DigitalOcean (NYSE:DOCN) Stock Price Down 5.5% – Time to Sell?

DigitalOcean Holdings, Inc. (NYSE:DOCN) shares were down 5.5% on Friday . The company traded as low as $125.19 and last traded at $123.8250. 1,118,736 shares were traded during mid-day trading, a decline of 69% from the average daily volume of 3,648,876 shares. The stock had previously closed at $131.05.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the stock. Barclays boosted their target price on shares of DigitalOcean from $160.00 to $161.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 5th. Citigroup increased their price objective on DigitalOcean from $185.00 to $190.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Stifel Nicolaus upgraded DigitalOcean from a “hold” rating to a “buy” rating and boosted their target price for the stock from $135.00 to $160.00 in a research note on Tuesday, July 21st. Canaccord Genuity Group reaffirmed a “buy” rating and issued a $200.00 price target on shares of DigitalOcean in a report on Friday, July 10th. Finally, UBS Group reduced their price objective on shares of DigitalOcean from $155.00 to $140.00 and set a “neutral” rating for the company in a research report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, DigitalOcean has a consensus rating of “Moderate Buy” and a consensus price target of $152.81.

DigitalOcean Price Performance

The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31. The company has a 50 day moving average price of $122.95 and a 200 day moving average price of $118.97. The firm has a market cap of $12.82 billion, a PE ratio of 55.74, a PEG ratio of 113.57 and a beta of 1.57.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.19. The company had revenue of $281.18 million for the quarter, compared to analysts’ expectations of $279.03 million. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. DigitalOcean’s revenue was up 28.6% compared to the same quarter last year. During the same period in the previous year, the company posted $0.39 EPS. DigitalOcean has set its FY 2026 guidance at 1.350-1.400 EPS and its Q3 2026 guidance at 0.280-0.300 EPS. Sell-side 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 business’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 transaction of $520,842.00. Following the transaction, the director owned 67,433 shares in the company, valued at approximately $8,362,366.33. The trade was a 5.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, 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 transaction, the chief financial officer owned 503,692 shares in the company, valued at $53,255,355.16. The trade was a 1.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders sold 22,641 shares of company stock valued at $2,589,317 over the last ninety days. Corporate insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several hedge funds have recently modified their holdings of the business. Legato Capital Management LLC purchased a new stake in DigitalOcean during the 4th quarter worth about $1,365,000. Summit Creek Advisors LLC acquired a new stake in shares of DigitalOcean during the 4th quarter worth about $7,126,000. Wealth High Governance Asset Management Ltda. purchased a new stake in shares of DigitalOcean during the first quarter worth about $8,986,000. Danske Bank A S purchased a new position in shares of DigitalOcean during the second quarter valued at approximately $1,488,000. Finally, Spectrum Strategic Capital Management LLC acquired a new stake in DigitalOcean during the fourth quarter worth approximately $606,000. 49.77% of the stock is owned by institutional investors and hedge funds.

DigitalOcean Company Profile

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.