DigitalOcean (NYSE:DOCN) Reaches New 12-Month High – Should You Buy?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s share price reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $165.99 and last traded at $161.06, with a volume of 1970973 shares changing hands. The stock had previously closed at $158.46.

Analyst Ratings Changes

A number of research firms have issued reports on DOCN. The Goldman Sachs Group boosted their target price on shares of DigitalOcean from $78.00 to $179.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a report on Friday, March 27th. Barclays raised their target price on DigitalOcean from $105.00 to $183.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Bank of America lifted their target price on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. Finally, UBS Group lifted their target price on DigitalOcean to $175.00 and gave the company a “neutral” rating in a research note on Tuesday, May 12th. Nine analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $142.23.

DigitalOcean Stock Up 0.8%

The firm’s fifty day moving average price is $112.25 and its 200-day moving average price is $74.44. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 1.46. The firm has a market capitalization of $15.82 billion, a P/E ratio of 66.20 and a beta of 1.42.

DigitalOcean (NYSE:DOCN) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.17. The business had revenue of $257.91 million during the quarter, compared to analysts’ expectations of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The business’s revenue was up 22.4% on a year-over-year basis. During the same period last year, the firm posted $0.56 earnings per share. 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.

Insider Activity

In other news, CAO Cherie Barrett sold 22,000 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total value of $1,204,940.00. Following the completion of the transaction, the chief accounting officer directly owned 62,469 shares in the company, valued at $3,421,427.13. This trade represents a 26.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Hilary Schneider sold 4,338 shares of the 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 transaction, the director owned 24,323 shares of the company’s stock, valued at $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 71,338 shares of company stock worth $6,803,816 over the last three months. Corporate insiders own 0.96% of the company’s stock.

Institutional Trading of DigitalOcean

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC boosted its holdings in DigitalOcean by 14.8% in the 1st quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company’s stock valued at $47,000 after purchasing an additional 71 shares during the period. Parallel Advisors LLC boosted its holdings in DigitalOcean by 66.2% in the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after purchasing an additional 129 shares during the period. Maryland State Retirement & Pension System boosted its holdings in DigitalOcean by 1.9% in the 4th quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock valued at $481,000 after purchasing an additional 185 shares during the period. Allworth Financial LP boosted its holdings in DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after purchasing an additional 255 shares during the period. Finally, CWM LLC boosted its holdings in DigitalOcean by 1.3% in the 4th quarter. CWM LLC now owns 20,971 shares of the company’s stock valued at $1,009,000 after purchasing an additional 270 shares during the period. 49.77% of the stock is owned by institutional investors and hedge funds.

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.