DigitalOcean (NYSE:DOCN) Shares Down 7.7% – Should You Sell?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price was down 7.7% on Friday . The stock traded as low as $129.51 and last traded at $129.9390. Approximately 728,863 shares were traded during trading, a decline of 81% from the average session volume of 3,888,822 shares. The stock had previously closed at $140.84.

Analysts Set New Price Targets

Several brokerages have recently issued reports on DOCN. The Goldman Sachs Group increased their target price on DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Oppenheimer set a $190.00 price objective on DigitalOcean in a report on Wednesday, May 6th. Bank of America boosted their target price on shares of DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a report on Thursday, April 9th. UBS Group decreased their price target on shares of DigitalOcean from $175.00 to $155.00 and set a “neutral” rating for the company in a research note on Wednesday. Finally, Morgan Stanley lifted their price target on shares of DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. One equities research 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 stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $145.36.

DigitalOcean Trading Down 6.2%

The firm’s 50 day moving average price is $155.69 and its 200-day moving average price is $98.28. The stock has a market cap of $13.78 billion, a P/E ratio of 57.62 and a beta of 1.57. 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 issued its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business had revenue of $257.90 million for the quarter, compared to the consensus estimate of $249.76 million. During the same period last year, the business posted $0.56 EPS. The company’s revenue was up 22.4% compared to the same quarter last year. 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, equities research analysts forecast that DigitalOcean Holdings, Inc. will post 0.55 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Hilary Schneider sold 4,338 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $156.38, for a total transaction of $678,376.44. Following the completion of the sale, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of the company’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the completion of the sale, the chief financial officer owned 573,272 shares of the company’s stock, valued at $87,423,980. This trade represents a 4.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 39,338 shares of company stock worth $6,191,576. Company insiders own 0.96% of the company’s stock.

Institutional Investors Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of DigitalOcean by 5.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock valued at $11,342,000 after purchasing an additional 16,162 shares during the period. Intech Investment Management LLC increased its stake in DigitalOcean by 59.2% in the 1st quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after buying an additional 14,655 shares in the last quarter. Amundi raised its holdings in DigitalOcean by 126,552.2% during the second quarter. Amundi now owns 29,130 shares of the company’s stock valued at $827,000 after acquiring an additional 29,107 shares during the period. Jump Financial LLC bought a new stake in DigitalOcean during the second quarter valued at about $3,212,000. Finally, Qube Research & Technologies Ltd lifted its position in shares of DigitalOcean by 69.7% in the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock valued at $11,842,000 after acquiring an additional 170,339 shares in the last quarter. 49.77% of the stock is owned by hedge funds and other institutional investors.

DigitalOcean Company Profile

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.