DigitalOcean (NYSE:DOCN) Hits New 12-Month High – What’s Next?

DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock price hit a new 52-week high on Thursday . The company 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.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Morgan Stanley boosted their price target on DigitalOcean from $75.00 to $175.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. UBS Group boosted their price target on DigitalOcean to $175.00 and gave the company a “neutral” rating in a research note on Tuesday, May 12th. Oppenheimer set a $190.00 price target on DigitalOcean in a research note on Wednesday, May 6th. Citizens Jmp boosted their price target on DigitalOcean from $83.00 to $105.00 and gave the company a “market outperform” rating in a research note on Thursday, March 26th. Finally, Bank of America boosted their price target on DigitalOcean from $103.00 to $107.00 and gave the company a “buy” rating in a research note on Thursday, April 9th. Nine investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $142.23.

DigitalOcean Trading Up 0.4%

The stock has a 50 day simple moving average of $105.50 and a 200-day simple moving average of $71.12. The firm has a market capitalization of $16.59 billion, a P/E ratio of 69.40 and a beta of 1.42. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.92.

DigitalOcean (NYSE:DOCN) last released its quarterly earnings results 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 business had revenue of $257.91 million during the quarter, compared to the consensus estimate of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.The business’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same period in the previous 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, equities research analysts forecast that DigitalOcean Holdings, Inc. will post 0.55 EPS for the current fiscal year.

Insider Activity at DigitalOcean

In related news, Director Hilary Schneider sold 4,338 shares of the business’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 transaction of $678,376.44. Following the completion of the transaction, the director directly owned 24,323 shares in the company, valued at approximately $3,803,630.74. The trade was a 15.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Cherie Barrett sold 22,000 shares of the business’s stock in a transaction that occurred 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 transaction, the chief accounting officer 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 SEC filing for this sale provides additional information. In the last ninety days, insiders sold 71,338 shares of company stock worth $6,803,816. 0.96% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC grew its stake in shares of DigitalOcean by 14.8% during the 1st quarter. EverSource Wealth Advisors LLC now owns 551 shares of the company’s stock valued at $47,000 after acquiring an additional 71 shares during the period. Parallel Advisors LLC grew its stake in shares of DigitalOcean by 66.2% during the 1st quarter. Parallel Advisors LLC now owns 324 shares of the company’s stock valued at $28,000 after acquiring an additional 129 shares during the period. Maryland State Retirement & Pension System grew its stake in shares of DigitalOcean by 1.9% during the 4th quarter. Maryland State Retirement & Pension System now owns 10,001 shares of the company’s stock valued at $481,000 after acquiring an additional 185 shares during the period. Allworth Financial LP grew its stake in shares of DigitalOcean by 54.4% during the 3rd quarter. Allworth Financial LP now owns 724 shares of the company’s stock valued at $25,000 after acquiring an additional 255 shares during the period. Finally, CWM LLC grew its stake in shares of DigitalOcean by 1.3% during the 4th quarter. CWM LLC now owns 20,971 shares of the company’s stock valued at $1,009,000 after acquiring an additional 270 shares during the period. 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.