DigitalOcean (NYSE:DOCN) Sets New 52-Week High - Should You Buy?

Key Points

• DigitalOcean shares hit a new 52-week high, trading as high as $165.99 and last near $161, as the stock continued its strong recent run. The company’s shares were up about 0.7% on the day.
• Analysts remain broadly positive on DOCN, with nine Buy ratings and three Hold ratings, giving it a consensus "Moderate Buy." Recent price targets were raised by firms including UBS, Piper Sandler, and Citigroup, with the target range now stretching as high as $180.
• Latest earnings topped expectations, as DigitalOcean reported Q1 EPS of $0.44 versus $0.27 expected and revenue of $257.9 million, up 22.4% year over year. The company also issued Q2 and full-year 2026 guidance, while insiders recently sold shares.

DigitalOcean Holdings, Inc. (NYSE:DOCN - Get Free Report) shares reached a new 52-week high on Thursday . The stock traded as high as $165.99 and last traded at $161.0980, with a volume of 733366 shares traded. The stock had previously closed at $160.11.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. UBS Group raised their price objective on DigitalOcean to $175.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 12th. Piper Sandler raised their price objective on DigitalOcean from $98.00 to $155.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 5th. Citizens Jmp raised their price objective on DigitalOcean from $83.00 to $105.00 and gave the stock a "market outperform" rating in a research note on Thursday, March 26th. Citigroup raised their target price on DigitalOcean from $115.00 to $180.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of DigitalOcean in a research report on Friday, March 27th. Nine analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $142.23.

DigitalOcean Trading Up 0.7%

The firm has a market cap of $16.83 billion, a price-to-earnings ratio of 70.45 and a beta of 1.42. The company has a 50-day moving average price of $101.77 and a 200 day moving average price of $69.68. The company has a quick ratio of 1.46, a current ratio of 1.46 and a debt-to-equity ratio of 0.92.

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, topping the consensus estimate of $0.27 by $0.17. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business had revenue of $257.91 million during the quarter, compared to analyst estimates of $249.76 million. During the same period last year, the company earned $0.56 earnings per share. DigitalOcean's quarterly revenue 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 anticipate that DigitalOcean Holdings, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Hilary Schneider sold 4,338 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $156.38, for a total transaction of $678,376.44. Following the completion of the sale, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Matt Steinfort sold 25,000 shares of the stock in a transaction on Friday, May 15th. The stock was sold at an average price of $152.50, for a total value of $3,812,500.00. Following the sale, the chief financial officer owned 573,272 shares of the company's stock, valued at approximately $87,423,980. This represents a 4.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 71,338 shares of company stock worth $6,803,816. Corporate insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On DigitalOcean

Institutional investors have recently bought and sold shares of the stock. Parallel Advisors LLC raised its holdings in DigitalOcean by 66.2% during the first quarter. Parallel Advisors LLC now owns 324 shares of the company's stock valued at $28,000 after buying an additional 129 shares in the last quarter. Banque Cantonale Vaudoise bought a new position in shares of DigitalOcean in the first quarter worth about $33,000. EverSource Wealth Advisors LLC increased its stake in shares of DigitalOcean by 14.8% in the first quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company's stock worth $47,000 after purchasing an additional 71 shares during the period. Huntington National Bank increased its stake in shares of 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. Finally, NBC Securities Inc. bought a new position in shares of DigitalOcean in the fourth quarter worth about $32,000. 49.77% of the stock is currently owned by institutional investors.

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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