DigitalOcean (NYSE:DOCN) Trading Up 11.7% – Here’s Why

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) traded up 11.7% during mid-day trading on Tuesday . The stock traded as high as $122.67 and last traded at $125.5880. Approximately 928,965 shares changed hands during mid-day trading, a decline of 75% from the average daily volume of 3,648,335 shares. The stock had previously closed at $112.47.

Analyst Ratings Changes

A number of analysts have commented on the company. KeyCorp initiated coverage on DigitalOcean in a report on Tuesday, June 2nd. They issued an “overweight” rating and a $200.00 target price for the company. UBS Group lowered their price target on DigitalOcean from $155.00 to $140.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. William Blair reaffirmed an “outperform” rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Weiss Ratings upgraded DigitalOcean from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Finally, Robert W. Baird initiated coverage on DigitalOcean in a research report on Tuesday, July 21st. They issued an “outperform” rating and a $165.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $152.81.

DigitalOcean Price Performance

The stock has a market capitalization of $13.50 billion, a P/E ratio of 59.15, a PEG ratio of 108.45 and a beta of 1.57. The company has a debt-to-equity ratio of 1.14, a quick ratio of 1.31 and a current ratio of 1.31. The firm has a fifty day moving average price of $122.94 and a two-hundred day moving average price of $118.49.

DigitalOcean (NYSE:DOCN) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.26 by $0.19. The company had revenue of $281.18 million during the quarter, compared to analyst estimates of $279.03 million. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.DigitalOcean’s revenue was up 28.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $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. As a group, analysts expect that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current fiscal year.

Insider Buying and Selling

In other DigitalOcean news, Director Warren J. Adelman sold 4,200 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $124.01, for a total value of $520,842.00. Following the transaction, the director directly owned 67,433 shares in the company, valued at approximately $8,362,366.33. This trade represents a 5.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Cherie Barrett sold 4,456 shares of DigitalOcean stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total transaction of $589,840.72. Following the transaction, the chief accounting officer owned 65,487 shares in the company, valued at $8,668,514.19. This represents a 6.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 22,641 shares of company stock valued at $2,589,317. 0.96% of the stock is owned by insiders.

Institutional Investors Weigh In On DigitalOcean

Hedge funds and other institutional investors have recently modified their holdings of the stock. California State Teachers Retirement System grew its holdings in DigitalOcean by 16,016.1% during the second quarter. California State Teachers Retirement System now owns 14,211,058 shares of the company’s stock valued at $2,231,562,000 after purchasing an additional 14,122,879 shares during the period. Fuller & Thaler Asset Management Inc. lifted its position in shares of DigitalOcean by 11.6% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,420,341 shares of the company’s stock valued at $116,467,000 after buying an additional 252,303 shares in the last quarter. Lazard Asset Management LLC lifted its position in shares of DigitalOcean by 34.5% during the 2nd quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company’s stock valued at $47,430,000 after buying an additional 426,264 shares in the last quarter. Bank of America Corp DE bought a new position in shares of DigitalOcean during the 2nd quarter valued at approximately $241,945,000. Finally, First Trust Advisors LP grew its stake in shares of DigitalOcean by 9.3% during the 1st quarter. First Trust Advisors LP now owns 1,441,151 shares of the company’s stock valued at $123,622,000 after acquiring an additional 122,675 shares during the period. 49.77% of the stock is currently owned by hedge funds and other institutional investors.

About DigitalOcean

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and medium-sized businesses. Its platform offers on-demand infrastructure and developer tools intended to simplify the process of building, deploying, and scaling applications.

The company’s products include virtual machines known as Droplets, managed Kubernetes, managed databases, object storage through Spaces, block storage, networking services, and App Platform, a platform-as-a-service offering for application deployment.