DigitalOcean (NYSE:DOCN) Hits New 1-Year High - Time to Buy?

Key Points

• DigitalOcean shares hit a new 52-week high, trading as high as $185.92 and last up about 6.1% on the day, reflecting strong recent momentum in the stock.
• Wall Street analysts have turned more bullish, with several firms sharply raising price targets; the consensus rating remains “Moderate Buy,” and the average target sits at $146.36.
• Recent earnings beat expectations, as DigitalOcean reported $0.44 EPS versus $0.27 expected and revenue of $257.91 million, while also issuing Q2 and full-year 2026 guidance.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report)'s share price reached a new 52-week high during trading on Monday . The company traded as high as $185.92 and last traded at $181.6820, with a volume of 2040168 shares changing hands. The stock had previously closed at $170.44.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. Piper Sandler raised their target price on DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a report on Tuesday, May 5th. Barclays raised their target price on DigitalOcean from $105.00 to $183.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Cantor Fitzgerald raised their target price on DigitalOcean from $68.00 to $83.00 and gave the company an "overweight" rating in a report on Wednesday, February 25th. UBS Group raised their target price on DigitalOcean to $175.00 and gave the company a "neutral" rating in a report on Tuesday, May 12th. Finally, The Goldman Sachs Group raised their target price on DigitalOcean from $78.00 to $179.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, DigitalOcean currently has a consensus rating of "Moderate Buy" and a consensus price target of $146.36.

DigitalOcean Stock Up 6.1%

The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. The firm's 50-day moving average is $131.28 and its 200 day moving average is $84.10. The firm has a market capitalization of $18.88 billion, a PE ratio of 78.99 and a beta of 1.59.

DigitalOcean (NYSE:DOCN - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.27 by $0.17. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The business had revenue of $257.91 million for the quarter, compared to analyst estimates of $249.76 million. During the same period in the previous year, the firm earned $0.56 EPS. The business's revenue for the quarter was up 22.4% compared to the same quarter last year. 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, research analysts forecast that DigitalOcean Holdings, Inc. will post 0.54 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Hilary Schneider sold 4,338 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $156.38, for a total value of $678,376.44. Following the completion of the transaction, the director owned 24,323 shares of the company's stock, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Matt Steinfort sold 10,000 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $170.07, for a total transaction of $1,700,700.00. Following the completion of the transaction, the chief financial officer directly owned 538,414 shares of the company's stock, valued at $91,568,068.98. The trade was a 1.82% 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 a total of 39,338 shares of company stock worth $6,191,576 over the last quarter. Insiders own 0.96% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in DOCN. Principal Financial Group Inc. raised its stake in 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 purchasing an additional 674,231 shares during the last quarter. Alyeska Investment Group L.P. acquired a new position in DigitalOcean in the 3rd quarter valued at about $21,808,000. Arrowstreet Capital Limited Partnership raised its stake in DigitalOcean by 90.9% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,194,845 shares of the company's stock valued at $57,496,000 after purchasing an additional 568,823 shares during the last quarter. Vanguard Group Inc. raised its stake in DigitalOcean by 5.0% in the 3rd quarter. Vanguard Group Inc. now owns 9,362,889 shares of the company's stock valued at $319,836,000 after purchasing an additional 442,617 shares during the last quarter. Finally, Franklin Resources Inc. raised its stake in DigitalOcean by 784.2% in the 4th quarter. Franklin Resources Inc. now owns 494,314 shares of the company's stock valued at $23,786,000 after purchasing an additional 438,411 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company's stock.

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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