DigitalOcean (NYSE:DOCN) Stock Jumps 6.9% – Here’s What Happened

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price rose 6.9% during mid-day trading on Monday. The stock traded as high as $97.72 and last traded at $99.63. Approximately 265,610 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 3,506,142 shares. The stock had previously closed at $93.22.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on DOCN shares. Truist Financial started coverage on shares of DigitalOcean in a research note on Thursday, August 27th. They issued a “buy” rating and a $175.00 price target on the stock. Weiss Ratings cut DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 9th. Oppenheimer boosted their price objective on shares of DigitalOcean from $190.00 to $220.00 and gave the company an “outperform” rating in a report on Wednesday, October 14th. UBS Group reiterated a “neutral” rating and issued a $105.00 target price on shares of DigitalOcean in a report on Monday. Finally, Canaccord Genuity Group restated a “buy” rating and issued a $200.00 target price on shares of DigitalOcean in a report on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, DigitalOcean presently has an average rating of “Buy” and a consensus price target of $150.69.

DigitalOcean Stock Up 8.8%

The company has a market capitalization of $10.59 billion, a price-to-earnings ratio of 46.16, a P/E/G ratio of 81.27 and a beta of 1.70. 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 firm has a 50 day moving average price of $121.84 and a two-hundred day moving average price of $130.46.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.26 by $0.19. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%. The company had revenue of $281.18 million during the quarter, compared to the consensus estimate of $279.03 million. During the same period in the previous year, the firm posted $0.39 earnings per share. DigitalOcean’s quarterly revenue 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. As a group, sell-side analysts expect that DigitalOcean Holdings, Inc. will post 0.62 earnings per share for the current year.

Insider Transactions at DigitalOcean

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 shares of the firm’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 transaction, the chief financial officer directly owned 503,692 shares in the company, valued at $53,255,355.16. This trade represents a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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, Director Warren Adelman sold 4,200 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $124.01, for a total value of $520,842.00. Following the transaction, the director owned 67,433 shares of the company’s stock, valued at approximately $8,362,366.33. This trade represents a 5.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 22,641 shares of company stock valued at $2,589,317 in the last three months. Corporate insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Several institutional investors have recently bought and sold shares of the company. Bank of America Corp DE acquired a new position in DigitalOcean in the second quarter valued at approximately $241,945,000. Principal Financial Group Inc. increased its holdings in DigitalOcean by 155.3% during the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after purchasing an additional 674,231 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of DigitalOcean in the second quarter valued at approximately $98,011,000. Allspring Global Investments Holdings LLC boosted its position in shares of DigitalOcean by 81.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 683,707 shares of the company’s stock valued at $59,947,000 after buying an additional 306,529 shares during the last quarter. Finally, Sei Investments Co. grew its holdings in DigitalOcean by 82.8% during the first quarter. Sei Investments Co. now owns 370,223 shares of the company’s stock worth $31,758,000 after buying an additional 167,659 shares in the last quarter. Institutional investors own 49.77% of the company’s stock.

DigitalOcean Company Profile

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.