Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN – Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $131.37, but opened at $145.00. DigitalOcean shares last traded at $139.5680, with a volume of 981,599 shares changing hands.
Wall Street Analyst Weigh In
A number of brokerages have commented on DOCN. Morgan Stanley upped their price target on shares of DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Piper Sandler boosted their price objective on DigitalOcean from $98.00 to $155.00 and gave the company a “neutral” rating in a research note on Tuesday, May 5th. Canaccord Genuity Group reaffirmed a “buy” rating and set a $200.00 target price on shares of DigitalOcean in a research note on Thursday, June 11th. KeyCorp initiated coverage on DigitalOcean in a research note on Tuesday, June 2nd. They set an “overweight” rating and a $200.00 target price for the company. Finally, Citizens Jmp boosted their price target on DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research note on Thursday, March 26th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $145.36.
View Our Latest Research Report on DigitalOcean
DigitalOcean Trading Up 2.4%
DigitalOcean (NYSE:DOCN – Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.17. The company had revenue of $257.90 million for the quarter, compared to analysts’ expectations of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The business’s revenue was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.56 EPS. 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, analysts forecast that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current fiscal year.
Insider Activity at DigitalOcean
In other DigitalOcean 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 transaction, the director 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 legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Matt Steinfort sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $152.50, for a total value of $3,812,500.00. Following the completion of the sale, the chief financial officer directly owned 573,272 shares of the company’s stock, valued at $87,423,980. This trade represents a 4.18% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 39,338 shares of company stock worth $6,191,576. Corporate insiders own 0.96% of the company’s stock.
Institutional Trading of DigitalOcean
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Bullseye Asset Management LLC grew its holdings in shares of DigitalOcean by 267.8% during the third quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company’s stock valued at $3,392,000 after buying an additional 72,300 shares during the last quarter. State of New Jersey Common Pension Fund D acquired a new stake in shares of DigitalOcean in the 4th quarter worth about $2,358,000. New York State Teachers Retirement System raised its holdings in shares of DigitalOcean by 33.0% in the 4th quarter. New York State Teachers Retirement System now owns 49,310 shares of the company’s stock worth $2,373,000 after acquiring an additional 12,229 shares during the last quarter. SG Americas Securities LLC lifted its position in DigitalOcean by 266.1% in the 4th quarter. SG Americas Securities LLC now owns 167,126 shares of the company’s stock valued at $8,042,000 after acquiring an additional 121,473 shares in the last quarter. Finally, Legato Capital Management LLC bought a new position in DigitalOcean in the 4th quarter valued at about $1,365,000. Institutional investors own 49.77% of the company’s stock.
DigitalOcean Company Profile
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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