DigitalOcean Holdings, Inc. $DOCN Shares Sold by Vanguard Group Inc.

Key Points

• Vanguard Group Inc. trimmed its position in DigitalOcean by 3.8% in Q4, selling 357,959 shares and now holds 9,004,930 shares (about 9.84% of the company) valued at roughly $433.3 million.
• Q1 beat and AI guidance: DigitalOcean reported $0.44 EPS (vs. $0.27 est.) and $257.9M revenue (+22.4% YoY), raised Q2 and FY26 guidance, and saw a sharp stock rally (up ~40.6%) as management emphasized AI-driven demand and new inference products.
• Risks remain: the stock trades at a rich valuation (about P/E ~60), several analyst targets sit below current levels, and recent insider selling could create short-term supply pressure if execution or AI monetization lags.

Vanguard Group Inc. lessened its position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) by 3.8% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 9,004,930 shares of the company's stock after selling 357,959 shares during the period. Vanguard Group Inc. owned about 9.84% of DigitalOcean worth $433,317,000 as of its most recent SEC filing.

Several other hedge funds also recently made changes to their positions in DOCN. Alyeska Investment Group L.P. acquired a new stake in shares of DigitalOcean during the 3rd quarter valued at approximately $21,808,000. Danske Bank A S acquired a new position in DigitalOcean in the third quarter worth $14,582,000. Lazard Asset Management LLC boosted its holdings in DigitalOcean by 34.5% in the second quarter. Lazard Asset Management LLC now owns 1,660,731 shares of the company's stock worth $47,430,000 after purchasing an additional 426,264 shares during the period. Van Berkom & Associates Inc. increased its stake in 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 during the last quarter. Finally, Fund 1 Investments LLC acquired a new stake in shares of DigitalOcean during the third quarter worth $13,011,000. Institutional investors and hedge funds own 49.77% of the company's stock.

Trending Headlines about DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: Q1 beat on both EPS and revenue (EPS $0.44 vs. $0.27 est.; revenue $257.9M vs. $249.8M) and management raised FY26 and Q2 guidance, giving investors confidence in near-term growth. DigitalOcean Stock Soars 18% After Q1 Double Beat, Raises FY26 Guidance
• Positive Sentiment: Management emphasized AI-driven demand on the earnings call and highlighted new AI/inference products (Inference Engine) and capacity expansion — framing DigitalOcean as a go-to for AI-native customers. DigitalOcean (DOCN) Earnings Call Signals AI-Fueled Surge
• Positive Sentiment: Market reaction and analyst commentary point to accelerating revenue growth and improving margins after the quarter, supporting a re-rating in an AI-focused market backdrop. DigitalOcean surges as it ups guidance after strong Q1 results
• Positive Sentiment: The stock hit an all-time high as investors priced in the combination of beats, raised guidance and AI product traction. DigitalOcean (DOCN) Hits All-Time High on Stellar Revenues, Upbeat Q2
• Neutral Sentiment: Full earnings call transcript and slide deck are available for deeper due diligence (useful for verifying commentary on customer adoption, unit economics and capacity plans). DigitalOcean Holdings, Inc. (DOCN) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Insider selling and shifts in institutional holdings were flagged in pre-earnings positioning reports — worth monitoring for potential short-term supply pressure. DigitalOcean shares rise as investors position ahead of Q1 earnings and recent AI product announcements
• Negative Sentiment: Valuation is rich vs. longer-term comps (P/E ~60) and several analyst price targets remain below current levels (median ~$105), leaving upside tied to sustained execution and AI monetization. DigitalOcean shares rise as investors position ahead of Q1 earnings and recent AI product announcements

DigitalOcean Trading Up 40.6%

Shares of NYSE DOCN opened at $153.03 on Wednesday. The stock has a 50 day simple moving average of $79.74 and a 200-day simple moving average of $60.64. The company has a market cap of $15.97 billion, a PE ratio of 60.48 and a beta of 1.42. DigitalOcean Holdings, Inc. has a 12-month low of $25.56 and a 12-month high of $153.47.

DigitalOcean (NYSE:DOCN - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.27 by $0.17. The firm had revenue of $257.91 million for the quarter, compared to analysts' expectations of $249.76 million. DigitalOcean had a negative return on equity of 127.00% and a net margin of 28.76%.The firm's revenue was up 22.4% compared to the same quarter last year. During the same period last year, the firm earned $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. Sell-side analysts forecast that DigitalOcean Holdings, Inc. will post 0.4 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on DOCN. UBS Group raised their price target on shares of DigitalOcean from $62.00 to $97.00 and gave the stock a "neutral" rating in a research report on Tuesday, April 21st. Royal Bank Of Canada set a $60.00 price objective on shares of DigitalOcean in a research note on Tuesday, February 24th. Stifel Nicolaus set a $57.00 target price on DigitalOcean in a research note on Tuesday, February 24th. Canaccord Genuity Group increased their price target on DigitalOcean from $80.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Finally, Barclays set a $183.00 price target on DigitalOcean in a report on Wednesday. Nine investment 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 presently has a consensus rating of "Moderate Buy" and an average price target of $101.46.

Insider Buying and Selling at DigitalOcean

In other news, CAO Cherie Barrett sold 22,000 shares of the firm's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the transaction, the chief accounting officer directly owned 62,469 shares of the company's stock, valued at approximately $3,421,427.13. This trade represents a 26.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Matt Steinfort sold 20,000 shares of DigitalOcean stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $55.40, for a total transaction of $1,108,000.00. Following the sale, the chief financial officer owned 545,916 shares in the company, valued at approximately $30,243,746.40. This represents a 3.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.96% of the company's stock.

DigitalOcean 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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