DigitalOcean Holdings, Inc. $DOCN Shares Bought by Summit Creek Advisors LLC

Summit Creek Advisors LLC increased its position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) by 28.8% in the third quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 44,350 shares of the company’s stock after buying an additional 9,918 shares during the quarter. DigitalOcean accounts for about 2.4% of Summit Creek Advisors LLC’s portfolio, making the stock its 14th biggest holding. Summit Creek Advisors LLC’s holdings in DigitalOcean were worth $5,916,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of DOCN. Bank of America Corp DE bought a new position in shares of DigitalOcean during the 2nd quarter worth approximately $241,945,000. Principal Financial Group Inc. lifted its position in shares of DigitalOcean by 155.3% in the first quarter. Principal Financial Group Inc. now owns 1,108,420 shares of the company’s stock worth $95,080,000 after purchasing an additional 674,231 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in shares of DigitalOcean in the second quarter worth $98,011,000. Allspring Global Investments Holdings LLC boosted its holdings in DigitalOcean by 81.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 683,707 shares of the company’s stock worth $59,947,000 after purchasing an additional 306,529 shares during the last quarter. Finally, Sei Investments Co. boosted its holdings in DigitalOcean by 82.8% during the first quarter. Sei Investments Co. now owns 370,223 shares of the company’s stock worth $31,758,000 after purchasing an additional 167,659 shares during the last quarter. Institutional investors and hedge funds own 49.77% of the company’s stock.

DigitalOcean Price Performance

Shares of DOCN opened at $72.23 on Friday. The company has a current ratio of 1.15, a quick ratio of 1.31 and a debt-to-equity ratio of 0.61. The company’s fifty day simple moving average is $116.36 and its 200 day simple moving average is $111.68. DigitalOcean Holdings, Inc. has a 1-year low of $41.96 and a 1-year high of $187.50. The company has a market cap of $8.52 billion, a price-to-earnings ratio of 233.00, a PEG ratio of 94.28 and a beta of 1.69.

DigitalOcean (NYSE:DOCN) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $0.45 EPS for the quarter, beating analysts’ consensus estimates of $0.32 by $0.13. DigitalOcean had a net margin of 3.11% and a return on equity of 15.01%. The firm had revenue of $321.19 million during the quarter, compared to analysts’ expectations of $306.74 million. During the same quarter last year, the company posted $0.54 earnings per share. The company’s revenue for the quarter was up 39.6% compared to the same quarter last year. On average, research analysts forecast that DigitalOcean Holdings, Inc. will post 0.65 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on DOCN. Weiss Ratings lowered shares of DigitalOcean from a “hold (c+)” rating to a “sell (d+)” rating in a research note on Wednesday. Zacks Research upgraded shares of DigitalOcean from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 19th. Canaccord Genuity Group decreased their price objective on DigitalOcean from $200.00 to $180.00 and set a “buy” rating for the company in a report on Wednesday. Stifel Nicolaus set a $130.00 target price on DigitalOcean in a research report on Tuesday. Finally, Morgan Stanley dropped their target price on DigitalOcean from $175.00 to $150.00 and set an “overweight” rating on the stock in a report on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $141.06.

Insider Transactions at DigitalOcean

In related news, CFO Matt Steinfort sold 10,000 shares of DigitalOcean stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $105.73, for a total transaction of $1,057,300.00. Following the completion of the transaction, the chief financial officer owned 503,692 shares in the company, valued at approximately $53,255,355.16. This trade represents a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 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. Also, CAO Cherie Barrett sold 3,985 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 $421,334.05. Following the transaction, the chief accounting officer directly owned 58,399 shares in the company, valued at approximately $6,174,526.27. This trade represents a 6.39% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last ninety days, insiders sold 18,441 shares of company stock worth $2,068,475. 0.96% of the stock is owned by insiders.

DigitalOcean News Summary

Here are the key news stories impacting DigitalOcean this week:

• Positive Sentiment: DigitalOcean announced a collaboration with Box, which could expand the reach of its cloud services. The announcement provides no further details in the supplied headline. DigitalOcean announces collaboration with Box
• Positive Sentiment: Earlier coverage pointed to higher guidance and AI revenue growth as reasons for investor optimism. DigitalOcean Stock Jumps On Higher Guidance And AI Revenue Growth
• Neutral Sentiment: Goldman Sachs lowered its price target from $178 to $156 but kept a Buy rating, signaling continued optimism alongside a more cautious valuation. Goldman Sachs price-target update
• Negative Sentiment: UBS, Canaccord Genuity and Citigroup were reported to have cut their price targets or issued a more pessimistic outlook, adding pressure to sentiment. Canaccord nevertheless maintained a Buy rating. UBS Group price-target cut Canaccord Genuity price-target cut Citigroup forecast
• Negative Sentiment: Coverage also highlighted a $1 billion offering and argued DOCN could be substantially below fair value after its results. The offering may raise concerns about financing and potential dilution. DigitalOcean Holdings Could Be 62% Below Fair Value Following Results And $1b Offering

DigitalOcean Profile

DigitalOcean Holdings, Inc provides cloud computing services designed primarily for developers, startups, and small and midsize businesses. Founded in 2011, the company focuses on making it easier for customers to build, deploy, and scale applications without managing their own physical infrastructure.

Its platform includes virtual machines known as Droplets, managed Kubernetes, an application platform, managed databases, object storage, and networking and monitoring tools. These services support tasks ranging from hosting websites and applications to developing and running cloud-native software.

DigitalOcean serves customers around the world through its cloud platform and data center infrastructure.