Mirae Asset Global Investments Co. Ltd. Purchases New Stake in DigitalOcean Holdings, Inc. $DOCN

Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 41,753 shares of the company’s stock, valued at approximately $5,569,000.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Parallel Advisors LLC grew its holdings 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 in the last quarter. Root Financial Partners LLC purchased a new stake in shares of DigitalOcean during the third quarter worth $31,000. Optiver Holding B.V. raised its holdings in shares of DigitalOcean by 1,063.9% during the first quarter. Optiver Holding B.V. now owns 419 shares of the company’s stock worth $36,000 after acquiring an additional 383 shares in the last quarter. SSI Investment Management LLC purchased a new stake in shares of DigitalOcean during the second quarter worth $37,000. Finally, Hilltop National Bank acquired a new stake in DigitalOcean during the second quarter valued at $38,000. Hedge funds and other institutional investors own 49.77% of the company’s stock.

DigitalOcean Trading Down 16.0%

Shares of NYSE:DOCN opened at $70.58 on Friday. The stock has a market capitalization of $7.37 billion, a PE ratio of 227.68, a P/E/G ratio of 73.25 and a beta of 1.69. DigitalOcean Holdings, Inc. has a 1 year low of $41.96 and a 1 year high of $187.50. The firm has a fifty day moving average price of $117.35 and a 200 day moving average price of $111.57. The company has a current ratio of 1.15, a quick ratio of 1.31 and a debt-to-equity ratio of 0.61.

DigitalOcean (NYSE:DOCN) last posted its earnings results on Tuesday, November 3rd. The company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.13. DigitalOcean had a return on equity of 15.01% and a net margin of 3.11%. The company had revenue of $321.19 million for the quarter, compared to analyst estimates of $306.74 million. During the same period last year, the company earned $0.54 earnings per share. The business’s revenue was up 39.6% compared to the same quarter last year. Analysts expect that DigitalOcean Holdings, Inc. will post 0.62 EPS for the current fiscal year.

Key DigitalOcean News

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean’s stock had previously jumped after the company raised guidance and cited AI revenue growth, giving investors signs of continued demand and expansion. DigitalOcean Stock Jumps On Higher Guidance And AI Revenue Growth
• Positive Sentiment: A third-quarter review highlighted accelerating revenue from software-driven cloud adoption and expansion of DigitalOcean’s platform, supporting the company’s growth narrative. DOCN Q3 deep dive
• Neutral Sentiment: Goldman Sachs lowered its price target to $156 but kept a Buy rating. The target remains well above the share price cited in the report, though the reduction signals a more cautious valuation view. Goldman Sachs ratings
• Negative Sentiment: Coverage flagged a $1 billion offering, which could raise concerns about potential share dilution or added stock supply. The accompanying analysis nevertheless describes DOCN as potentially trading below its estimated fair value. DigitalOcean Could Be 62% Below Fair Value Following Results And $1b Offering
• Negative Sentiment: Several analysts reduced targets: Canaccord to $180, Citi to $160, Barclays to $140, UBS to $100, and Stifel to $130. Canaccord, Citi, and Barclays retained positive ratings, while UBS stayed Neutral; the cuts may still temper expectations. Canaccord analyst ratings UBS price target update Stifel price target update

Analyst Ratings Changes

A number of research analysts have commented on DOCN shares. Weiss Ratings downgraded DigitalOcean from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 9th. Stifel Nicolaus set a $130.00 price target on DigitalOcean in a research note on Tuesday. Barclays reduced their price target on DigitalOcean from $161.00 to $140.00 and set an “overweight” rating for the company in a report on Wednesday. Truist Financial began coverage on DigitalOcean in a research note on Thursday, August 27th. They issued a “buy” rating and a $175.00 price target for the company. Finally, Canaccord Genuity Group dropped their price objective on DigitalOcean from $200.00 to $180.00 and set a “buy” rating on the stock in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $141.06.

Insider Buying and Selling

In related news, CAO Cherie Barrett sold 4,456 shares of the firm’s stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $132.37, for a total value of $589,840.72. Following the transaction, the chief accounting officer directly owned 65,487 shares of the company’s stock, valued at approximately $8,668,514.19. This trade represents a 6.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Matt Steinfort sold 10,000 shares of the business’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total value of $1,057,300.00. Following the completion of the sale, the chief financial officer owned 503,692 shares of the company’s stock, valued at approximately $53,255,355.16. This trade represents a 1.95% 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. Insiders sold a total of 18,441 shares of company stock worth $2,068,475 over the last three months. 0.96% of the stock is owned by company insiders.

DigitalOcean Company Profile

DigitalOcean Holdings, Inc is a cloud computing company that provides infrastructure and developer-focused services for startups, small and medium-sized businesses, and individual developers. Its platform is designed to simplify the deployment, management, and scaling of applications without requiring customers to build and operate extensive in-house infrastructure.

The company’s offerings include Droplets, its virtual machine service; managed Kubernetes; managed databases; object and block storage; networking tools; and application deployment services through App Platform.