DigitalOcean (NYSE:DOCN) CAO Sells $589,840.72 in Stock

Key Points

• DigitalOcean CAO Cherie Barrett sold 4,456 shares for approximately $589,841 under a pre-arranged Rule 10b5-1 trading plan, reducing her direct holdings by 6.37% to 65,487 shares.
• DigitalOcean reported quarterly EPS of $0.45, beating estimates of $0.26, while revenue rose 28.6% year over year to $281.18 million.
• Wall Street maintains a “Buy” consensus on DOCN, with an average price target of $151.33; shares recently traded at $135.14.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) CAO Cherie Barrett sold 4,456 shares of the business's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $132.37, for a total transaction of $589,840.72. Following the transaction, the chief accounting officer directly owned 65,487 shares of the company's stock, valued at approximately $8,668,514.19. This represents a 6.37% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

DigitalOcean Price Performance

DOCN traded up $5.22 on Monday, reaching $135.14. The company had a trading volume of 2,341,251 shares, compared to its average volume of 3,434,926. DigitalOcean Holdings, Inc. has a 52-week low of $29.62 and a 52-week high of $187.50. 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 company has a market cap of $14.10 billion, a price-to-earnings ratio of 61.71, a P/E/G ratio of 111.22 and a beta of 1.61. The business has a 50 day simple moving average of $139.08 and a 200 day simple moving average of $112.17.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its earnings results on Tuesday, August 4th. The company reported $0.45 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.19. DigitalOcean had a return on equity of 31.01% and a net margin of 23.26%.The business had revenue of $281.18 million for the quarter, compared to analysts' expectations of $279.03 million. During the same quarter in the prior year, the firm earned $0.39 earnings per share. The firm's revenue was up 28.6% on a year-over-year basis. 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, sell-side analysts anticipate that DigitalOcean Holdings, Inc. will post 0.63 EPS for the current year.

Hedge Funds Weigh In On DigitalOcean

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP increased its stake in shares of DigitalOcean by 54.4% in the 3rd quarter. Allworth Financial LP now owns 724 shares of the company's stock worth $25,000 after acquiring an additional 255 shares in the last quarter. Parallel Advisors LLC boosted its stake in DigitalOcean by 66.2% during the first quarter. Parallel Advisors LLC now owns 324 shares of the company's stock worth $28,000 after acquiring an additional 129 shares in the last quarter. Huntington National Bank grew its holdings in DigitalOcean by 638.3% in the fourth quarter. Huntington National Bank now owns 598 shares of the company's stock worth $29,000 after purchasing an additional 517 shares during the period. NBC Securities Inc. bought a new position in shares of DigitalOcean during the fourth quarter valued at approximately $32,000. Finally, Banque Cantonale Vaudoise bought a new position in shares of DigitalOcean during the first quarter valued at approximately $33,000. Hedge funds and other institutional investors own 49.77% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts recently commented on DOCN shares. Barclays lifted 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. Weiss Ratings raised shares of DigitalOcean from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Oppenheimer set a $190.00 target price on shares of DigitalOcean in a report on Wednesday, May 6th. Piper Sandler boosted their price target on DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a report on Tuesday, May 5th. Finally, William Blair reaffirmed an "outperform" rating on shares of DigitalOcean in a research report on Wednesday, July 15th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, DigitalOcean presently has a consensus rating of "Buy" and an average target price of $151.33.

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.

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