DigitalOcean (NYSE:DOCN) Trading Up 5.8% – Should You Buy?

Posted by Brenda Bartman on Sep 18th, 2026

DigitalOcean Holdings, Inc. (NYSE:DOCN – Get Free Report) traded up 5.8% during mid-day trading on Wednesday . The stock traded as high as $125.09 and last traded at $124.66. 514,239 shares were traded during mid-day trading, a decline of 86% from the average session volume of 3,622,517 shares. The stock had previously closed at $117.85.

Wall Street Analyst Weigh In

Several research analysts recently commented on the company. Stifel Nicolaus raised DigitalOcean from a “hold” rating to a “buy” rating and boosted their target price for the stock from $135.00 to $160.00 in a research note on Tuesday, July 21st. UBS Group decreased their price objective on DigitalOcean from $155.00 to $140.00 and set a “neutral” rating for the company in a research note on Wednesday, August 5th. Weiss Ratings lowered shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Robert W. Baird assumed coverage on DigitalOcean in a report on Tuesday, July 21st. They issued an “outperform” rating and a $165.00 target price on the stock. Finally, Citigroup raised their price target on DigitalOcean from $185.00 to $190.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $152.81.

Read Our Latest Research Report on DigitalOcean

DigitalOcean Trading Up 7.4%

The company has a market cap of $13.87 billion, a price-to-earnings ratio of 60.69, a PEG ratio of 105.23 and a beta of 1.57. The company has a quick ratio of 1.31, a current ratio of 1.31 and a debt-to-equity ratio of 1.14. The business’s fifty day simple moving average is $121.70 and its two-hundred day simple moving average is $121.26.

DigitalOcean (NYSE:DOCN – Get Free Report) last issued its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The business had revenue of $281.18 million during the quarter, compared to analysts’ expectations of $279.03 million. During the same quarter in the prior year, the business posted $0.39 EPS. The company’s revenue for the quarter 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, equities analysts predict that DigitalOcean Holdings, Inc. will post 0.64 EPS for the current year.

Insiders Place Their Bets

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction that occurred on 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 transaction, the chief financial officer owned 503,692 shares of the company’s stock, valued at $53,255,355.16. The trade was a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at 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, Director Warren J. Adelman sold 4,200 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $124.01, for a total value of $520,842.00. Following the completion of the sale, the director directly owned 67,433 shares of the company’s stock, valued at $8,362,366.33. The trade was a 5.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 22,641 shares of company stock valued at $2,589,317. 0.96% of the stock is currently owned by insiders.

Institutional Trading of DigitalOcean

Large investors have recently bought and sold shares of the business. Hilltop National Bank acquired a new position in DigitalOcean in the second quarter valued at $38,000. Rakuten Securities Inc. purchased a new position in shares of DigitalOcean during the second quarter worth about $43,000. Parallel Advisors LLC grew its holdings in shares of DigitalOcean by 66.2% during the first quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock worth $28,000 after buying an additional 129 shares during the last quarter. Banque Cantonale Vaudoise acquired a new position in DigitalOcean in the 1st quarter valued at about $33,000. Finally, LRI Investments LLC acquired a new position in DigitalOcean in the 2nd quarter valued at about $64,000. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Company Profile

(Get Free Report)

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.