DigitalOcean Holdings, Inc. (NYSE:DOCN – Get Free Report) shares were down 5.5% during trading on Friday . The stock traded as low as $125.19 and last traded at $123.8250. 1,118,736 shares traded hands during mid-day trading, a decline of 69% from the average session volume of 3,648,876 shares. The stock had previously closed at $131.05.
Wall Street Analysts Forecast Growth
Several research analysts have recently weighed in on the stock. William Blair reissued an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Weiss Ratings lowered shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday. UBS Group decreased their price objective on shares of DigitalOcean from $155.00 to $140.00 and set a “neutral” rating for the company in a research note on Wednesday, August 5th. Barclays lifted their price objective on shares of DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 5th. Finally, KeyCorp began coverage on shares of DigitalOcean in a research note on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 target price on the stock. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $152.81.
Read Our Latest Stock Report on DOCN
DigitalOcean Stock Performance
DigitalOcean (NYSE:DOCN – Get Free Report) 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. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The firm had revenue of $281.18 million for the quarter, compared to the consensus estimate of $279.03 million. During the same period in the previous year, the firm posted $0.39 earnings per share. The firm’s revenue was up 28.6% on a year-over-year basis. 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 predict that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current fiscal year.
Insider Transactions at DigitalOcean
In related news, CAO Cherie Barrett sold 4,456 shares of DigitalOcean stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the completion of the sale, the chief accounting officer owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. This trade represents a 6.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total value of $1,057,300.00. Following the completion of the transaction, the chief financial officer owned 503,692 shares in the company, valued at $53,255,355.16. This trade represents a 1.95% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last ninety days, insiders have sold 22,641 shares of company stock valued at $2,589,317. 0.96% of the stock is owned by insiders.
Institutional Investors Weigh In On DigitalOcean
Several institutional investors have recently made changes to their positions in the company. Allworth Financial LP raised its position in DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after acquiring an additional 255 shares in the last quarter. Parallel Advisors LLC lifted its stake in DigitalOcean by 66.2% in the first quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after acquiring 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 worth $29,000 after acquiring an additional 517 shares in the last quarter. Banque Cantonale Vaudoise bought a new stake in DigitalOcean in the first quarter worth approximately $33,000. Finally, Optiver Holding B.V. increased its stake in shares of DigitalOcean by 1,063.9% during the 1st quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock worth $36,000 after purchasing an additional 383 shares during the last quarter. 49.77% of the stock is currently owned by institutional investors and hedge funds.
About DigitalOcean
DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and medium-sized businesses. Its platform offers on-demand infrastructure and developer tools intended to simplify the process of building, deploying, and scaling applications.
The company’s products include virtual machines known as Droplets, managed Kubernetes, managed databases, object storage through Spaces, block storage, networking services, and App Platform, a platform-as-a-service offering for application deployment.
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