DigitalOcean Holdings Inc (NYSE: DOCN)’s stock price has decreased by -4.00 compared to its previous closing price of 29.87. However, the company has seen a 2.70% increase in its stock price over the last five trading sessions. fool.com reported 2025-05-30 that Shares of DigitalOcean (DOCN -1.10%) experienced a sharp pullback in the past three months after a bright start to the year. The drop seems quite surprising considering the company delivered a couple of solid quarterly reports so far in 2025.
Is It Worth Investing in DigitalOcean Holdings Inc (NYSE: DOCN) Right Now?
The price-to-earnings ratio for DigitalOcean Holdings Inc (NYSE: DOCN) is 26.26x, which is above its average ratio. Moreover, the 36-month beta value for DOCN is 1.78. Analysts have varying opinions on the stock, with 3 analysts rating it as a “buy,” 4 as “overweight,” 6 as “hold,” and 0 as “sell.”
The public float for DOCN is 61.41M and currently, short sellers hold a 11.86% of that float. On June 05, 2025, DOCN’s average trading volume was 1.42M shares.
DOCN’s Market Performance
DOCN’s stock has seen a 2.70% increase for the week, with a 1.50% rise in the past month and a -28.53% fall in the past quarter. The volatility ratio for the week is 2.85%, and the volatility levels for the past 30 days are at 3.18% for DigitalOcean Holdings Inc The simple moving average for the past 20 days is -3.12% for DOCN’s stock, with a -22.33% simple moving average for the past 200 days.
Analysts’ Opinion of DOCN
Many brokerage firms have already submitted their reports for DOCN stocks, with Citigroup repeating the rating for DOCN by listing it as a “Buy.” The predicted price for DOCN in the upcoming period, according to Citigroup is $45 based on the research report published on January 24, 2025 of the current year 2025.
Cantor Fitzgerald, on the other hand, stated in their research note that they expect to see DOCN reach a price target of $39. The rating they have provided for DOCN stocks is “Neutral” according to the report published on January 17th, 2025.
Morgan Stanley gave a rating of “Overweight” to DOCN, setting the target price at $41 in the report published on January 16th of the current year.
DOCN Trading at -4.45% from the 50-Day Moving Average
After a stumble in the market that brought DOCN to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -39.02% of loss for the given period.
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Insider Trading
Reports are indicating that there were more than several insider trading activities at DOCN starting from AI Droplet Subsidiary LLC, who proposed sale 1,987,060 shares at the price of $28.60 back on Jun 04 ’25. After this action, AI Droplet Subsidiary LLC now owns shares of DigitalOcean Holdings Inc, valued at $56,829,916 using the latest closing price.
AI Droplet Holdings LLC, the Owner of DigitalOcean Holdings Inc, proposed sale 1,509,444 shares at $28.60 during a trade that took place back on Jun 04 ’25, which means that AI Droplet Holdings LLC is holding shares at $43,170,098 based on the most recent closing price.
Stock Fundamentals for DOCN
Current profitability levels for the company are sitting at:
- 0.15 for the present operating margin
- 0.6 for the gross margin
The net margin for DigitalOcean Holdings Inc stands at 0.13. The total capital return value is set at 0.08.
Based on DigitalOcean Holdings Inc (DOCN), the company’s capital structure generated 1.14 points at debt to capital in total, while cash flow to debt ratio is standing at 0.16. The debt to equity ratio resting at -8.27. The interest coverage ratio of the stock is 12.99.
Currently, EBITDA for the company is 236.86 million with net debt to EBITDA at 5.29. When we switch over and look at the enterprise to sales, we see a ratio of 4.97. The receivables turnover for the company is 10.53for trailing twelve months and the total asset turnover is 0.49. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.42.
Conclusion
To wrap up, the performance of DigitalOcean Holdings Inc (DOCN) has been mixed in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
