148,083 Shares in DigitalOcean Holdings, Inc. $DOCN Acquired by Summit Creek Advisors LLC

Key Points

• Summit Creek Advisors LLC initiated a new position in DigitalOcean, buying 148,083 shares valued at about $7.1 million in the fourth quarter.
• DigitalOcean reported strong quarterly results, with EPS of $0.44 beating estimates and revenue of $257.91 million topping expectations; revenue also rose 22.4% year over year.
• Analysts remain broadly positive on DOCN, with a Moderate Buy consensus and a target price of $142.23, even as the stock recently traded around $160 and insiders sold shares over the last 90 days.

Summit Creek Advisors LLC bought a new position in shares of DigitalOcean Holdings, Inc. (NYSE:DOCN - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm bought 148,083 shares of the company's stock, valued at approximately $7,126,000. Summit Creek Advisors LLC owned 0.16% of DigitalOcean at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Allworth Financial LP grew its stake in DigitalOcean by 54.4% during the third quarter. Allworth Financial LP now owns 724 shares of the company's stock worth $25,000 after purchasing an additional 255 shares during the period. NBC Securities Inc. acquired a new stake in DigitalOcean during the fourth quarter worth approximately $32,000. Wilmington Savings Fund Society FSB acquired a new stake in DigitalOcean during the third quarter worth approximately $37,000. Advisory Services Network LLC acquired a new stake in DigitalOcean during the third quarter worth approximately $54,000. Finally, GAMMA Investing LLC grew its stake in DigitalOcean by 33.8% during the fourth quarter. GAMMA Investing LLC now owns 1,581 shares of the company's stock worth $76,000 after purchasing an additional 399 shares during the period. Institutional investors and hedge funds own 49.77% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have commented on DOCN. Canaccord Genuity Group raised their price objective on DigitalOcean from $120.00 to $200.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Piper Sandler raised their price objective on DigitalOcean from $98.00 to $155.00 and gave the company a "neutral" rating in a research note on Tuesday, May 5th. Royal Bank Of Canada set a $60.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. Citigroup raised their price objective on DigitalOcean from $115.00 to $180.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Finally, Stifel Nicolaus set a $57.00 price objective on DigitalOcean in a research note on Tuesday, February 24th. Nine investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $142.23.

DigitalOcean Trading Up 6.7%

Shares of DigitalOcean stock opened at $160.11 on Thursday. The stock has a market capitalization of $16.71 billion, a PE ratio of 69.92 and a beta of 1.42. The company has a debt-to-equity ratio of 0.92, a quick ratio of 1.46 and a current ratio of 1.46. DigitalOcean Holdings, Inc. has a 52 week low of $25.56 and a 52 week high of $164.77. The stock has a 50 day moving average price of $101.77 and a two-hundred day moving average price of $69.68.

DigitalOcean (NYSE:DOCN - Get Free Report) last announced 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 company had revenue of $257.91 million for the quarter, compared to analysts' expectations of $249.76 million. DigitalOcean had a return on equity of 88.86% and a net margin of 24.97%.DigitalOcean's quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter in the previous year, the firm 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. As a group, equities analysts anticipate that DigitalOcean Holdings, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Activity at DigitalOcean

In related news, CFO Matt Steinfort sold 25,000 shares of DigitalOcean stock in a transaction that occurred on Friday, May 15th. The stock was 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 of the company's stock, valued at $87,423,980. The trade was a 4.18% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CAO Cherie Barrett sold 22,000 shares of DigitalOcean 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 directly owned 62,469 shares in the company, valued at approximately $3,421,427.13. The trade was 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 valued at $6,803,816 over the last 90 days. Insiders own 0.96% of the company's stock.

DigitalOcean 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.

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