DigitalOcean (NYSE:DOCN) Reaches New 12-Month High Following Analyst Upgrade

Key Points

• DigitalOcean's shares hit a new 52-week high after UBS raised its price target to $160 (while keeping a neutral rating) and several analysts lifted targets following a Q1 beat; the company reported $0.44 EPS and $257.9M revenue and raised FY26 guidance, with management highlighting AI-driven demand.
• Investors should note recent insider selling (CAO sold 22,000 shares; CFO sold 20,000) and valuation/earnings cautions—EPS declined year‑over‑year (from $0.56 to $0.44) and the stock trades at a high P/E (~70), which may temper the rally.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report)'s share price hit a new 52-week high on Thursday after UBS Group raised their price target on the stock from $105.00 to $160.00. UBS Group currently has a neutral rating on the stock. DigitalOcean traded as high as $161.96 and last traded at $161.0490, with a volume of 6082173 shares. The stock had previously closed at $152.77.

Several other research analysts also recently commented on the stock. Oppenheimer set a $190.00 target price on shares of DigitalOcean in a report on Wednesday. Royal Bank Of Canada set a $60.00 price target on shares of DigitalOcean in a report on Tuesday, February 24th. Cantor Fitzgerald raised their price target on DigitalOcean from $68.00 to $83.00 and gave the company an "overweight" rating in a research report on Wednesday, February 25th. Canaccord Genuity Group set a $200.00 price objective on DigitalOcean in a research note on Wednesday. Finally, Stifel Nicolaus set a $57.00 target price on DigitalOcean in a research note on Tuesday, February 24th. Nine research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $136.08.

Insider Buying and Selling at DigitalOcean

In other DigitalOcean news, CAO Cherie Barrett sold 22,000 shares of the stock in a transaction 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 sale, the chief accounting officer directly owned 62,469 shares of the company's stock, valued at $3,421,427.13. This represents a 26.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Matt Steinfort sold 20,000 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $55.40, for a total transaction of $1,108,000.00. Following the completion of the sale, the chief financial officer owned 545,916 shares in the company, valued at $30,243,746.40. This represents a 3.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.96% of the stock is owned by corporate insiders.

More DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q1 results and guidance beat — DigitalOcean reported $0.44 EPS and $257.9M revenue (both above consensus) and raised FY26 EPS and Q2 revenue guidance, a catalyst behind the rally. DigitalOcean Stock Soars 18% After Q1 Double Beat, Raises FY26 Guidance
• Positive Sentiment: Beating the details — the quarter showed 22% YoY revenue growth and margin expansion, with slide deck and call underlining stronger cash flow prospects. DigitalOcean Earnings Release & Conference Call
• Positive Sentiment: AI narrative fueling demand — management and analysts highlighted DigitalOcean’s capacity expansion and positioning for AI-native customers as a multi-year growth driver. DigitalOcean: Massive Momentum As Capacity Expands
• Positive Sentiment: Analysts raise forecasts — multiple analysts lifted estimates after Q1, citing stronger revenue trajectory and higher FY26 guidance. Analyst upgrades and raised targets helped push the stock to fresh highs. DigitalOcean Analysts Increase Their Forecasts Following Strong Q1 Results
• Positive Sentiment: Market momentum — coverage pieces and headlines note an AI-driven rally and the stock reached an all-time high on the strong results and outlook. DigitalOcean (DOCN) Hits All-Time High on Stellar Revenues, Upbeat Q2
• Neutral Sentiment: UBS raised its price target from $105 to $160 but kept a "neutral" rating, implying limited near-term upside per that analyst despite the higher target. Benzinga: UBS Raises Price Target
• Neutral Sentiment: Analytical pieces examine sustainability — market write-ups ask how far the AI-fueled rally can run, useful context for investors weighing growth vs. valuation. DigitalOcean’s AI Surge: How Far Can This Rally Go?
• Negative Sentiment: EPS comparison and valuation questions — while Q1 beat, EPS declined versus the prior year ($0.56 last year vs $0.44 this quarter), and some investors may be cautious as valuation has expanded following the run. Zacks: DOCN Surpasses Q1 Earnings and Revenue Estimates

Hedge Funds Weigh In On DigitalOcean

Several large investors have recently added to or reduced their stakes in DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of DigitalOcean by 5.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company's stock worth $11,342,000 after acquiring an additional 16,162 shares during the period. Intech Investment Management LLC increased its position in shares of DigitalOcean by 59.2% during the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company's stock valued at $1,317,000 after purchasing an additional 14,655 shares during the period. Amundi raised its stake in shares of DigitalOcean by 126,552.2% in the second quarter. Amundi now owns 29,130 shares of the company's stock valued at $827,000 after purchasing an additional 29,107 shares in the last quarter. Jump Financial LLC bought a new position in DigitalOcean in the second quarter worth $3,212,000. Finally, Qube Research & Technologies Ltd lifted its position in DigitalOcean by 69.7% in the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company's stock worth $11,842,000 after purchasing an additional 170,339 shares during the period. Institutional investors and hedge funds own 49.77% of the company's stock.

DigitalOcean Price Performance

The stock has a market cap of $16.81 billion, a price-to-earnings ratio of 70.33 and a beta of 1.42. The company has a debt-to-equity ratio of 0.92, a current ratio of 1.46 and a quick ratio of 0.69. The stock's 50 day simple moving average is $81.78 and its two-hundred day simple moving average is $61.47.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.27 by $0.17. The company 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 quarter in the prior year, the company posted $0.56 EPS. DigitalOcean has set its Q2 2026 guidance at 0.200-0.230 EPS and its FY 2026 guidance at 1.100-1.200 EPS. On average, analysts forecast that DigitalOcean Holdings, Inc. will post 0.4 earnings per share for the current fiscal year.

About DigitalOcean

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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