DigitalOcean (NYSE:DOCN) Reaches New 52-Week High - Here's Why

Key Points

• DigitalOcean shares hit a new 52-week high, reaching as much as $165.99 intraday and closing near $161 after rising 1.6% on the day.
• Analysts turned more bullish on the stock, with several firms raising price targets; Barclays lifted its target to $183 and Citigroup to $180, while the consensus rating remains Moderate Buy.
• Recent earnings were strong, as DigitalOcean beat EPS and revenue estimates for the quarter and posted 22.4% year-over-year revenue growth, though insiders also continued selling shares.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report)'s stock price hit 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 traded. The stock had previously closed at $158.46.

Analysts Set New Price Targets

A number of equities analysts have commented on DOCN shares. Barclays lifted their price objective on shares of DigitalOcean from $105.00 to $183.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Citizens Jmp lifted their price objective on shares of DigitalOcean from $83.00 to $105.00 and gave the stock a "market outperform" rating in a report on Thursday, March 26th. Royal Bank Of Canada set a $60.00 price objective on shares of DigitalOcean in a report on Tuesday, February 24th. Bank of America lifted their price objective on shares of DigitalOcean from $103.00 to $107.00 and gave the stock a "buy" rating in a report on Thursday, April 9th. Finally, Citigroup lifted their price objective on shares of DigitalOcean from $115.00 to $180.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Nine equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $142.23.

DigitalOcean Trading Up 1.6%

The company 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 1.46. The firm's fifty day moving average price is $109.20 and its 200-day moving average price is $72.99.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced its quarterly earnings results 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. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. The company had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. During the same quarter in the previous year, the company posted $0.56 earnings per share. The company'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. On average, equities analysts expect that DigitalOcean Holdings, Inc. will post 0.55 EPS for the current fiscal year.

Insider Activity

In other news, CAO Cherie Barrett sold 22,000 shares of the business's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the completion of the transaction, the chief accounting officer owned 62,469 shares of the company's stock, valued at approximately $3,421,427.13. The trade was a 26.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of the business's stock in a transaction on Friday, May 15th. The shares were sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the transaction, the chief financial officer directly owned 573,272 shares of the company's stock, valued at approximately $87,423,980. This trade represents a 4.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 71,338 shares of company stock valued at $6,803,816. 0.96% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently modified their holdings of DOCN. Bullseye Asset Management LLC raised its stake in shares of DigitalOcean by 267.8% during the third quarter. Bullseye Asset Management LLC now owns 99,300 shares of the company's stock valued at $3,392,000 after purchasing an additional 72,300 shares in the last quarter. State of New Jersey Common Pension Fund D bought a new stake in shares of DigitalOcean during the fourth quarter valued at about $2,358,000. New York State Teachers Retirement System raised its stake in shares of DigitalOcean by 33.0% during the fourth quarter. New York State Teachers Retirement System now owns 49,310 shares of the company's stock valued at $2,373,000 after purchasing an additional 12,229 shares in the last quarter. Van Berkom & Associates Inc. raised its stake in shares of DigitalOcean by 33.1% during the third quarter. Van Berkom & Associates Inc. now owns 1,564,991 shares of the company's stock valued at $53,460,000 after purchasing an additional 389,161 shares in the last quarter. Finally, Penserra Capital Management LLC raised its stake in shares of DigitalOcean by 27.2% during the third quarter. Penserra Capital Management LLC now owns 293,132 shares of the company's stock valued at $10,013,000 after purchasing an additional 62,725 shares in 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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