DigitalOcean presently has an average rating of “Buy” and an average price target of $151.33.

DigitalOcean Stock Down 0.7%

The stock has a market cap of $13.82 billion, a price-to-earnings ratio of 60.46, a P/E/G ratio of 114.17 and a beta of 1.61. The business has a fifty day moving average of $140.56 and a 200 day moving average of $111.14. 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 posted its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.19. The firm had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company’s revenue was up 28.6% compared to the same quarter last year. During the same period in the previous year, the company 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, equities analysts predict that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current year.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, Director Warren J. Adelman sold 4,200 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $124.01, for a total transaction of $520,842.00. Following 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 transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Matt Steinfort sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total value of $1,700,700.00. Following the transaction, the chief financial officer owned 538,414 shares in the company, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. 0.96% of the stock is currently owned by insiders.

Institutional Trading of DigitalOcean

Large investors have recently made changes to their positions in the stock. Fuller & Thaler Asset Management Inc. raised its stake in shares of DigitalOcean by 11.6% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock valued at $116,467,000 after acquiring an additional 252,303 shares in the last quarter. Lazard Asset Management LLC boosted its position in DigitalOcean by 34.5% during the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock worth $47,430,000 after purchasing an additional 426,264 shares during the period. Van Berkom & Associates Inc. boosted its position in DigitalOcean by 2.9% during the fourth quarter. Van Berkom & Associates Inc. now owns 1,610,671 shares of the company’s stock worth $77,505,000 after purchasing an additional 45,680 shares during the period. First Trust Advisors LP boosted its position in DigitalOcean by 9.3% during the first quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock worth $123,622,000 after purchasing an additional 122,675 shares during the period. Finally, Dimensional Fund Advisors LP grew its holdings in DigitalOcean by 2.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,359,695 shares of the company’s stock valued at $65,432,000 after purchasing an additional 31,682 shares during the last quarter. Institutional investors own 49.77% of the company’s stock.

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.