DigitalOcean (NYSE:DOCN) Sets New 1-Year High – Here’s Why

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price hit a new 52-week high during trading on Monday . The company traded as high as $185.92 and last traded at $181.6820, with a volume of 2040168 shares traded. The stock had previously closed at $170.44.

Analysts Set New Price Targets

A number of equities research analysts recently commented on DOCN shares. Citigroup raised their price objective on shares of DigitalOcean from $115.00 to $180.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. The Goldman Sachs Group raised their price objective on shares of DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Morgan Stanley raised their price objective on shares of DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Weiss Ratings restated a “hold (c+)” rating on shares of DigitalOcean in a report on Friday, March 27th. Finally, Oppenheimer set a $190.00 price objective on shares of DigitalOcean in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $146.36.

DigitalOcean Trading Up 2.1%

The firm has a market cap of $18.56 billion, a P/E ratio of 77.68 and a beta of 1.60. The business’s 50-day moving average is $136.60 and its two-hundred day moving average is $86.90. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46.

DigitalOcean (NYSE:DOCN) last released its earnings results on Tuesday, May 5th. The company reported $0.44 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.17. The business had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The firm’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter last year, the firm earned $0.56 earnings per share. 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 predict that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current fiscal year.

Insider Transactions at DigitalOcean

In other news, Director Hilary Schneider sold 4,338 shares of DigitalOcean stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the transaction, the director owned 24,323 shares of the company’s stock, valued at $3,803,630.74. This trade represents a 15.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the completion of the transaction, the chief financial officer directly owned 573,272 shares of the company’s stock, valued at approximately $87,423,980. This trade represents a 4.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 39,338 shares of company stock valued at $6,191,576. Insiders own 0.96% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Parallel Advisors LLC grew its position in shares of DigitalOcean by 66.2% in the 1st 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 period. Optiver Holding B.V. grew its position in shares of 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 period. Norris Financial Group LLC bought a new position in shares of DigitalOcean in the 1st quarter valued at about $7,234,000. Edgestream Partners L.P. bought a new position in shares of DigitalOcean in the 1st quarter valued at about $3,119,000. Finally, Janus Henderson Group PLC lifted its stake in shares of DigitalOcean by 3.8% during the 1st quarter. Janus Henderson Group PLC now owns 33,376 shares of the company’s stock worth $2,864,000 after buying an additional 1,235 shares during the last quarter. Institutional investors own 49.77% of the company’s stock.

About DigitalOcean

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.