DigitalOcean (NYSE:DOCN) CFO Sells $1,057,300.00 in Stock

DigitalOcean Holdings, Inc. (NYSE:DOCN) CFO Matt Steinfort sold 10,000 shares of the company’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the sale, the chief financial officer directly owned 503,692 shares in the company, valued at $53,255,355.16. This trade represents a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at 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.

DigitalOcean Stock Performance

Shares of DOCN opened at $112.42 on Friday. The firm has a 50-day moving average of $124.52 and a 200-day moving average of $116.97. DigitalOcean Holdings, Inc. has a one year low of $32.35 and a one year high of $187.50. The company has a market cap of $11.73 billion, a PE ratio of 51.33, a price-to-earnings-growth ratio of 96.28 and a beta of 1.57. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.31 and a quick ratio of 1.31.

DigitalOcean (NYSE:DOCN) last issued its earnings results on Tuesday, August 4th. The company reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.19. DigitalOcean had a net margin of 23.26% and a return on equity of 31.01%. The company had revenue of $281.18 million for the quarter, compared to analysts’ expectations of $279.03 million. During the same period in the prior year, the firm earned $0.39 EPS. DigitalOcean’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. As a group, equities analysts forecast that DigitalOcean Holdings, Inc. will post 0.63 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages have recently commented on DOCN. UBS Group reduced their target price on DigitalOcean from $155.00 to $140.00 and set a “neutral” rating for the company in a research note on Wednesday, August 5th. William Blair restated an “outperform” rating on shares of DigitalOcean in a research note on Wednesday, July 15th. Truist Financial assumed coverage on DigitalOcean in a report on Thursday, August 27th. They set a “buy” rating and a $175.00 price target for the company. Stifel Nicolaus upgraded shares of DigitalOcean from a “hold” rating to a “buy” rating and upped their price objective for the company from $135.00 to $160.00 in a report on Tuesday, July 21st. Finally, Citigroup upped their price target on shares of DigitalOcean from $185.00 to $190.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus target price of $152.81.

Institutional Trading of DigitalOcean

Several large investors have recently modified their holdings of DOCN. California State Teachers Retirement System lifted its position 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 worth $2,231,562,000 after purchasing an additional 14,122,879 shares during the period. Bank of America Corp DE bought a new position in DigitalOcean in the 2nd quarter valued at about $241,945,000. Principal Financial Group Inc. raised its position in shares of DigitalOcean by 155.3% in the 1st quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock valued at $95,080,000 after buying an additional 674,231 shares in the last quarter. Alyeska Investment Group L.P. bought a new stake in shares of DigitalOcean during the 3rd quarter worth approximately $21,808,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of DigitalOcean during the 2nd quarter worth approximately $98,011,000. 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.