DigitalOcean Holdings, Inc. (NYSE:DOCN – Get Free Report)’s stock price gapped down prior to trading on Thursday. The stock had previously closed at $109.29, but opened at $101.24. DigitalOcean shares last traded at $98.5380, with a volume of 822,525 shares.
Analyst Ratings Changes
Several research analysts have weighed in on the stock. Weiss Ratings downgraded shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. Stifel Nicolaus upgraded shares of DigitalOcean from a “hold” rating to a “buy” rating and lifted their price objective for the company from $135.00 to $160.00 in a report on Tuesday, July 21st. William Blair reissued an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Oppenheimer upped their target price on shares of DigitalOcean from $190.00 to $220.00 and gave the stock an “outperform” rating in a report on Wednesday. Finally, Robert W. Baird started coverage on DigitalOcean in a research note on Tuesday, July 21st. They set an “outperform” rating and a $165.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $154.69.
Check Out Our Latest Research Report on DOCN
DigitalOcean Trading Down 6.2%
DigitalOcean (NYSE:DOCN – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.26 by $0.19. The business had revenue of $281.18 million during 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%. DigitalOcean’s quarterly revenue was up 28.6% compared to the same quarter last year. During the same quarter last year, the business earned $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. Equities research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.64 EPS for the current year.
Insider Activity at DigitalOcean
In other news, CFO Matt Steinfort sold 10,000 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the sale, the chief financial officer owned 503,692 shares of the company’s stock, valued at approximately $53,255,355.16. This represents a 1.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through 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 3,985 shares of the business’s 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 $421,334.05. Following the transaction, the chief accounting officer owned 58,399 shares of the company’s stock, valued at $6,174,526.27. This trade represents a 6.39% decrease in their position. 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 quarter, insiders sold 22,641 shares of company stock worth $2,589,317. Insiders own 0.96% of the company’s stock.
Hedge Funds Weigh In On DigitalOcean
A number of institutional investors have recently made changes to their positions in DOCN. Parallel Advisors LLC lifted 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 worth $28,000 after buying an additional 129 shares in the last quarter. Banque Cantonale Vaudoise bought a new position in DigitalOcean during the 1st quarter valued at about $33,000. Optiver Holding B.V. grew its position in DigitalOcean by 1,063.9% in the 1st 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. SSI Investment Management LLC purchased a new stake in DigitalOcean in the 2nd quarter valued at about $37,000. Finally, Hilltop National Bank bought a new position in DigitalOcean in the second quarter worth approximately $38,000. 49.77% of the stock is owned by institutional investors and hedge funds.
DigitalOcean Company Profile
DigitalOcean Holdings, Inc (NYSE:DOCN) provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Its platform offers on-demand infrastructure and software tools intended to simplify the development, deployment, and management of applications.
The company’s services include cloud compute through Droplets, managed Kubernetes, managed databases, object and block storage, networking, and the App Platform for deploying applications. DigitalOcean also provides developer tools, tutorials, support, and other resources intended to help customers build and scale digital products without managing traditional data-center infrastructure.
Founded in 2011 and headquartered in New York City, DigitalOcean serves customers internationally through cloud infrastructure and data-center regions located in North America, Europe, and Asia.
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