DigitalOcean (NYSE:DOCN) Stock Price Up 7% – Here’s What Happened

Shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) rose 7% during trading on Tuesday . The stock traded as high as $132.95 and last traded at $131.9870. 369,369 shares changed hands during trading, a decline of 90% from the average daily volume of 3,858,257 shares. The stock had previously closed at $123.32.

Key Stories Impacting DigitalOcean

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: KeyCorp raised its earnings estimates for DigitalOcean across multiple periods, including Q2, Q3, Q4, FY2026 and out years through FY2029, while keeping a Strong-Buy rating. Higher EPS forecasts suggest improving profitability expectations, which can support the stock.
• Positive Sentiment: DigitalOcean announced a plan to repurchase up to $500 million of its 2030 convertible senior notes, funded by a concurrent registered offering. Investors may view this as a balance-sheet optimization move that could reduce future dilution and improve capital structure flexibility. Article Title
• Neutral Sentiment: A Yahoo Finance piece argued that DOCN could be 29% undervalued based on 2026 revenue growth guidance. That supports the bull case, but it is an opinion-based valuation view rather than a company announcement. Article Title
• Neutral Sentiment: KeyCorp’s repeated estimate increases also reinforce the view that DigitalOcean’s earnings trajectory may be improving over the next several years, but these are still analyst projections, not actual results.

Analyst Ratings Changes

A number of brokerages have issued reports on DOCN. Citizens Jmp lifted their target price on shares of DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research note on Thursday, March 26th. Oppenheimer set a $190.00 price objective on DigitalOcean in a report on Wednesday, May 6th. William Blair reissued an “outperform” rating on shares of DigitalOcean in a research report on Wednesday. Bank of America boosted their target price on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. Finally, Morgan Stanley upped their target price on DigitalOcean from $75.00 to $175.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $145.36.

DigitalOcean Trading Down 5.3%

The company has a market cap of $12.48 billion, a price-to-earnings ratio of 52.20 and a beta of 1.57. The company’s 50 day moving average price is $155.54 and its 200 day moving average price is $100.40. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings data 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. The business had revenue of $257.90 million during the quarter, compared to analyst estimates of $249.76 million. DigitalOcean had a net margin of 24.97% and a return on equity of 88.86%. DigitalOcean’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the business 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. Research analysts anticipate that DigitalOcean Holdings, Inc. will post 0.56 EPS for the current year.

Insider Activity

In related news, Director Hilary Schneider sold 4,338 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $156.38, for a total value of $678,376.44. Following the transaction, the director directly owned 24,323 shares of the company’s stock, valued at approximately $3,803,630.74. This trade represents a 15.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $170.07, for a total value of $1,700,700.00. Following the completion of the sale, the chief financial officer owned 538,414 shares of the company’s stock, valued at approximately $91,568,068.98. This trade represents a 1.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. In the last quarter, insiders have sold 39,338 shares of company stock valued at $6,191,576. 0.96% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DigitalOcean

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DOCN. Park National Corp OH bought a new position in shares of DigitalOcean in the second quarter valued at approximately $237,000. Spire Wealth Management bought a new stake in shares of DigitalOcean during the 2nd quarter worth $3,513,000. Portside Wealth Group LLC bought a new stake in shares of DigitalOcean during the 2nd quarter worth $363,000. LRI Investments LLC acquired a new position in DigitalOcean in the 2nd quarter valued at $64,000. Finally, Y Intercept Hong Kong Ltd acquired a new position in DigitalOcean in the 2nd quarter valued at $8,714,000. 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.