DigitalOcean Holdings, Inc. (NYSE:DOCN – Get Free Report) dropped 8.9% during mid-day trading on Wednesday . The company traded as low as $115.30 and last traded at $114.1330. Approximately 263,135 shares changed hands during trading, a decline of 93% from the average session volume of 3,772,779 shares. The stock had previously closed at $125.25.
Analysts Set New Price Targets
Several equities research analysts have commented on DOCN shares. Stifel Nicolaus raised shares of DigitalOcean from a “hold” rating to a “buy” rating and upped their target price for the company from $135.00 to $160.00 in a research note on Tuesday, July 21st. Piper Sandler lifted their price target on shares of DigitalOcean from $98.00 to $155.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 5th. Oppenheimer set a $190.00 price target on shares of DigitalOcean in a report on Wednesday, May 6th. KeyCorp assumed coverage on shares of DigitalOcean in a research report on Tuesday, June 2nd. They issued an “overweight” rating and a $200.00 price objective for the company. Finally, Barclays raised their price objective on DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, DigitalOcean presently has a consensus rating of “Buy” and a consensus price target of $151.33.
DigitalOcean Price Performance
DigitalOcean (NYSE:DOCN – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.19. The business had revenue of $281.18 million for the quarter, compared to analyst estimates of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm’s quarterly revenue was up 28.6% on a year-over-year basis. During the same period last year, the business posted $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 research analysts forecast that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current fiscal year.
Insider Buying and Selling at DigitalOcean
In other news, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction dated 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 sale, the chief financial officer directly owned 538,414 shares in the company, valued at $91,568,068.98. The trade was a 1.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 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. Also, CAO Cherie Barrett sold 4,456 shares of the company’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $132.37, for a total value of $589,840.72. Following the transaction, the chief accounting officer directly owned 65,487 shares of the company’s stock, valued at $8,668,514.19. This represents a 6.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 18,656 shares of company stock valued at $2,811,383 in the last 90 days. 0.96% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On DigitalOcean
A number of large investors have recently bought and sold shares of the company. Allworth Financial LP raised its holdings in shares of DigitalOcean by 54.4% in the third 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 last quarter. Parallel Advisors LLC boosted its holdings 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 last quarter. Huntington National Bank grew its position in DigitalOcean by 638.3% in the fourth quarter. Huntington National Bank now owns 598 shares of the company’s stock valued at $29,000 after purchasing an additional 517 shares in the last quarter. NBC Securities Inc. bought a new position in DigitalOcean in the fourth quarter valued at $32,000. Finally, Banque Cantonale Vaudoise acquired a new stake in DigitalOcean in the 1st quarter valued at $33,000. Institutional investors and hedge funds 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.
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