DigitalOcean (NYSE:DOCN) Stock Jumps 6.9% – Time to Buy?

Posted by Brian Himes on Oct 28th, 2026

DigitalOcean Holdings, Inc. (NYSE:DOCN – Get Free Report)’s share price was up 6.9% on Monday. The company traded as high as $97.72 and last traded at $99.63. 265,610 shares were traded during trading, a decline of 92% from the average session volume of 3,506,142 shares. The stock had previously closed at $93.22.

Analyst Ratings Changes

DOCN has been the subject of several recent research reports. Stifel Nicolaus upgraded shares of DigitalOcean from a “hold” rating to a “buy” rating and upped their price target for the stock from $135.00 to $160.00 in a research report on Tuesday, July 21st. William Blair restated an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Truist Financial began coverage on DigitalOcean in a research note on Thursday, August 27th. They set a “buy” rating and a $175.00 target price on the stock. Zacks Research upgraded DigitalOcean from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 19th. Finally, Piper Sandler raised DigitalOcean from a “neutral” rating to an “overweight” rating and decreased their price target for the stock from $142.00 to $126.00 in a research note on Wednesday, October 21st. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $150.69.

Get Our Latest Stock Report on DOCN

DigitalOcean Price Performance

The company has a market cap of $10.85 billion, a P/E ratio of 47.45, a PEG ratio of 81.27 and a beta of 1.70. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31. The company has a fifty day simple moving average of $121.01 and a 200-day simple moving average of $110.30.

DigitalOcean (NYSE:DOCN – Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.26 by $0.19. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The firm had revenue of $281.18 million for the quarter, compared to the consensus estimate of $279.03 million. During the same quarter in the previous year, the company earned $0.39 EPS. The business’s revenue for the quarter was up 28.6% compared to the same quarter last year. 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, sell-side analysts predict that DigitalOcean Holdings, Inc. will post 0.62 earnings per share for the current year.

Insider Activity at DigitalOcean

In other news, CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction dated 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 completion of the sale, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. This represents a 1.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed 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. Also, CAO Cherie Barrett sold 3,985 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total value of $421,334.05. Following the completion of the transaction, the chief accounting officer directly owned 58,399 shares in the company, valued at $6,174,526.27. The trade was a 6.39% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 22,641 shares of company stock valued at $2,589,317. Insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several large investors have recently modified their holdings of the company. Parallel Advisors LLC grew its position in shares of 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 purchasing an additional 129 shares during the last quarter. Root Financial Partners LLC acquired a new position in DigitalOcean during the third quarter worth $31,000. Banque Cantonale Vaudoise acquired a new stake in shares of DigitalOcean during the 1st quarter worth about $33,000. Optiver Holding B.V. raised its stake in shares of DigitalOcean by 1,063.9% in the first quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock valued at $36,000 after acquiring an additional 383 shares during the last quarter. Finally, SSI Investment Management LLC acquired a new position in DigitalOcean in the second quarter worth $37,000. 49.77% of the stock is owned by institutional investors.

About DigitalOcean

(Get Free Report)

DigitalOcean Holdings, Inc is a cloud computing company that provides infrastructure and developer-focused services for startups, small and medium-sized businesses, and individual developers. Its platform is designed to simplify the deployment, management, and scaling of applications without requiring customers to build and operate extensive in-house infrastructure.

The company’s offerings include Droplets, its virtual machine service; managed Kubernetes; managed databases; object and block storage; networking tools; and application deployment services through App Platform.