DigitalOcean (NYSE:DOCN) Stock Price Up 7.7% – Here’s Why

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price rose 7.7% on Friday. The company traded as high as $133.27 and last traded at $133.4560. 704,008 shares were traded during mid-day trading, a decline of 80% from the average session volume of 3,531,696 shares. The stock had previously closed at $123.90.

Analyst Ratings Changes

A number of brokerages have recently weighed in on DOCN. Canaccord Genuity Group restated a “buy” rating and issued a $200.00 price target on shares of DigitalOcean in a research report on Friday, July 10th. Robert W. Baird initiated coverage on DigitalOcean in a report on Tuesday, July 21st. They issued an “outperform” rating and a $165.00 price target for the company. William Blair restated an “outperform” rating on shares of DigitalOcean in a report on Wednesday, July 15th. UBS Group reduced their price target on shares of DigitalOcean from $155.00 to $140.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 5th. Finally, Weiss Ratings downgraded shares of DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $152.81.

DigitalOcean Stock Up 7.6%

The firm has a market capitalization of $13.91 billion, a price-to-earnings ratio of 60.78, a price-to-earnings-growth ratio of 108.22 and a beta of 1.70. The business’s 50 day moving average is $125.73 and its 200-day moving average is $128.67. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share for the quarter, topping 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 for the quarter, compared to analyst estimates of $279.03 million. During the same quarter in the prior year, the firm earned $0.39 EPS. The firm’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. Equities analysts anticipate that DigitalOcean Holdings, Inc. will post 0.64 EPS for the current fiscal year.

Insider Activity

In other DigitalOcean news, CFO Matt Steinfort sold 10,000 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 value of $1,057,300.00. Following the sale, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. The trade was a 1.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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 4,456 shares of the firm’s stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $132.37, for a total value of $589,840.72. Following the completion of the transaction, the chief accounting officer owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. This represents a 6.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,641 shares of company stock worth $2,589,317 over the last quarter. 0.96% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Institutional investors and hedge funds have recently made changes to their positions in the company. Wedmont Private Capital acquired a new position in DigitalOcean in the 3rd quarter valued at $455,000. GAMMA Investing LLC boosted its holdings in DigitalOcean by 18.8% in the third quarter. GAMMA Investing LLC now owns 3,099 shares of the company’s stock valued at $413,000 after acquiring an additional 491 shares during the last quarter. CoreCap Advisors LLC increased its position in shares of DigitalOcean by 43.1% during the third quarter. CoreCap Advisors LLC now owns 3,648 shares of the company’s stock worth $487,000 after buying an additional 1,098 shares during the period. Ausbil Investment Management Ltd acquired a new stake in DigitalOcean during the third quarter worth approximately $3,401,000. Finally, Elevation Wealth Partners LLC grew its holdings in DigitalOcean by 175.0% in the third quarter. Elevation Wealth Partners LLC now owns 616 shares of the company’s stock worth $82,000 after purchasing an additional 392 shares during the period. Institutional investors and hedge funds own 49.77% of the company’s stock.

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.