Legato Capital Management LLC Makes New $1.37 Million Investment in DigitalOcean Holdings, Inc. $DOCN

Legato Capital Management LLC bought a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 28,370 shares of the company’s stock, valued at approximately $1,365,000.

Several other institutional investors also recently modified their holdings of DOCN. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of DigitalOcean by 5.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 339,670 shares of the company’s stock worth $11,342,000 after purchasing an additional 16,162 shares during the last quarter. Intech Investment Management LLC grew its stake in shares of DigitalOcean by 59.2% in the first quarter. Intech Investment Management LLC now owns 39,429 shares of the company’s stock worth $1,317,000 after purchasing an additional 14,655 shares during the last quarter. Amundi grew its stake in shares of DigitalOcean by 126,552.2% in the second quarter. Amundi now owns 29,130 shares of the company’s stock worth $827,000 after purchasing an additional 29,107 shares during the last quarter. Jump Financial LLC bought a new stake in shares of DigitalOcean in the second quarter worth $3,212,000. Finally, Qube Research & Technologies Ltd grew its stake in shares of DigitalOcean by 69.7% in the second quarter. Qube Research & Technologies Ltd now owns 414,643 shares of the company’s stock worth $11,842,000 after purchasing an additional 170,339 shares during the last quarter. Institutional investors own 49.77% of the company’s stock.

Insider Activity at DigitalOcean

In other news, CFO Matt Steinfort sold 25,000 shares of the company’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $152.50, for a total transaction of $3,812,500.00. Following the transaction, the chief financial officer owned 573,272 shares in the company, valued at approximately $87,423,980. This represents a 4.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Cherie Barrett sold 22,000 shares of the company’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $54.77, for a total transaction of $1,204,940.00. Following the transaction, the chief accounting officer owned 62,469 shares in the company, valued at $3,421,427.13. This represents a 26.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 71,338 shares of company stock worth $6,803,816 over the last quarter. Company insiders own 0.96% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on DOCN. Weiss Ratings reissued a “hold (c+)” rating on shares of DigitalOcean in a research note on Friday, March 27th. Canaccord Genuity Group boosted their price objective on shares of DigitalOcean from $120.00 to $200.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Oppenheimer set a $190.00 price objective on shares of DigitalOcean in a research note on Wednesday, May 6th. The Goldman Sachs Group boosted their price objective on shares of DigitalOcean from $78.00 to $179.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Finally, Citigroup boosted their target price on shares of DigitalOcean from $115.00 to $180.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Nine research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $142.23.

DigitalOcean Price Performance

DOCN stock opened at $158.93 on Monday. The firm has a market cap of $16.59 billion, a price-to-earnings ratio of 69.40 and a beta of 1.42. 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 Holdings, Inc. has a 12-month low of $25.56 and a 12-month high of $165.99. The company’s fifty day simple moving average is $105.50 and its 200 day simple moving average is $71.33.

DigitalOcean (NYSE:DOCN) last released its earnings results 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 $257.91 million for 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 revenue for the quarter was up 22.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.56 earnings per share. 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, analysts expect that DigitalOcean Holdings, Inc. will post 0.55 earnings per share for the current year.

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.